Analyst Conference 20 May 2009 - Dr. Lutz Guderjahn, COO Joachim Lutz, CFO - CropEnergies AG
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Analyst Conference 20 May 2009
Dr. Lutz Guderjahn, COO
Joachim Lutz, CFO
2009-05-20 Analyst Conference 1
Highlights of the 2008/09 financial year
EU passes framework conditions for a growing market for sustainably
produced bioethanol
Market position in Europe is expanded with the completion
of the investment programme to increase annual production
capacity to over 700,000 m³ of
bioethanol according to plan
Production and sales of bioethanol
increased by over 70%
Product portfolio successfully
expanded
Bioethanol for technical
and traditional applications
High-grade food and animal feed
products: Gluten, ProtiWanze®
Government support for “Bio-refinery
2021” research project
2009-05-20 Analyst Conference 2
Political framework – EU
Renewable Energies Directive
Mandatory blending rate for
biofuels of 10% for the year
2020, increased indicative target
of 5.75% for the year 2010
Introduction of sustainability
criteria (e.g. reduction of greenhouse
gas emissions by at least 35%)
Amendment of the Fuel Quality Directive
Technical basis for EU-wide introduction of E10
Consequences
Market for sustainably produced bioethanol in EU is growing
National action plans to be presented by 30 June 2010 at the latest
2009-05-20 Analyst Conference 3
Political framework – Germany
Lower house of parliament assents to lower biofuel quotas
Total quota lowered to 5.25% in 2009 and 6.25% in 2010 and beyond
Minimum quota in petrol lowered from 3.6% to 2.8% in 2010
E10 restricted to company petrol pumps
despite adoption of industry
standard Bioethanol consumption or minimum
requirement, respectively
Consequences: 1,600
Additional potential, overall
4.0%
quota (E5)
1,400 3.5%
Slower market growth for Bioethanol consumption or 191
1,200 minimum requirement 3.0%
bioethanol in Germany 1,000 Actual/minimum quota for 2.80% 2.5%
thousand m³
petrol
Political framework conditions 800 2.0%
1.87%
need to be adjusted to the 600 1,209 1.5%
1.3%
developments at the EU level 400
581
790 1.0%
200 0.5%
15 May 2009 0 0.0%
2007 2008 2009e
Upper house of German parliament
appeals to mediation committee Source: BAFA, BDBe, BMU
2009-05-20 Analyst Conference 4
Overview: The ethanol markets in 2008 (I)
World production Europe
Growth of 23.6% to 79 million m³. Growth of 21.4% in total
production to 4.37 million m³
65.6 million m³ for applications in
the fuel sector (83%) 2.8 million m3 for applications
in the fuel sector (+56%)
US is the largest ethanol producer
EU’s share of world production:
(52%) before Brazil (37%) approx. 4%
Development of bioethanol production in the
Development of world production of fuel ethanol European Union
USA Brazil
70,000 3,000
EU-27 RoW
60,000 2,816
50,000
2,000
thous a nd m ³
thousand m³
40,000 1,803
1,608
30,000
1,000
20,000 913
10,000
0 0
2006 2007 2008 2005 2006 2007 2008
Source: eBIO Source: eBIO
2009-05-20 Analyst Conference 5
Overview: The ethanol markets in 2008 (II)
Europe Germany
France: the largest bioethanol Direct blending: +183.4%
producer (35.5%)
Bioethanol for ETBE virtually
Growth in Germany, Austria and unchanged at approx. 469,000 m3
Hungary, among others
Bioethanol in E85: +43%
Declines: Spain, Sweden
Development of European bioethanol production Development of bioethanol sales in Germany
1,000,000 m³ 3
799,000 m
1,000,000
800,000 + 36 %
2007 2008 800,000 580,000 m
3
3 600,000 40.2 %
m
600,000 19.3 %
400,000 400,000 79.7 %
58.7 %
200,000
200,000
0
0 2007 2008
Bioethanol in ETBE Direct blending bioethanol
D
T
ER
N
R
T
A
K
L
T
A
N
P
O
L
L
E
AU
LE
IR
ES
NE
BE
PO
LI
FR
CZ
HU
SW
B
IT
FI
SL
G
G
Source: eBIO Bioethanol in E85 Source: BAFA
2009-05-20 Analyst Conference 6
Price trends on the relevant markets
300
Normalisation on the grain markets
250
Price fall after a record harvest in the
2008/09 grain year
€/t
200
M. Wheat Matif
Financial investors liquidate speculative
150
trading positions
Good harvests also expected for 2009/10 100
07 07 0 7 08 08 0 8 09 09
20 20 20 20 20 20 20 20
Sharp decline in ethanol prices Ja
n
Ma
i
Se
p
Ja
n
Ma
i
Se
p
Ja
n
Ma
i
Relatively constant prices in 2008 650
Steep price fall in Europe since the 600
beginning of 2009 due to good supply 550
situation for bioethanol in Europe. 500
€/m³
Generally subdued demand for fuels due 450
Kingsman EU Ethanol FOB ARA T2
to the global financial and economic crisis 400
350
300
07 7 07 08 8 08 09 9
20 00 20 20 00 20 20 00
n ai2 p n ai2 p n ai2
Ja M Se Ja M Se Ja M
2009-05-20 Analyst Conference 7
Investment programme successfully implemented
May 2007 June 2008
Work begins on Expansion of the
expanding the bioethanol bioethanol plant
plant in Zeitz in Zeitz is completed
December 2008
Bioethanol plant in
Wanze is brought
on stream
September 2006 May 2007 June 2008
CropEnergies AG goes Construction of the bioethanol Ryssen’s bioethanol refinery
public and investment plant in Wanze begins in Loon-Plage is successfully
programme is announced integrated
2009-05-20 Analyst Conference 8
The CropEnergies production plants
CropEnergies AG
Mannheim – Germany
Zeitz – Germany Wanze – Belgium Loon-Plage – France
CropEnergies Bioethanol GmbH BioWanze SA Ryssen Alcools SAS
Æ Europe’s largest plant Æ Europe’s most innovative Æ Europe’s most flexible plant with
with an annual capacity of plant with greenhouse gas a broad product spectrum to meet
360,000 m³ of bioethanol reductions of 70% all customer requirements
2009-05-20 Analyst Conference 9
The CropEnergies production plants
CropEnergies AG
Mannheim - Germany
Zeitz – Germany
Wanze – Belgium Loon-Plage – France
CropEnergies
BioWanze SA Ryssen Alcools SAS
Bioethanol GmbH
Æ Europe‘s largest plant Æ Europe‘s most innovative plant Æ Europe‘s most flexible plant
Annual capacity: Annual capacity: Annual capacity:
360,000 m³ of bioethanol up to 300,000 m³ of bioethanol 100,000 m³ of fuel bioethanol
260,000 t of ProtiGrain® approx. 55,000 t of gluten 80,000 m³ of bioethanol for
(DDGS) more than 200,000 t of traditional and technical
ProtiWanze® (CDS) applications
Raw materials:
Grain and sugar syrups Raw materials: Raw material:
Wheat and sugar syrups Raw alcohol
Characteristic:
Unrivalled efficiency and Characteristic: Characteristic:
feedstock flexibility CO2-optimised production Versatility in terms of product
process using biomass as energy specifications and supply
source volumes
Annual capacity: over 700,000 m³ of bioethanol and over 500,000 tonnes of food and animal feed products
2009-05-20 Analyst Conference 10Production in the 2008/09 financial year
Bioethanol
Production:
500,000
436,000 m3 of bioethanol (+77%) 436,000
450,000
221,000 tonnes of ProtiGrain® (+16%) 400,000
350,000 +77%
Zeitz 300,000
247,000
m³
250,000
Second production line brought on stream in 200,000
July 2008 150,000
100,000
Daily capacity raised to over 1,000 m³ of bioethanol 50,000
Wheat, maize, barley, triticale and sugar syrups 0
2007/08 2008/09
used as raw materials
Wanze ProtiGrain®
500,000
Brought on stream in December 2008 450,000
400,000
Sugar syrups used as raw material
350,000
Wheat processed since March 2009 300,000
tonnes
250,000 + 16% 221,000
Loon-Plage (Ryssen) 200,000
190,000
150,000
High capacity utilisation up to target 100,000
Broad product spectrum for diverse applications 50,000
0
2007/08 2008/09
2009-05-20 Analyst Conference 11Sales volumes in the 2008/09 financial year
Bioethanol: Bioethanol
482,000
482,000 m3 of bioethanol (+73%) 500,000
450,000
110,000
+ 73 %
Trading business expanded to 110,000 400,000
(43,000) m³ bioethanol to develop the 350,000
300,000
279,000
markets in preparation for the new 43,000
m³
250,000
capacities coming on stream 200,000
150,000
Focus on inland destinations 100,000
50,000
Logistics network extended by tank 0
storage facilities leased in Duisburg 2007/08 2008/09
Leading position in the German E85
ProtiGrain®
market expanded 500,000
450,000
Penetration of new market segments 400,000
through Ryssen 350,000
300,000
tonnes
Food and animal feed products 250,000
189,000
+ 15 % 219,000
200,000
219,000 tonnes of ProtiGrain® (+15%) 150,000
100,000
Product portfolio expanded with the 50,000
start-up of BioWanze 0
2007/08 2008/09
2009-05-20 Analyst Conference 12Successful expansion of the product portfolio
Bioethanol for traditional and technical applications
Supplying well-known manufacturers in the beverage,
perfume and cosmetics industries
Producing and marketing dehydrated alcohol for further
processing in the chemical industry
Food and animal feed products
Gluten for the food and animal feed industry
Valuable protein product
Used especially in the food industry and specialised
areas of the animal feed market, e.g. fish farms
Distributed through BENEO-Orafti with its global sales
network under the brand name BeneoPro W
ProtiWanze®
Condensed Distillers’ Solubles
Liquid protein animal feed for cattle and pigs
Marketed together with distribution partners
2009-05-20 Analyst Conference 13“Bio-refinery 2021” research project
Research project “Energy from biomass –
New roads to the integrated bio-refinery”
Research consortium of 10 research institutes and
6 industrial partners
Project coordinated by the Deutsches
BiomasseForschungsZentrum (German Biomass
Research Centre) in Leipzig and CropEnergies,
among others
Research fields
Further development and optimisation of the
processes in bioethanol production
Broadening the usable biomass resources
Developing additional marketable products
Development and assessment of integrated
bio-refinery concepts
Application for government support under the
German Education and Research Ministry
“Bioenergy 2021” programme approved in the
amount of € 5 million
2009-05-20 Analyst Conference 14Strategic targets
Short-term targets
Expand leading market position in Germany and
Europe by utilising the available annual production
capacity of over 700,000 m³ of bioethanol
Build on technology and cost leadership in Europe by
increasing the efficiency especially of the new plants
Further development of E85 market in Germany
Medium-term targets
Improve the profitability and greenhouse gas balance
of the production locations by optimising the
commercialisation of co-products
“Bio-refinery 2021” research project together with the
Deutsches BiomasseForschungsZentrum in Leipzig
Long-term targets
Tap new growth opportunities
Organic growth through the implementation of pioneering
production concepts
Research activities into the use of bioethanol in fuel cells
2009-05-20 Analyst Conference 152009-05-20 Analyst Conference 16
Highlights of financial year 2008/09
Growth strategy continued: sales up to € 328.4 (186.8) million
Profitable despite challenging environment:
EBITDA catches up to previous year € 28.6 (31.0) million
Net earnings of € 5.9 (20.2) million mainly reflect start-up costs for BioWanze
CropEnergies AG´s net earnings of € 6.0 (1.3) million wipe out loss carry-forward
Capacity expansion to over 700,000 m³/a bioethanol
Tripling of capacities since 2006/07 (260,000 m³/a)
Solid financing: Shareholders’ equity rose to € 309 million or equity ratio 54%
2009-05-20 Analyst Conference 17Income Statement - Overview
Sales
350
(in € million) 2008/09 2007/08 ∆ 300
Sales 328.4 186.8 +76% 250
28.6 31.0 -8%
in € million
EBITDA
200
Operating profit 18.2 22.0 -17% 150
328
Operating margin 5.5% 11.8%
100
187
Income from operations 7.1 17.0 -58% 147
50
Net earnings for the year 5.9 20.2 -71%
0
2006/07 2007/08 2008/09
2006/07 2007/08 2008/09
Operating profit affected by:
Higher raw material costs EBITDA vs. operating profit
Higher production and sales volumes
35
30
in € million
25
Net earnings affected by: 20
29.0 31.0 28.6
15
Start-up cost for capacity expansion BioWanze 10 21.0 22.0 18.2
5
Lower interest income due to investments 0
2006/07 2007/08 2008/2009
EBITDA Operating Profit
2009-05-20 Analyst Conference 18Sales Sales CropEnergies-Group
400
Increase by 76% resp. € 141.6 million to € 328.4 million
300
Rising bioethanol sales to 482,000 (279,000) m³
in € million
thereof merchandise increased by 67,000 to 110,000 m³ 200
328.4
to prepare markets for new capacities 100
146.8 186.8
Rising sales of ProtiGrain® to 219,000 (189,000) t
0
First consolidation Ryssen Alcools SAS 2006/07 2007/08 2008/09
500
Sales Bioethanol
Rising international share in sales 400
in 1,000 m³
300
481
200
Sales € 328 million 2008/09 Sales € 187 million 2007/08
279
100
238
0
€ 167 Abroad Germany € 161 € 80 Abroad Germany € 107 2006/07 2007/08 2008/09
million 51% 49% million million 43% 57% million
225 Sales ProtiGrain®
in 1,000 t
180 220 219
Biggest producer of bioethanol in Germany
189
Production share exceeds 50%
135
2006/07 2007/08 2008/09
2009-05-20 Analyst Conference 19EBITDA and operating profit
EBITDA and operating profit
EBITDA € 28.6 (31.0) million -8%
31.0
29.0
Operating profit € 18.2 (22.0) million -17% 30.0 30
25.0 25
19.8%
in m illion €
20.0 20
in %
16.6%
Profitable in difficult environment 15.0 15
10.0 14.3% 8.7% 10
Increase in grain prices 11.8%
5.0 28.6 5.5% 5
Decrease in bioethanol prices 0.0 0
2006/07 2007/08 2008/09
Start-up BioWanze
EBITDA Operating profit
Key success factors of CropEnergies
EBITDA margin Operating margin
Superior systems engineering
Flexible raw material input: grains/sugar syrups
ProtiGrain®-Hedge
Logistical advantages
Full capacity utilisation gives economies of scale
2009-05-20 Analyst Conference 20Operating cost structure
Raw material cost ratio 81% (69%) Operating
Operating CostStructure
Cost Structure
Higher grain prices 100
Support from sugar syrups 90
80
Sales benefit from higher ProtiGrain®
in % of total output
70
revenues 60
50
Cost degression through growth
40 81
Personnel costs and depreciation 64 69
30
ratio declines to 3-4 (around 4-5)% 20
Lower other operating costs/income 10
ratio of 6 (10)% 0
2006/07 2007/08 2008/2009
material personnel other depreciation
2009-05-20 Analyst Conference 21Increase in production volumes per quarter
Expansion of market position
Production increase to 436,000 m³/a Production per quarter
Produktion per quarter
bioethanol
160
Completion of extension Zeitz to 360,000 m³/a
139
(June 2008) 140
123
Start BioWanze with up to 300,000 m³/a 120 114
in 1,000 m³ bioethanol
(December 2008) 100
Acquisition Ryssen 80 74
66
(from June 2008) 62 64
59 62
55
60
48 48
100,000 m³/a bioethanol for the fuel sector
40
80,000 m³/a alcohol for traditional and
technical applications 20
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
06/07 06/07 06/07 06/07 07/08 07/08 07/08 07/08 08/09 08/09 08/09 08/09
2009-05-20 Analyst Conference 22Income from operations
(in € million) 2008/09 2007/08 ∆ %
Sales 328.4 186.8 141.6 76
Operating profit 18.2 22.0 -3.8 -17
Restructuring/special items -11.1 -5.0 -6.1
Income from operations 7.1 17.0 -9.9 -58
Special items due to start-up costs BioWanze (Belgium)
2009-05-20 Analyst Conference 23Net earnings for the year
(in € million) 2008/09 2007/08 ∆ %
Income from operations 7.1 17.0 -9.9 -58
Financial result -3.5 2.9 -6.4
Earnings before taxes 3.6 19.9 -16.3 -82
Taxes 2.2 0.3 1.9
Net earnings 5.9 20.2 -14.3 -71
Number of shares ( in million) 85 85
Earnings per share in € 0.07 0.24 -0.17 -71
Financial result: lower income from interest due to investments
Tax benefits abroad (last year: one-off tax income from German Company Tax Reform)
2009-05-20 Analyst Conference 24Net profit of CropEnergies AG (HGB/German GAAP)
(in € million) 2008/09 2007/08 Δ
Net profit 6.0 1.3 4.7
Loss carry-forward at the beginning of the year 5.7 6.9
Unappropriated profit (+) / -loss at year end 0.3 -5.7
For the first time, CropEnergies AG wipes out loss carry-forward
Suggestion to AGM: Unappropriated net profit € 336,172.38 to be carried forward
2009-05-20 Analyst Conference 25Investments, cash flow and financing activities
(in € million) 2008/09 2007/08 ∆
Cash flow 10 26 -16
Investments* -183 -145 Cash flow and investments
Cash flow after investments -173 -119 -54 190
150
Decrease (+) / Increase (-)
Working Capital
2 17
110
183
Consolidation -10 0 70
145
30
Increase in net financial debts -181 -101 -10
26 10
2007/08 2008/09
Cash flow Investments
Net financial debt -168 13
* net of grants/including acquisition Ryssen
2009-05-20 Analyst Conference 26Balance sheet structure
600 28 Feb
15 2009
(in € million) 28 Feb 2009 29 Feb 2008 Δ
72
Assets 132
500
Intangible assets 5 1 4
Property, plant and equipment 477 309 168
Deferred tax assets 16 6 10
Non-current assets 498 316 182 400
132
Inventories 35 13 22
Mio. € €
Ininmillion
Trade receivables and other assets 37 24 13
Securities, cash and cash equivalents 3 92 -88 300
Current assets 75 129 -54
498
Total assets 573 444 128
200
Liabilities and shareholders' equity 309
Shareholders' equity 309 304 5
100
Other liabilities and deferred tax liabilities 24 19 5
Non-current financial liabilities 109 68 41
Non-current liabilities 132 87 45
0
Current financial liabilities 62 10 53 Aktiva Passiva
Assets Liabilities
Other current liabilities 70 44 26
Total liabilities and shareholders' equity 573 444 128 Non-current assets Shareholders' equity
Other current assets Non-current liabilities
Increase in non-current assets due to investments
Securities and cash Other current liabilities
Solid balance sheet structure
2009-05-20 Analyst Conference 27Financial ratios
(in € million) 28 Feb. 2009 29 Feb. 2008
Shareholders' equity 309 304
Total assets 573 444
Equity ratio 54% 69%
Net financial debt (-) -168 13
thereof long-term -109 -68
thereof short-term -59 81
Cash flow 10 26
Working Capital (w/c) 8 -7
Working Capital in % of sales 3% -4%
Ø-Capital Employed (fixed assets + w/c) 317 175
ROCE (operating profit / Ø-CE) 5.7% 12.6%
2009-05-20 Analyst Conference 28Outlook CropEnergies-Group 2009/10
Difficult environment: Financial crisis and currently low energy prices
Targets 2009/10:
Profitable capacity utilisation: Significant increases in production to over 600,000 m³/a
Extension of value-added chain and further efficiency improvements
Solid financial position:
Increase in cash flow, decline in investments
Forecast:
Sales growth to over € 400 (328.3) million
Elimination of start-up cost BioWanze
In Q1 operating cost prevail
In total, operating profit is expected to exceed last year’s level
2009-05-20 Analyst conference 29Disclaimer
This presentation contains forward-looking statements that reflect managements current views with respect to future
events. The forward-looking statements involve certain risks and uncertainties that could cause actual results to differ
materially from those contained in the forward looking statements. Potential risks and uncertainties include such factors
as general economic conditions, foreign exchange fluctuations, competitive product and pricing pressures and
regulatory developments. We do not intend or assume any obligation to update any forward-looking statement, which
speaks only as of the date on which it is made.
2009-05-20 Analyst conference 30You can also read
