Investors Presentation - August 2021 Dr Stephan Meeder, CEO/CFO Heike Baumbach, Head of Investor Relations - CropEnergies AG
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Investors Presentation
August 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 202 million infected
As of 4 August 2021
Source: EEA Source: https://www.worldometers.info/coronavirus/worldwide-graphs/#total-cases
CropEnergies AG, August 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, August 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, August 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, August 2021 5
Renewable ethanol
Advantages
• Ethanol…
• As direct blend to petrol (e.g. E5, E10, E85) Blending
• As component in ETBE (octane booster)
Ethanol
• E10 reduces CO2, NOx and particulate matter Petrol
• WLTP* benchmark, label in tank flap of all new cars
• Potential savings (EU): >20 Mt CO2eq (8 million less cars on the E5 E10 E20 E85
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, August 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, August 2021 7
The ethanol markets
EU & UK production
• World production • EU & UK production
• 2021e: 122 million m3 (+3%) • 2021e: 7.7 million m3 (+3%)
o Fuel applications: 102 million m³ (+3%) o Fuel applications: 5.3 million m³ (+5%)
• 2022e: 128 million m3 (+5%) • 2022e: 8.1 million m3 (+5%)
o Fuel applications: 107 million m³ (+5%) o 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, August 2021 8
Market development
Volumes
• Ethanol market in the EU27 & UK in 2021 (in million m³) EU27 & UK: ethanol sales [1,000 m3]
• Consumption: 8.5 +2% (5.7 fuel | 2.9 non-fuel) 8,599 8,520 8,951
Source: IHS Markit (2021)
,
9.000 8,317
982 965 965
955
• Production: 7.7 +3% (5.3 fuel | 2.4 non-fuel) 1,618 1,950 1,890 1,860
• 2021 only slight recovery in fuel ethanol sales expected ,
4.500
5,999 5,412 5,665 6,162
• Non-fuel expected to remain stable in 2021
• Outlook: Strong increase in fuel ethanol expected in 2022 0
2019 2020 2021 2022
Fuel Industrial Potable
• Premium E10 continues to be on the rise in Europe E10 shares in selected countries
Source: ePURE (2021)
100%
• E10 already established as #1 petrol in many European countries
100%
100%
98%
95%
95%
95%
90%
80%
• Will be launched in Sweden and UK in August and September, respectively
72%
70%
50%
16%
47%
45%
0%
CropEnergies AG, August 2021 9
Market development
Prices and feedstock market
European ethanol prices [€/m3]
850
• European ethanol price* recovery in course of first quarter
• Due to increased mobility in many countries
o But also reflects higher global energy and grain prices 600
• Average ethanol price € 590 (492) /m³ in Q1
FY 19/20 FY 20/21 FY 21/22
350
• Feedstock market 2021/22
• Grain prices**: € 225 (191) /t in Q1
• EU grain harvest: 292 Mt (+5%) exceeds consumption of 263 Mt Euronext Paris Wheat [€/t]
275
• World grain harvest***: 2.261 Mt (+3%) with constant stocks (590 Mt)
• Still high price level despite promising harvest estimations
200
FY 19/20 FY 20/21 FY 21/22
125
* T2 FOB Rdam ** Wheat (Euronext), next expiry *** all types, without rice
CropEnergies AG, August 2021 10Renewable 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, August 2021 11Climate protection for Germany
• National implementation of RED-II
DE: GHG reduction quota
• Overall GHG quota from currently 6% to 25% in 2030 2020-2030
25%
o Penalty for non-compliance increases to € 600/t CO2äq from 2022 on 25%
o GHG quota will be further increased depending on the growth in e-mobility
20%
o Recognition of Upstream Emission Reductions will cease after 2026 17.5%
o Introduction of special blending quota for synthetic jet fuels from 2026 on 15%
12%
• Phase-out of high ILUC fuels (palm oil) from 2023 on* 9.25%
10% 8%
• Biofuels from arable crops: max. 4.4% (2018: 3.2%)* 6%
7%
• Advanced biofuels from residues min. 2.6% in 2030* 5%
• Multiple counting schemes for electromobility, advanced/synthetic fuels* 0%
* Further regulations to be laid down at ordinance level
CropEnergies AG, August 2021 12More climate protection for Europe
EU taxonomy regulation
• Classification system to promote sustainable investments
• Application on EU environmental targets
• From 2022: climate change mitigation and adaptation on climate change
• From 2023: Protection of water und maritime resources, transition to circular
economy, no/less environmental pollution and protection of
biodiversity/ecosystems
• Evaluation
• Positive: basic idea and recognition of the contribution of biofuels to climate
protection and the adaptation to climate change
• But: exclusion of crop-based biofuels for climate change mitigation measures is
arbitrary and in contradiction to the Renewable Energy Directive
CropEnergies AG, June 2021 13EU: Fit for 55 package
Renewable Energy Directive (RED-II) - overview on proposed revision
Overall ambition
• Overall RES target increase from 32% to 40%
RES-Transport target
• GHG intensity reduction of 13% by 2030 (replacing RES-T of 14% by energy)
• Crop-based biofuels: 2020 share of transport energy plus 1%, within 7% limit
• Annex IX Part A: at least 0.2% in 2022, 0.5% in 2025, and 2.2% in 2030
• Annex IX Part B: up to 1.7% (no increase upon request anymore)
• RFNBOs*: 2.6% by 2030
• No multiple counting, except adv. Biofuels/RFNBOs in aviation/maritime (x1.2)
• Stricter sustainability criteria
* Renewable liquid and gaseous transport fuels of non-biological origin
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, August 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, August 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
CropEnergies AG, August 2021 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, August 2021Q1 2021/22 & Outlook
Overview 1st quarter 2021/22 • Ethanol production 235 (208) ,000 m³ + 13% • Revenues € 214 (171) million + 25% • EBITDA € 25.5 (18.2) million + € 7 million • Operating profit € 15.1 (8.1) million + € 7 million • Net earnings € 10.1 (7.9) million + € 2 million • Net financial assets (vs. 28.02.2021) € 182.6 (154.6) million + € 28 million Note: Figures in parentheses relate to the corresponding prior-year period. CropEnergies AG, August 2021 21
Operating profit
Revenues / Production
[M€ / 1,000 m3]
400
(in € million) Q1 2021/22 Q1 2020/21 Δ
300 272
255 251
Revenues 214.1 170.7 + 25% 235
208
Overall performance 210.5 169.6 + 24% 200 229 226
208 214
Cost of materials* -163.0 -131.3 - 24% 171
100
Spread (gross) 47.5 38.3 + 24%
in % of overall performance 22.6% 22.6% - 0
Q1 Q2 Q3 Q4 Q1
Further
*without operating
restructuring expenses/income*
costs and special items -22.0 -20.1 - 10% 20/21 20/21 20/21 20/21 21/22
Operating profit [M€]
EBITDA* 25.5 18.2 + 40% 50
Margin 11.9% 10.7% - 43
40
Depreciation* -10.4 -10.1 - 3%
29 28
30
Operating profit 15.1 8.1 + 86%
*without restructuring costs and special items 20 15
• Significant increase in sales prices and quantities 10 8
• Higher specific raw material and energy costs 0
Q1 Q2 Q3 Q4 Q1
20/21 20/21 20/21 20/21 21/22
CropEnergies AG, August 2021 22Net earnings
Net earnings [Mio. €]
50
(in € million) Q1 2021/22 Q1 2020/21 Δ
40
Operating profit 15.1 8.1 + 86% 32
30
Restructuring costs / special items 0.0 0.0 - 24
22
At-equity result -0.1 0.1 - 20
10
Income from operations 15.0 8.2 + 83% 10 8
Financial result -0.9 2.3 - 0
Q1 Q2 Q3 Q4 Q1
Earnings before income taxes 14.1 10.5 + 34% 20/21 20/21 20/21 20/21 21/22
Taxes on income -3.9 -2.6 - 50%
Net earnings for the period 10.1 7.9 + 28%
Earnings per share (in €) 0.12 0.09 + 28%
• Unrealised currency effects included in financial result
• EPS increased to € 0.12 (0.09)
CropEnergies AG, August 2021 23Cash flow
Cash flow (+) / Investments* (-)
[M€]
50 *in PPE
(in € million) 2020/21 2019/20 Δ 40
Cash flow 21.2 15.5 + 5.7 30
Change in net working capital 12.9 18.5 - 5.6 21
20 16
Net cash flow from operating activities 34.1 34.0 + 0.1 10
Investments in property, plant et al. -4.7 -10.1 + 5.4
0
Cash received on divestments 0.0 0.0 + 0.0
-10 -5
Payments into financial receivables -18.1 -16.9 - 1.2
Q1 Q1
Payments into current financial investments 0.1 0.0 + 0.1 20/21 21/22
Net financial asset [M€]
Cash flow from investing activities -22.6 -26.9 + 4.3 250
Cash flow from financing activities -1.4 -0.9 - 0.5
200 183
Changes in exchange rates / consolidation basis 0.0 -0.1 + 0.1 165
155
150 130
Change in cash and cash equivalents 10.1 6.1 + 4.0
100 92
31/05/2021 31/05/2020 Δ
50
Net financial assets 182.6 130.2 + 52.4
0
• Significant increase in net financial assets
CropEnergies AG, August 2021 24Outlook 2021/22 • High raw material and energy costs with higher ethanol revenues • Revenues between € 925 and 975 million • EBITDA in a range of € 90 to 125 million • Operating profit between € 50 and 80 million CropEnergies AG, August 2021 25
Financial Calender
13 October 2021: Report for the 1st half of 2021/22
Contakt
12 January 2022: Statement for the 1st-3rd quarter of 2021/22 CropEnergies AG
18 May 2022: Annual report and press and analysts‘ conference FY 2021/22 Maximilianstraße 10
6 July 2022: Statement for the 1st quarter of 2022/23 68165 Mannheim
12 July 2021: Annual General Meeting 2022 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 26
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