Press Release

H1 Results 2020/2021 (April – September 2020)

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Tereos announces strong results growth for the first half of the year (APRIL – SEPTEMBER 2020)

Half-year EBITDA up 114% to €237 million Net debt decrease of €253 million vs September 2019

Alexis Duval, Chairman of the Management Board of Tereos, declared: « The very positive momentum of Tereos results since 2019 in a European environment which is now deregulated and marked by the Covid-19 pandemic, is the fruit of the success of its anticipation strategy. Tereos’ last twelve months EBITDA reached €546 million as of September 30, 2020, compared to €481 million as of June 30, 2020 and €420 million as of March 31, 2020. Net debt is reduced by €253 million compared to the end of September last year. In recent weeks, Tereos has also finalized a refinancing cycle aiming at extending existing maturities and diversifying its financing sources. With a total of €800 million refinanced, Tereos has increased its financial security. The Group is continuing to deploy its strategy and its transformation plan, in order to benefit in the long term from its strengths in terms of competitiveness, sustainability and expertise in nutritional reformulation. »

Commenting on these results, Jean-Charles Lefebvre, Chairman of Tereos Supervisory Board, declared: « The results published by Tereos demonstrate the quality of its strategy and the work accomplished by its management team to transform Tereos in depth into an agile and more resilient Group while favorably positioning its historic beet business on a newly deregulated market after 50 years of quotas. For the current campaign, the agronomic problems caused by beet yellows virus will result in a very substantial drop in beet yields in France. In the face of this unprecedented viral epidemic on the beet culture, we wish to thank the French government officials as well as our legislators and experts for the measures voted to support the French beet growers. All together we remain very much engaged to develop viable alternative agronomic solutions within the three coming years.

HIGHLIGHTS

✓ Resilient revenues, at €2,050 million (-3% at current exchange rates and +1% at constant exchange rates), demonstrating the flexibility of Tereos and its ability to adapt to the significant disruptions caused by the sanitary crisis. Tereos’ response to the sharp increase in demand for pharmaceutical alcohol and consumer sugars in Europe, the effect of a very good sugarcane campaign in Brazil and the continued recovery in prices in Europe compensated the activity slowdown in markets affected by the sanitary crisis, in particular starch products and ingredients exposed to the beverage and out-of-home food service sectors.

✓ Strong growth of adjusted EBITDA at €237 million (up 141% at constant exchange rates and 114% at current exchange rates). This result is driven by the growth momentum of its Sugar Europe and Renewables Division (€98 million vs -€4 million in H1 19/20), which was well positioned to fully leverage the recovery in sugar and the dynamism of the alcohol market and by its Sugar and Renewables International Division (€98 million vs €76 million in H1 19/20), thanks to a record operational performance and despite an unfavorable translation effect due to the depreciation of the Brazilian real against the Euro.

✓ Strong growth momentum of the Group’s EBITDA at work since the second quarter of 2019, with the Group’s last twelve months EBITDA reaching €546 million (+ 30% vs 31 mars 2020) as of September 30, 2020, compared to €481 million as of June 30, 2020 and €420 million as of March 31, 2020. These results reflect the benefits of the strategic initiatives that Tereos has taken and the good progress of its Ambitions 2022 performance plan (€25 million EBITDA
gains generated over the half-year, reaching €100 million since the beginning of the plan with an overall target of €200 million in 2022).
✓ Group’s net debt, amounted to €2,480 million as of September 30, 2020 (€2,127 million excluding readily marketable inventories), a reduction by €253 million compared to the end of September 2019.

✓ In the current volatile macroeconomic context, Tereos has increased its financial security. As of September 30, 2020, it stood at €1,015 million pro forma of the financing operations announced on October 16. Since March 31, €800 million of new medium- and long-term financing have been put in place in order to proactively manage the Group’s financial profile to anticipate its future maturities and diversify its sources of financing.

✓ On the basis of the available scientific studies and taking into account the absence of flowering of the beet before its harvest, the French National Assembly and Senate voted on October 30 and November 4, 2020 a derogation allowing French growers to use neonicotinoids to protect beet seeds for a period of 3 years. This provision, already applied in many countries in Europe, aims at allowing the needed time to conduct research and develop new methods of combating beet yellows virus.