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Other information

Alternative performance measures (APM)

In this report, Corbion has included certain non-IFRS financial information. This information is presented to assist in making appropriate comparisons with prior periods and to assess the operating performance of the business. Corbion uses these measures to assess the performance of the business and believes that the information is useful to users of the financial information. The non-IFRS financial measures do not have a standardized meaning prescribed by the IASB, therefore may not be comparable to similar measures presented by other issuers.

The table below gives an overview of the alternative performance measures used and their definitions.

APM

Definition

EBITDA

The operating result before depreciation, amortization, and impairment of (in)tangible fixed assets.

Adjusted EBITDA

EBITDA as defined above after applying adjustments.

Adjusted EBITDA margin %

Adjusted EBITDA as defined above divided by net sales x 100.

Adjusted EBITDA excluding acquisitions and divestments, at constant currencies

Adjusted EBITDA as defined above excluding the impact of acquisitions and divestments, based on prior year currency rates.

Covenant EBITDA

Adjusted EBITDA as defined above increased by cash dividend of joint ventures received and annualization effect of newly acquired subsidiaries.

Organic EBITDA growth

Adjusted EBITDA as defined above versus prior year excluding impact of acquisitions and divestments and excluding currency impact.

Organic sales growth

Sales versus prior year excluding impact of acquisitions and divestments and excluding currency impact.

Adjusted operating result

Operating result after adjustments.

Adjusted result after taxes

Result after taxes after adjustments.

Interest cover

Covenant EBITDA as defined above divided by net interest income and charges.

Net debt position

Interest-bearing debts and lease liabilities less cash and cash equivalents, including third-party guarantees which are required to be included under the debt covenants.

Capital employed

The sum of equity, non-current liabilities, interest-bearing current liabilities, and lease liabilities minus cash and cash equivalents.

Average capital employed

Average of the quarterly average capital employed in the reporting period.

Market capitalization

Number of ordinary shares with dividend rights multiplied by the share price at period end.

Free cash flow

Cash flow from operating activities plus cash flow from investment activities.

Return on capital employed (ROCE)

Adjusted operating result as defined above, including results from joint ventures and associates, divided by the average capital employed x 100.

Adjustments

Adjustments relate to material items in the income statement of such size, nature, or incidence that, in the opinion of management, require disclosure. These items include amongst others write-downs of inventories to net realizable value, reversals of write-downs, impairments, reversals of impairments, additions to and releases from provisions for restructuring and reorganization, results on assets sold, gains on the sale of subsidiaries, joint ventures and associates, and any other provision being formed or released. The company only makes adjustments for items when the aggregate amount of the events per line item of the income statement exceeds a threshold of € 0.5 million.

The table below gives a selection of the APMs used versus the most directly comparable IFRS measure.

€ million

2019

2018

Operating result

61.3

87.9

Depreciation, amortization, and impairments

103.0

41.6

EBITDA

164.3

129.5

Adjustments to EBITDA

  

- Past-service gain due to change in indexation CSM UK pension scheme

-7.9

 

- Restructuring costs

2.9

0.3

- Acquisition costs

0.7

0.4

- One-off bonuses

1.0

 

- Onerous contract provisions

 

0.6

- Legal fees

0.5

 

- Incidental write-down of inventory

2.6

0.6

- Profit on sale of land

 

-0.6

- Valuation of tax assets

-3.5

 

- Remeasurement contingent purchase price SB SB Renewable Oils

-14.7

 

- Remeasurement contingent sales price Total Corbion PLA

 

0.8

Total adjustments to EBITDA

-18.4

2.1

Adjusted EBITDA

145.9

131.6

   

Operating result

61.3

87.9

Adjustments to operating result

  

- Adjustments to EBITDA

-18.4

2.1

- Impairments

42.1

 

- Reversal of previous recorded impairment

 

-0.4

Total adjustments to operating result

23.7

1.7

Adjusted operating result

85.0

89.6

   

Net result

25.8

54.3

Adjustments to result after taxes

  

- Total adjustments to operating result

23.7

1.7

- Gain fair value remeasurement SB Oils

 

-9.6

- Loss related to write-down inventory SB Oils

 

2.8

- Tax effects on above adjustments

-3.5

-0.1

Total adjustments to result after taxes

20.2

-5.2

Adjusted result after taxes

46.0

49.1

   

Cash flow from operating activities

114.4

99.5

Cash flow from investment activities

-104.8

-87.6

Free cash flow

9.6

11.9

   

Equity

529.1

520.2

Borrowings

282.8

249.2

Lease liabilities

66.2

1.2

Other non-current liabilities

24.1

26.9

-/- Cash and cash equivalents

-45.7

-47.1

Capital employed

856.5

750.4

   

Borrowings

282.8

249.2

Lease liabilities

66.2

1.2

-/- Cash and cash equivalents

-45.7

-47.1

Net debt position

303.3

203.3