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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 lists 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 and/ or divested 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.

Covenant net debt position

Borrowings (excluding subordinated loans) and lease liabilities less cash and cash equivalents, including third-party guarantees which are required to be included under the debt covenants.

Total net debt position

Borrowings 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.

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 significant items in the income statement of such size, nature or incidence that in view of management require disclosure to assist in making appropriate comparisons with prior periods and to assess the operating performance of the business. These items include amongst others write-down 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. Restructuring costs are defined as the estimated costs of initiated reorganizations, which have been approved by the Executive Committee, and which generally involve the realignment of certain parts of the organization. The company only adjusts for items when the aggregate amount of the events per line item of the income statement exceeds a yearly threshold of € 0.5 million as well as adjustments, each above € 0.1 million, in relation to previously recognized adjustments.

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

€ million

2021

2020

Operating result

82.0

104.1

Depreciation, amortization, and impairments

89.4

61.6

EBITDA

171.4

165.7

Adjustments to EBITDA

  

- Sale of a plot of land in the Dutch municipality of Breda

-18.4

 

- Sale of Frozen Dough activities

-11.3

 

- Recognition of VAT receivable positions in Brazil

-6.1

 

- Release of milestones as a result of impairment on the Fiberlive development

-5.0

 

- Remeasurement of the purchase price of the subsidiary Total Corbion PLA (Thailand) Limited

 

-12.9

- Insurance proceeds

-2.9

-1.0

- Incremental cost as a result of the production outage in our Blair facility

2.9

 

- Settlement tax claim US

1.3

 

- Incidental write-down of inventory

 

4.9

- Restructuring costs

0.8

1.3

- Demolition costs

0.6

 

- Advice costs

0.5

0.8

- Acquisition costs

0.9

 

- Litigation claims

0.9

 

- Remeasurement contingent purchase price SB Renewable Oils

0.2

 

Total adjustments to EBITDA

-35.6

-6.9

Adjusted EBITDA

135.8

158.8

   

Adjusted EBITDA

135.8

158.8

Cash dividend of joint ventures and associates

4.3

4.4

Annualization effect of newly acquired subsidiaries

0.3

 

Covenant EBITDA

140.4

163.2

   

Adjusted EBITDA (A)

135.8

158.8

Net sales (B)

1,070.8

986.5

Adjusted EBITDA margin (A/B)

12.7%

16.1%

   

Operating result

82.0

104.1

Adjustments to operating result

  

- Adjustments to EBITDA

-35.6

-6.9

- Impairments

25.3

1.3

Total adjustments to operating result

-10.3

-5.6

Adjusted operating result

71.7

98.5

   

Net result

78.3

73.1

Adjustments to result after taxes

  

- Total adjustments to operating result

-10.3

-5.6

- Remeasurement of the purchase price of the subsidiary Total Corbion PLA (Thailand) Limited in PLA JV

 

6.0

- Litigation proceeds in joint ventures

-0.2

 

- Provision for US tax claim

-0.5

5.5

- Tax effects on adjustments

-7.6

-2.1

Total adjustments to result after taxes

-18.6

3.8

Adjusted result after taxes

59.7

76.9

   

Cash flow from operating activities

22.4

109.0

Cash flow from investment activities

-119.4

-76.9

Free cash flow

-97.0

32.1

   

Equity

554.1

516.0

Borrowings

433.8

281.9

Lease liabilities

69.4

53.9

Other non-current liabilities

16.9

18.5

-/- Cash and cash equivalents

-42.2

-51.6

Capital employed 31/12

1,032.0

818.7

   

Capital employed end Q4 prior year (A)

818.7

856.5

Capital employed end Q1 (B)

891.3

855.4

Capital employed end Q2 (C)

923.1

826.7

Capital employed end Q3 (D)

1,003.4

847.3

Capital employed end Q4 current year (E)

1,032.0

818.7

Average capital employed for the year ((A+B)/2+(B+C)/2+(C+D)/2+(D+E)/2)/4)

935.8

841.8

   

Adjusted operating result

71.7

98.5

Adjusted result from joint ventures and associates

18.5

10.5

Adjusted operating result basis for ROCE (A)

90.2

109.0

Average capital employed for the year (B)

935.8

841.8

Return on capital employed (A/B)

9.6%

12.9%

   

Borrowings

433.8

281.9

Lease liabilities

69.4

53.9

-/- Cash and cash equivalents

-42.2

-51.6

Total net debt position

461.0

284.2

   

Borrowings

433.8

281.9

Lease liabilities

69.4

53.9

-/- Subordinated loan

-99.4

 

-/- Cash and cash equivalents

-42.2

-51.6

Covenant net debt position

361.6

284.2

   

Senior net debt position (A)

361.6

284.2

Covenant EBITDA (B)

140.4

163.2

Covenant net debt position/covenant EBITDA (A/B)

2.6

1.7

   

Interest income (Note 7 consolidated financial statements)

-1.9

-2.6

Interest expenses (Note 7 consolidated financial statements)

9.3

10.1

Interest expense on lease liabilities (Note 7 consolidated financial statements)

2.2

2.4

Net interest financial income and charges

9.6

9.9

   

Covenant EBITDA (A)

140.4

163.2

Net interest financial income and charges (B)

9.6

9.9

Interest cover (A/B)

14.6

16.5

   

Adjusted EBITDA

135.8

158.8

Impact acquisitions and divestments

4.6

1.3

Currency impact

6.3

5.4

Adjusted EBITDA excluding acquisitions and divestments, at constant currencies

146.7

165.5

   

Adjusted EBITDA prior year (A)

158.8

145.9

Adjusted EBITDA excluding acquisitions and divestments, at constant currencies current year (B)

146.7

165.5

Organic EBITDA growth ((B-A)/A)*100%

-7.6%

13.4%

   
   

Total Corbion PLA BV

  

Operating result

47.8

42.0

Depreciation, amortization, and impairments

6.8

5.7

EBITDA

54.6

47.7

For organic sales growth reconciliation, reference is made to page 23.