Other information
Alternative performance measures
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 Corbion uses these measures to assess the operating 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, and therefore may not be comparable to similar measures presented by other issuers. The table below lists the alternative performance measures (APMs) used and their definitions.
APM | Definition |
EBITDA | The operating result before depreciation, amortization, and (reversal of) 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, borrowings, lease liabilities, and other non-current 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 profit as defined above, including adjusted operating profit 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 | 2023 | 2022 |
Operating result | 117.2 | 110.8 |
Depreciation, amortization, and impairments | 62.9 | 76.4 |
EBITDA | 180.1 | 187.2 |
Adjustments to EBITDA | ||
- Remeasurement contingent purchase price SB Renewable Oils | 5.2 | 2.3 |
- Acquisition costs | 0.5 | 0.7 |
- Reversal of accruals presented as adjustments in previous periods | -0.8 | |
- Exceptional write down of a receivable | 0.6 | |
- Restructuring costs | 0.6 | |
- Environmental fine in one of our production sites | 0.6 | |
- Advice costs | 0.4 | |
- Cost related to the planned sale of the Emulsifier business | 4.6 | |
- Sale of Totowa warehouse | -9.7 | |
- Incremental cost as a result of the production outage in our Blair facility | 1.7 | |
- Strategic portfolio optimization Algae and LAS business | 1.3 | |
- Write down receivables as a result of the conflict in Ukraine | 0.7 | |
- Sale of a plot of land in the Dutch municipality of Breda | 0.2 | |
Total adjustments to EBITDA | 11.7 | -2.8 |
Adjusted EBITDA | 191.8 | 184.4 |
Adjusted EBITDA | 191.8 | 184.4 |
Cash dividend of joint ventures and associates | 4.6 | 14.3 |
Covenant EBITDA | 196.4 | 198.7 |
Adjusted EBITDA (A) | 191.8 | 184.4 |
Net sales (B) | 1,443.8 | 1,457.9 |
Adjusted EBITDA margin (A/B) | 13.3% | 12.6% |
Operating result | 117.2 | 110.8 |
Adjustments to operating result | ||
- Adjustments to EBITDA | 11.7 | -2.8 |
- Reversal of impairments | -21.7 | |
Total adjustments to operating result | -10.0 | -2.8 |
Adjusted operating result | 107.2 | 108.0 |
Net result | 72.9 | 90.0 |
Adjustments to result after taxes | ||
- Total adjustments to operating result | -10.0 | -2.8 |
- Impairment in our PLA joint venture | 6.8 | |
- Tax effects on adjustments | -1.6 | 1.5 |
Total adjustments to result after taxes | -4.8 | -1.3 |
Adjusted result after taxes | 68.1 | 88.7 |
Cash flow from operating activities | 165.4 | 39.0 |
Cash flow from investment activities | -146.8 | -199.1 |
Free cash flow | 18.6 | -160.1 |
Equity | 636.2 | 625.7 |
Borrowings | 720.6 | 685.7 |
Lease liabilities | 64.9 | 73.5 |
Other non-current liabilities | 13.3 | 15.8 |
-/- Cash and cash equivalents | -70.2 | -58.2 |
Capital employed 31/12 | 1,364.8 | 1,342.5 |
Capital employed end Q4 prior year (A) | 1,342.5 | 1,032.0 |
Capital employed end Q1 (B) | 1,411.3 | 1,162.4 |
Capital employed end Q2 (C) | 1,404.7 | 1,223.6 |
Capital employed end Q3 (D) | 1,439.2 | 1,365.7 |
Capital employed end Q4 current year (E) | 1,364.8 | 1,342.5 |
Average capital employed for the year ((A+B)/2+(B+C)/2+(C+D)/2+(D+E)/2)/4) | 1,402.2 | 1,234.7 |
Adjusted operating result | 107.2 | 108.0 |
Adjusted operating result from joint ventures and associates | 6.5 | 18.0 |
Adjusted operating result basis for ROCE (A) | 113.7 | 126.0 |
Average capital employed for the year (B) | 1,402.2 | 1,234.7 |
Return on capital employed (A/B) * | 8.1% | 10.2% |
Borrowings | 720.6 | 685.7 |
Lease liabilities | 64.9 | 73.5 |
-/- Cash and cash equivalents | -70.2 | -58.2 |
Total net debt position | 715.3 | 701.0 |
Borrowings | 720.6 | 685.7 |
Lease liabilities | 64.9 | 73.5 |
-/- Subordinated loan | -99.6 | -99.5 |
-/- Cash and cash equivalents | -70.2 | -58.2 |
Covenant net debt position | 615.7 | 601.5 |
Covenant net debt position (A) | 615.7 | 601.5 |
Covenant EBITDA (B) | 196.4 | 198.7 |
Covenant net debt position/covenant EBITDA (A/B) | 3.1 | 3.0 |
Interest income (Note 7 consolidated financial statements) | -6.4 | -3.4 |
Interest expenses (Note 7 consolidated financial statements) | 28.7 | 14.8 |
Interest expense on lease liabilities (Note 7 consolidated financial statements) | 2.5 | 2.6 |
Net interest financial income and charges | 24.8 | 14.0 |
Covenant EBITDA (A) | 196.4 | 198.7 |
Net interest financial income and charges (B) | 24.8 | 14.0 |
Interest cover (A/B) | 7.9 | 14.2 |
Adjusted EBITDA | 191.8 | 184.4 |
Impact acquisitions and divestments | 0.6 | |
Currency impact | 11.6 | -24.8 |
Adjusted EBITDA excluding acquisitions and divestments, at constant currencies | 203.4 | 160.2 |
Adjusted EBITDA prior year (A) | 184.4 | 135.8 |
Adjusted EBITDA excluding acquisitions and divestments, at constant currencies current year (B) | 203.4 | 160.2 |
Organic EBITDA growth ((B-A)/A)*100% | 10.3% | 18.0% |
TotalEnergies Corbion bv | ||
Adjusted operating result | 13.0 | 36.0 |
Depreciation, amortization, and impairments | 6.3 | 6.8 |
EBITDA | 19.3 | 42.8 |
* Starting 2023, the ROCE calculation has changed. The change was initiated to reflect the same pre-tax numerator basis for Corbion and joint ventures result, being adjusted operating profit. In previous periods, the Corbion share in annualized adjusted net result of joint ventures was included. Starting 2023, the Corbion share in annualized adjusted operating profit of joint ventures is included. Comparative figures have been adjusted to reflect this change.
For organic sales growth reconciliation, reference is made to page 27.