GELATIN & AKIOLIS Because every bio-molecule counts Pol Deturck EVP Chemicals & Organic Specialties
Why our bioplatform is promising Dual service provider and highly reliable partner Akiolis, the 3 rd largest European renderer, is an excellent base for international growth and for development in premium downstream markets # 3 gelatin producer in the world, present in both established and growth markets Focus on innovation will accelerate sustainable growth and enhance market position Strong financial performance 2
Gelatin & Akiolis ANSWERING THE MEGA-CHALLENGES 3
The Challenge There will be an end to the fossil fuel-based economy the new economy will be a knowledge-based bio-economy
The Opportunity Increased standards of living results in growing meat consumption and protein demand need for higher quality and functional foods, pet foods, niche fertilizers and bio-energy sources
The Solution Our bio-platform up-cycles proteins and fats from animal by-products and other bio-residuals into high value applications
Gelatin & Akiolis HOW GELATIN & AKIOLIS ARE SEIZING OPPORTUNITIES 7
Gelatin & Akiolis value chain Collecting natural derivatives, mainly animal co-products, and extracting high value-added proteins and fats Gelatin & Akiolis Up-stream Collection Valorization Down-stream ACTIVITY Slaughterhouses Supermarkets Breeders Restaurants Gathering of natural derivatives using network of collection sites and fleet of dedicated trucks Incineration of animals for private and public contracts Production of proteins and fats for downstream industries Multinational food companies Agriculture Energy Oleo-chemistry RELEVANT PRODUCTS Animal by-products (e.g., feathers, blood, leather, bones, intestines) Other organic by-products (e.g., bakery products, used cooking oils, cheese) Main products Gelatin Processed Animal Protein Fats Niche products, e.g., Compost Used cooking oil (UCO) Food Pharma Pet food Fertilizers Animal feed incl. aquaculture Biodiesel Cosmetics 8 8
INGREDIENTS SECTOR Akiolis footprint Animal by-products: Category 3 (low risk) 9 processing plants 13 collection and transfer centers ENVIRONMENTAL SECTOR Animal by-products: Category 1 & 2 (high & medium risk) 4 processing plants 25 collection and transfer centers DEVELOPMENT SECTOR Combustible oils KEY FIGURES # 2 player on the French market # 3 player on the EU market 14 treatment plants of animal by-products 40 collecting centers ~550 trucks 1200 employees FOOD PICK-UP & RECUPERATION Cereal co-products METHANIZATION (partner) Fermentable waste 9 Source: Akiolis
Akiolis market characterization Projected total consumption of meat and dairy products 1600 Bovine meat Ovine meat Pig meat 1400 1200 1000 800 Poultry meat Dairy not butter 600 400 200 0 1/01/2010 1/01/2020 1/01/2030 1/01/2040 1/01/2050 Source: FAO 2011 10
Akiolis market characterization Products & applications Downstream valorisation Food & Feed Oleo Chemistry Renewable Energies Food, aqua & animal feed, pet food & treats Soaps, detergents, cosmetics and lubricants Methyl esters for biofuel. Also used as an ecological energy source in green power plants or used directly in AKIOLIS boilers to generate heat Market price (EUR/T) Fertilizer Enrichment of soil, formulating fertilizers Fertilizer Aquaculture & pet food 11
Gelatin footprint Heilongjiang Davenport Pingyang Acorizal Treforest Santa Fe Nienburg Vilvoorde The world s # 3 gelatin and hydrolysate producer with a total production capacity of 45,000 metric ton and a full porcine and bovine assortment 12
Gelatin market characterization Products & applications End markets and growth Edible Hydrolysed Pharmaceutical Photographic Confectionary, soft drinks, meat processing, bakery, wine, beer, fish processing, dairy products, cold soluble gelatin Stabiliser, emulsifier, taste enhancer, dietetic food, salt reducer, flocculating agent, protein enrichment, adhesives Soft capsules, hard capsules, haemostatic sponges, tabletting, gelatin suppositories, blood plasma substitutes, vitamin encapsulation X-ray film, color film, graphic film, black and color photo papers Food Capsule Source: PB Gelatin Marketing Estimates Regional demand Other Asia 15% Latin America 8% Europe 36% China 17% North America 24% Source: PB Gelatin Marketing Estimates
Bio-residual market presents attractive opportunities By-products of meat and other bio-residuals growing globally High-end downstream applications (gelatin, pet food, aquaculture, biofuels, etc.) grow by approx. 4% per year with double-digit growth in the BRIC countries Functional food markets continue to grow in the West and emerge in the East (hydrolysates) Multinational groups (food, pet food, pharma, ) seeking innovative cooperation The downstream integration of Akiolis into Gelatin and others allows us to capture a significant part of the value in the animal protein chain 14
Solid growth profile 341.8 358.5 410.8 61.2 61.9 61.2 475.4 66.4 Million Eur Revenue REBITDA REBITDA Margin 2008 2009 2010 2011 17.9% 17.3% 14.9% 14.0%
Gelatin & Akiolis STRATEGY 16
Gelatin & Akiolis strategy Long-term growth and sustainability Expand in top-of-range downstream market Ensure growth in targeted regions/countries Diversify and enlarge organic by-products portfolio Ensure structures & resources to support strategic initiatives Achieve best-in-class customer service and operational excellence in current markets 17
Gelatin & Akiolis HIGHLIGHTS 18
Highlights Gelatin & Akiolis Gelatin & Akiolis will help to create a sustainable knowledge-based bio-economy Strong service position in collection in the growing bio-residuals markets Further technology development opportunities Enhancing downstream presence via innovation Stronger focus on delivering best-in-class customer service and operational excellence Strategy execution will result in considerable additional value creation 19
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Gelatin & Akiolis THANK YOU Pol Deturck EVP Chemicals & Organic Specialties 21