Slide 1: FY 2022 Results
FY 2022 RESULTS OLIVIER RIGAUD (CEO) 03/03/2023 EDDY VAN RHEDE VAN DER KLOOT (CFO)
Slide 2: Corbion results FY 2022
FY 2022 RESULTS Corbion results FY 2022 Olivier Rigaud Eddy van Rhede van der Kloot CEO CFO • Business performance • Financial performance • Outlook 03/03/2023
Slide 3: We champion preservation in all its forms
OUR PURPOSE We champion preservation in all its forms Portfolio aligned to SDGs Our sustainable New circular lactic We help preserve acid technology food ingredients > 8 million tons of with a 19% lower help control food- food globally carbon footprint borne pathogens. Resorbable Bioplastics AlgaPri
Slide 4: FY 2022 Key Points (I)
FY 2022 RESULTS FY 2022 Key Points (I) • All key financial metrics within earlier provided guidance • Organic sales growth core activities 24.3% • Growth driven by all three business units • Volume/Mix +5.6% and Price +18.7% • Adjusted EBITDA: €184.4M (12.6% margin) • Organic growth +17.9% • Covenan
Slide 5: FY 2022 Key Points (II)
FY 2022 RESULTS FY 2022 Key Points (II) • Significant progress in delivering “Advance 2025” – confident of delivering updated initiatives and targets • Sustainability progress ahead of schedule – Corbion Science Based Targets commitment increased to 1.5°C • Successfully implemented price increases t
Slide 6: Business developments
FY 2022 RESULTS Business developments Sustainable Food Solutions • Preservation: • Launch of new natural antioxidant platform • Functional Systems: • Focus on shelf-life extension, food ferments and reformulations driven by raw material shortages • Supporting customer recipes reformulations driven b
Slide 7: Corbion raises commitment to 1.5°C
FY 2022 RESULTS Corbion raises commitment to 1.5°C, the most ambitious goal of the Paris Agreement SBTi was launched in 2015 by CDP, UN Global Compact, World Resources Institute and WWF. SBTi helps companies to set credible carbon reduction targets in line with climate science. • Corbion joined in 2
Slide 8: Good progress on Sustainability in 2022
FY 2022 RESULTS Good progress on Sustainability in 2022 20C 1.5°C % of net revenue sales Absolute CO2 Products Products Verified Total contributing reduction covered by covered by responsibly Renewable Recordable to SDG 2, 3 scope I&II Life Cycle Social Value sourced cane electricity Injury Rate and
Slide 9: Financial performance
FY 2022 RESULTS Financial performance 03/03/2023
Slide 10: Profit and Loss
FY 2022 RESULTS Profit and Loss YTD YTD Q4 Q4 € million 2022 2021 % 2022 2021 % Net Sales 1,457.9 1,070.8 36.2% 377.5 273.2 38.2% Adjusted EBITDA 184.4 135.8 35.8% 41.6 22.3 86.5% Adjusted EBITDA % 12.6% 12.7% 11.0% 8.2% Adjusted Depreciation & Amortization (76.4) (64.1) 19.2% (20.5) (17.2) 19.2% Ad
Slide 11: Sustainable Food Solutions
FY 2022 RESULTS Sustainable Food Solutions € million YTD 2022 YTD 2021 Q4 2022 Q4 2021 • Net sales organic growth of 21.5%, of which volume/mix +3.6% Net sales 780.0 584.2 200.9 148.6 • Preservation Organic growth 21.5% 10.8% 23.3% 3.1% • Stable volume growth after strong market share gains in 2020/
Slide 12: Lactic Acid & Specialties
FY 2022 RESULTS Lactic Acid & Specialties € million YTD 2022 YTD 2021 Q4 2022 Q4 2021 • Net sales organic growth of 20.4%, of which volume/mix 0.0% Net sales 400.1 312.3 99.5 80.2 • Continued strong growth in medical biopolymers Organic growth 20.4% 17.0% 18.0% 25.0% • Lactic Acid to PLA: volume dec
Slide 13: Algae Ingredients
FY 2022 RESULTS Algae Ingredients € million YTD 2022 YTD 2021 Q4 2022 Q4 2021 • Net sales organic growth of 115.3%, of which volume/mix 98.4%. Net sales 74.3 30.7 26.1 7.8 • Sales growth driven by AlgaPrime DHA (omega-3) Organic growth 115.3% 147.8% 197.4% 68.9% • Adoption of AlgaPrime DHA (omega-3)
Slide 14: Incubator
FY 2022 RESULTS Incubator • Adjusted EBITDA loss increased from € -3.3 million to € -9.2 million • No sales generated by Incubator following carve out of Algae Ingredients. • Incubator Programs include (as outlined in the recent CMD): • Algae portfolio expansion • Biopolymers • Natural preservation
Slide 15: TotalEnergies Corbion joint venture
FY 2022 RESULTS TotalEnergies Corbion joint venture € million * YTD 2022 YTD 2021 Q4 2022 Q4 2021 • Net sales growth of 3.8%, organic decline of -7.6% Net sales 165.8 159.8 35.0 47.2 • Lower sales in H2’22 due to Chinese lock down and elevated EBITDA 42.8 54.6 2.2 14.9 freight costs. EBITDA margin 2
Slide 16: Non-core activities
FY 2022 RESULTS Non-core activities € million YTD 2022 YTD 2021 Q4 2022 Q4 2021 • Net sales organic growth of 26.1% in Emulsifiers Net s ales 203.5 143.6 51.0 36.6 • Fully driven by price improvements following higher raw Organic growth 26.1% 12.8% 24.0% 12.9% material prices Adjus ted EBITDA 34.3 1
Slide 17: Funding ratio recovering as expected
FY 2022 RESULTS Funding ratio (1) recovering as expected Divestment process non-core activities initiated • Outlook funding ratio is excluding positive impact divestment 03/03/2023 (1) Covenant net debt/covenant EBITDA
Slide 18: Outlook 2023
FY 2022 RESULTS Outlook 2023 • Volume/mix organic growth core activities 5-8% • SFS: growth rates expected to be skewed to H2’23 driven by phasing of expansion plans • LA&S: growth rates in H1 impacted by lower sales to TotalEnergies Corbion PLA • Algae Ingredients: continued growth in acquaculture
Slide 19: Annex
FY 2022 RESULTS Annex 03/03/2023
Slide 20: Net sales and Adjusted EBITDA: FY/Q4 2022
FY 2022 RESULTS Net sales and Adjusted EBITDA: FY/Q4 2022 € million YTD 2022 YTD 2021 Q4 2022 Q4 2021 YTD Growth Net sales Core 1,254.4 927.2 326.5 236.6 35.3% - Sustainable Food Solutions 780.0 584.2 200.9 148.6 33.5% - Lactic Acid & Specialties 400.1 312.3 99.5 80.2 28.1% - Algae Ingredients 74.3
Slide 21: Sales growth per segment in FY/Q4 2022
FY 2022 RESULTS Sales growth per segment in FY/Q4 2022 Acquisitions/ Net sales Volume/Mix Price Organic Currency Total growth (Divestments) YTD 2022 vs YTD 2021 Core 5.6% 18.7% 24.3% 10.9% 0.1% 35.3% - Sustainable Food Solutions 3.6% 17.9% 21.5% 11.8% 0.2% 33.5% - Lactic Acid & Specialties 0.0% 20.4
Slide 22: Core Adjusted EBITDA bridge FY 2022
FY 2022 RESULTS Core Adjusted EBITDA bridge FY 2022 FTE increase costs, 10.8M Other, 15.0M 03/03/2023
Slide 23: Core Adjusted EBITDA bridge Q4 2022
FY 2022 RESULTS Core Adjusted EBITDA bridge Q4 2022 FTE increase costs, 2.3M Other, 7.2M 03/03/2023
Slide 24: Covenant Net debt bridge 2022
FY 2022 RESULTS Covenant Net debt bridge 2022 • Covenant net debt/covenant EBITDA increased from 2.6x to 3.0x (reduction versus H1’22) • covenant net debt/covenant EBITDA is 3.75x 361.6 601.5 03/03/2023
Slide 25: Investments
FY 2022 RESULTS Investments • Total investments 2022: € 231M • New lactic acid plant (Thailand) € 104M • Recurring capex € 127M (including other expansion projects) • Recurring capex includes • Lactic acid expansion € 32M • Natural ferments US € 11M • Algae fermentation Brazil € 10M • ERP investment
Slide 26: Free Cash Flow
FY 2022 RESULTS Free Cash Flow 150 Rolling 12 months • FCF 2022: € - 160M 100 50 120 100 105 114 107 109 97 • Significant investment program to support 26 32 31 5 12 10 22 25 39 growth 0 -1 -65 • New lactic acid plant in Thailand € mln -88 -80 -77 -50 -114 -106 -105 -119 -177 -100 -97 -199 • Operati
Slide 27: Working capital (days)
FY 2022 RESULTS Working capital (days) • Increased Inventory days mainly caused by inflationary input costs and safety stock build up • Debtor and Payable days stable • Stable Debtor aging profile 03/03/2023 DSO: (Trade Receivable/3Mth Sales)x90 ; DIO: (Inventory/3 Mth COGS)x90; DPO: (Trade Payables
Slide 28: Restatements (I) – Sales growth composition
FY 2022 RESULTS Restatements (I) – Sales growth composition Q1 Q2 Q3 Q4 FY22 • Organic Sales growth going forward to be split in: Price Sustainable Food Solutions 11.6% 17.9% 21.8% 19.7% 17.9% • Price Lactic Acid & Specialties 15.6% 20.8% 20.8% 23.9% 20.4% • Volume/mix Algae Ingredients 9.6% 12.1% 1
Slide 29: Restatements (II) – new allocation of G&A costs
FY 2022 RESULTS Restatements (II) – new allocation of G&A costs over the various business units € million FY21 Q1 Q2 Q3 Q4 FY22 EBITDA - New Segmentation (after updated cost allocation) Sustainable Food Solutions 75.1 22.2 28.3 28.7 16.7 95.9 Lactic Acid & Specialties 56.7 17.0 18.2 14.0 17.5 66.7 A
Slide 30: Investor relations
Investor relations Peter.Kazius@corbion.com www.corbion.com +31 6 55409706