Slide 1: TerraVia Acquisition
TERRAVIA ACQUISITION TJERK DE RUITER (CEO), EDDY VAN 16/9/2017 RHEDE VAN DER KLOOT (CFO)
Slide 2: TerraVia: a new growth platform for Corbion
TerraVia: a new growth platform for Corbion • TerraVia’s microalgae platform will significantly expand Corbion’s portfolio with fats and oils • Corbion can leverage fermentation skillset to improve TerraVia’s economics • Expansion of Corbion’s R&D capabilities • TerraVia is expected to provide a sig
Slide 3: Strategic fit: TerraVia with Corbion
Strategic fit: TerraVia with Corbion TerraVia Corbion brings brings • World class fermentation-based microalgae production • World class industrial-scale, fermentation-based, organic platform and product portfolio covered by extensive acid production and down stream processing expertise, patent esta
Slide 4: Current TerraVia has a broad algae-based product portfolio
Current TerraVia has a broad algae-based product portfolio... Omega-3 DHA New source of DHA addresses major algae biomass supply gap in aquaculture Specialty fatty High purity fatty acids as additional acids supply source besides palm Functional fats and Tailored triglycerides for e.g. bakery fats o
Slide 5: First product to commercialization: AlgaPrime DHA
First product to commercialization: AlgaPrime DHA • Fish production: aquaculture production closing in on capture production • Available fish oil supply is limited at ~1,000 kTpa • …so aquaculture farmers have been reducing fish oil content at expense of Omega-3 fatty acids (EPA+DHA) levels in salmo
Slide 6: World class algae development and production platform
World class algae development and production platform Peoria, Illinois – demo plant San Francisco, CA –R&D lab/pilot plant • Commissioned in 2012 • $45M invested in fixed assets R&D: world class algae development platform • San Francisco based lab and pilot plant Moema, Brazil 50/50 JV with • World
Slide 7: Production process
Production process • Raw materials and closed-tank fermentation process very similar to Corbion’s • Multiple purpose production plants for algae-based products 7 © 9/29/2017
Slide 8: Algae-based products have unmatched sustainability profile
Algae-based products have unmatched sustainability profile >250 8 © 9/29/2017
Slide 9: Financial key points – P&L impact (1/2)
Financial key points – P&L impact (1/2) • High value creation potential for Corbion, with ROCE at maturity and post-tax IRR far exceeding 15% • Sales and EBITDA potential of acquired asset base • SB Oils JV Moema plant: Net sales potential of US$ 150-250M (@100%) • Peoria demo plant: Net sales poten
Slide 10: Financial key points – P&L impact (2/2)
Financial key points – P&L impact (2/2) • Acquisition is expected to provide a new growth platform and to enhance Corbion’s pro- forma1 sales growth profile by more than 100 bps per annum • Operating expense (S,G&A and R&D) : >50% reduction in 2018 compared to TerraVia reported 2016 levels2 (US$ 74.
Slide 11: Financial key points – funding and balance sheet impact
Financial key points – funding and balance sheet impact • The acquisition will be financed by cash from existing credit facilities. • The total expected funding required to develop the acquired business goes beyond the initial purchase price and comprises the following main components: • Purchase Pr
Slide 12: Corbion's priorities for TerraVia
Corbion’s priorities for TerraVia • Accelerate product commercialization • AlgaPrime DHA for Animal Nutrition • AlgaVia specialty lipids and protein in Bakery and Food and Beverage • Reduce operating expenses • Optimize production assets by applying Corbion’s fermentation capabilities • Review R&D p
Slide 13: Corbion
Corbion