Corbion Nv · EURONEXT:CRBN
Corbion Nv — Investor Day (December 2022)
69 slides from Corbion Nv's investor day presentation, Dec 1, 2022
Slide 1: Advance 2025 Update - Capital Markets Day 2022
ADVANCE 2025 UPDATE Capital Markets Day 2022
Slide 2: Disclaimer
CAPITAL MARKETS DAY 2022 Disclaimer No representation or warranty is made as to the truth or accuracy of any data, information or opinions contained herein or as to their suitability for any purpose, condition or application. None of the data, information or opinions herein may be relied upon for an
Slide 3: Today's objectives
CAPITAL MARKETS DAY 2022 Today’s objectives • Advance 2025 update • Growth opportunities and strategic approach • Financial outlook • Meet our team 3 12/01/22
Slide 4: Agenda
Agenda 10:00 – 10:05 Introduction 10:05 – 10:50 Olivier Rigaud 10:50 – 11:20 Eddy van Rhede van der Kloot 11.20 – 11.45 Q&A Board of Management 11.45 – 12.30 Lunch 12.30 – 14.00 Carousel (4 x 20 mins) 14.00 – 14.50 Q&A Executive Committee 14.50 – 15.00 CEO Round-up 4 12/01/22
Slide 5: Today's presentation team
CAPITAL MARKETS DAY 2022 Today’s presentation team Olivier Rigaud CEO Corbion Eddy van Rhede van der Kloot CFO Corbion 5 12/01/22
Slide 6: Carousels
Carousels Sustainable Food Solutions Andy Muller Olivier Rigaud David Charest Jennifer Lindsey President SFS CEO SVP Business Industry SFS CMDO Lactic Acid & Specialties Marco Bootz Eddy van Rhede Thomas Philipon President LAS van der Kloot CEO TotalEnergies 6 29/04/2022 CFO Corbion
Slide 7: Carousels
Carousels Algae Ingredients Ruud Peerbooms Aurélie Dalbiez Tim Rutten President AI CHRO Sr. Dr. Commerce AI Innovation Marcel Wubbolts Jacqueline van Diana Visser Menno Lammers CSSO Lemmen Sr. Dr Sustainability VP Biomaterials 7 29/04/2022 COO
Slide 8: Strategy Update
STRATEGY UPDATE OLIVIER RIGAUD
Slide 9: Our purpose
Our purpose. Preserve what mattere
Slide 10: 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 11: Corbion at a glance
CORBION AT A GLANCE Global biobased ingredients provider with unique technology platform Key figures (2021) €1.1BN NET SALES CORE 3% net sales 34% 63% €136M SFS LA & S Incubator Adjusted EBITDA NET SALES PER REGION 18% 2,493 20% 8% 54% • • • Largest producer of lactic acid with global footprint Lead
Slide 12: Fermentation powerhouse - our key production technology
CORBION CORE COMPETENCES Fermentation powerhouse - our key production technology Natural preservation blends Lactates Natural ferments Vinegar Over a Lactate Lactic acid century of esters Algae Omega-3 expertise ingredients Lactides PLA Fermentation expertise 12 12/01/22
Slide 13: Corbion ecosystem built around fermentation
CORBION CORE COMPETENCES Corbion ecosystem built around fermentation Food Integrated Fermentation Enzyme formulation preservation Predictive sustainability expertise capabilities expertise modeling approach + Functional Applied Microbiology Industrial Polymerization blending science scale up experti
Slide 14: Advance 2025 Update
CMD PRESENTATION 2022 Advance 2025 Update
Slide 15: Key highlights
ADVANCE 2025 UPDATE Key highlights Significant progress made in delivering ‘Advance 2025’ Increase net sales growth target ’23-’25 to 5-8% p.a. (up from 4-7%)* Adjusted EBITDA growth target ’23-’25 of 15-20% p.a.* Divestment process non-core emulsifiers business initiated Creation of Algae Ingredien
Slide 16: Good progress made on Advance 2025 Strategic Plan
ADVANCE 2025 UPDATE Good progress made on Advance 2025 Strategic Plan Sales growth Invested in Corbion Successfully Divestment accelerated organization and capacity navigated COVID-19, process non- supply chain core ‘manage Sales Bolt-on Started Upgraded constraints, and for value’ EBITDA constructi
Slide 17: Raising the bar in sustainability
ADVANCE 2025 UPDATE SUSTAINABILITY HIGHLIGHTS Raising the bar in sustainability 20C0C 1.5 % of revenue Absolute CO2 Products Products Verified Total contributing reduction covered by covered by responsibility Renewable Recordable to SDG 2, 3 scope I&II Life Cycle Social Value sourced cane electricit
Slide 18: Key drivers of value creation going forward
ADVANCE 2025 UPDATE Key drivers of value creation going forward SUSTAINABLE LACTIC ACID ALGAE FOOD SOLUTIONS & SPECIALTIES INGREDIENTS INCUBATOR Global supplier of food Global leader in lactic Global supplier of Early stage initiatives ingredient solutions for acid and its derivative algae-based ing
Slide 19: Sustainable Food Solutions
CMD PRESENTATION 2022 Sustainable Food Solutions
Slide 20: Sustainable Food Solutions at a glance
AT A GLANCE Sustainable Food Solutions Global supplier of food Single 63% Functional Ingredients ingredient solutions for the world’s leading €584M* Systems net sales 14% food manufacturers of core portfolio • Natural portfolio replacing synthetic 44% ingredients with natural alternatives • Keeping
Slide 21: Outperforming market growth while investing in new areas
SUSTAINABLE FOOD SOLUTIONS – ADVANCE 2025 SO FAR Outperforming market growth while investing in new areas Sales Sales growth CAGR +13% Outperforming competition 25% Sales • Market share gain in Bakery and Meat 20% 15% Ambition CMD 2020 10% Investments for growth • New innovation centers 5% • Strengt
Slide 22: Market drivers, size & growth
SUSTAINABLE FOOD SOLUTIONS - MARKET DRIVERS, SIZE & GROWTH Natural food preservation and functional systems growing 2x market rate Corbion uniquely positioned to play in this space Total addressable market Functional systems Market share: 15% €8.5BN Food preservation Market share: 25% Functional sys
Slide 23: Differentiated core competencies and solution-based approach driving growth
SUSTAINABLE FOOD SOLUTIONS - ADDED VALUE Differentiated core competencies and solution-based approach driving growth Fermentation expertise Breadth natural Enzyme formulation Dedicated technical Predictive modelling preservation portfolio capabilities service organization Deep application Functional
Slide 24: Superior natural solutions for preservation and increased shelf-life
SUSTAINABLE FOOD SOLUTIONS Superior natural solutions for preservation and increased shelf-life Unmatched Via tailor made Delivering key Different portfolio solutions using functionalities food markets core competences Lactic acid Bakery Lactates Food Meat Natural mold inhibitors safety Natural Natu
Slide 25: Stepping into exciting markets
SUSTAINABLE FOOD SOLUTIONS - ADVANCE 2025 WHAT’S AHEAD Stepping into exciting markets Higher growth profile ~5% pa SFS sales Leverage existing capabilities and investments > €1BN in 2030 Geographical expansion in Europe and South-East Asia Value creation opportunities - adjacencies Antioxidants Natu
Slide 26: Game changing natural mold inhibitors
SUSTAINABLE FOOD SOLUTIONS Game changing natural mold inhibitors Combination of various Corbion's proprietary ferments Aligned to consumer market trends for authentic natural ingredients Sustainable reduction of food waste Leveraging Corbion’s core competencies Bread Strategic partnership with key g
Slide 27: Lactic acid & Specialties
CMD PRESENTATION 2022 Lactic acid & Specialties
Slide 28: Lactic Acid & Specialties at a glance
AT A GLANCE Lactic Acid & Specialties Global leader in lactic acid and its derivative solutions covering biochemicals, medical €312M* net sales 34% of core portfolio 12% 9% biopolymers, and 47% bioplastics applications 14% • Leading market growth through active business development 18% • Product st
Slide 29: Expanding lactic acid capacity to drive our growth ambition
LACTIC ACID & SPECIALTIES - ADVANCE 2025 SO FAR Expanding lactic acid capacity to drive our growth ambition Sales growth Sales 25% CAGR 20% Ambition CMD 2020 +15% Expanded lactic acid capacity 15% • Lactic acid debottlenecking program 80KTon 10% • Construction circular lactic acid plant in progress
Slide 30: Product portfolio well positioned in attractive growth markets
LACTIC ACID & SPECIALTIES - MARKET DRIVERS, SIZE & GROWTH Product portfolio well positioned in attractive growth markets LACTIC ACID MEDICAL DERIVATIVES IN TO PLA BIOPOLYMERS NICHE APPLICATIONS Addressable market Addressable market Addressable market €2.0BN > €0.5BN €0.4BN Market growth +15%* Market
Slide 31: Global market leader in lactic acid and derivatives
LACTIC ACID & SPECIALTIES - ADDED VALUE Global market leader in lactic acid and derivatives with unparalleled product portfolio Fermentation expertise Breadth portfolio Cost competitiveness Polymerization expertise € Global reach & scale Highest quality & Sustainable (biobased & reliability biodegra
Slide 32: Flagship circular lactic acid plant commissioning in 2023
LACTIC ACID & SPECIALTIES - ADVANCE 2025 WHAT’S AHEAD Flagship circular lactic acid plant Lowest cost commissioning in 2023 technology available Cost per ton Corbion circular plant Competitors Corbion 125kt plant located in Thailand 19% lower carbon Lowest carbon footprint* emissions process 32 12/0
Slide 33: Capacity expansion to meet demand
LACTIC ACID & SPECIALTIES € Investment decision Capacity expansion to meet demand Commissioning Estimated investment Estimated commissioning decision PLA2 plant in Grandpuits PLA2 plant Grandpuits EBITDA Contribution PLA € Construction PLA2 $50~70M* Estimated commissioning Estimated investment Thai
Slide 34: Strong performance 5 years after start-up
PLA - TOTALENERGIES CORBION Strong performance 5 years after start-up Sales Sales Average market growth over last 5 year 15% 2025 300 $225~255M 250 Sales Achieved market share 25% growth 200 ~15% pa 160* 150 129* Growth opportunities ahead EBITDA 100 2025 76* $50~70M Partnership with TotalEnergies
Slide 35: Continue to expand application horizons
PLA - TOTALENERGIES CORBION Continue to expand application horizons S – ADVANCE 2025 WHAT’S AHEAD From product to application play • Leveraging TotalEnergies application centers • Non-woven, 3D printing, durable goods End-of-life options • Recyclability • Home compostability Circular raw materials
Slide 36: PLA market >800 kT in 2030
PLA - TOTALENERGIES CORBION PLA market >800 kT in 2030 Non-woven and 3D-printing highest growth markets PLA the most promising biopolymer and key building block for growth of biodegradable applications with PBAT, PBS and PHA Sustainable pricing premium: non-woven, 3D-printing, durable goods and aut
Slide 37: Our medical biopolymers sweet spot
LACTIC ACID & SPECIALTIES – ADVANCE 2025 WHAT’S AHEAD Our medical biopolymers sweet spot High functionality derivatives, highly differentiated, strong margins Drug delivery • Controlled release of active ingredients (API) • Highly effective drug delivery Orthopedic • Resorbable devices • No repeated
Slide 38: Algae Ingredients
CMD PRESENTATION 2022 Algae Ingredients
Slide 39: Algae Ingredients at a glance
AT A GLANCE Algae Ingredients Global supplier of algae- based ingredients providing nutritional benefits for human and €31M* net sales 3% of core portfolio 10% animal diets • Unleashing the power of algae fermentation to provide nutritional ingredients such as omega-3 • Reducing pressure on the worl
Slide 40: Foundation for the future being built, positive EBITDA as of June 2022
ALGAE INGREDIENTS - ADVANCE 2025 SO FAR Foundation for the future being built, positive EBITDA as of June 2022 Omega-3 from niche to mainstream ingredient in aquaculture industry Sales Sales 80 €70~75M Superior R&D delivery higher 70 yielding algae strain 60 50 Commercial organization 40 31 and cust
Slide 41: Demand omega-3 is outpacing supply
ALGAE INGREDIENTS - MARKET DEVELOPMENTS Demand omega-3 is outpacing supply, algae omega-3 key enabler in closing the demand-supply gap Fish oil supply stagnant Growing omega-3 demand Supply of omega-3 by fish oil being stagnant New technologies required to address this gap 41 12/01/22
Slide 42: Corbion well positioned to be a leading algae omega-3 player
ALGAE INGREDIENTS - MARKET SIZE & GROWTH Corbion well positioned to be a leading algae omega-3 player 2022 2030 Omega-3 Omega-3 market market €4.8BN €3.3BN Algae omega-3 €1.5BN Algae omega-3 €0.5BN Corbion Corbion €0.3-0.5BN €0.1BN 42 12/01/22 Data based on Corbion competitor intelligence
Slide 43: Combining unique R&D expertise and commercial skills
ALGAE INGREDIENTS - ADDED VALUE Combining our unique R&D expertise and commercial skills to deliver affordable solutions at scale Fermentation Proprietary production Scale-up capabilities expertise method € Organism library Low carbon technology Cost/price (>9.000 strains) competitiveness 43 12/01/2
Slide 44: Major customer adoption showing algae omega-3 becoming mainstream in aquaculture
ALGAE INGREDIENTS Major customer adoption showing algae omega-3 becoming mainstream in aquaculture Source: Microalgae no longer considered Source: Cargill to use algal oil in all a niche ingredient in BioMar | BioMar Norway fish feed - FishFarmingExpert.com 44 12/01/22
Slide 45: Value creation: sustainable sales growth at above average Corbion margin
ALGAE INGREDIENTS - ADVANCE 2025 WHAT’S AHEAD Value creation: sustainable sales growth at above average Corbion margin Sales Sales & EBITDA 2025 Continued growth in aquaculture €140M 160 140 CAGR +25% Growth opportunities in higher margin omega-3 120 markets • Pet food 100 • Human nutrition 80 60 EB
Slide 46: Leveraging our portfolio of algae strains
ALGAE INGREDIENTS - ADVANCE 2025 WHAT’S AHEAD Leveraging our portfolio of algae strains to address larger and more profitable markets Starting ’23-’25 Growth opportunities in omega-3 markets Infant nutrition Human nutrition Margin Pet food Aquaculture Omega-3 Algae oils Protein Anti-oxidants Beyond
Slide 47: Incubator
CMD PRESENTATION 2022 Incubator
Slide 48: Proven concept of incubator investments
INCUBATOR Proven concept of incubator investments 2017 PLA In-house R&D 2020 Acquisitions Circular lactic acid technology Partnerships 2022 Algae ECBF omega-3 ? HatchBlue Shift ? 48 12/01/22
Slide 49: Continued disciplined approach on long-term innovations
INCUBATOR Continued disciplined approach on long-term innovations Algae portfolio Circular raw Biopolymers Natural preservation Net zero extension materials Time to 3-10 yr 5-10 yr 3-5 yr 10+ yr 5-10 yr commercialization Product type Protein, lipids Copolymer Novel antimicrobials Feedstock flexibili
Slide 50: Strongly positioned for the future
CAPITAL MARKETS DAY 2022 Strongly positioned for the future Significant progress made in delivering Advance 2025 Increased net sales growth target ’23-’25 to 5-8% p.a. and Adjusted EBITDA growth to 15-20% p.a. Divestment process non-core emulsifiers business initiated Creation of Algae Ingredients a
Slide 51: Financial Update
FINANCIAL UPDATE EDDY VAN RHEDE VAN DER KLOOT 12/01/2022
Slide 52: Sales growth accelerated during early years of Advance 2025
ADVANCE 2025: FIRST 3 YEARS Sales growth accelerated during early years of Advance 2025 Organic net sales growth (1) Net sales in €m Price growth 25% 1200 20% 1000 15% Volume/Mix growth 10% ø = 8.0% 11.9% 800 5% 6.6% 5.6% ø = 2.1% 0% 2014 2015 2016 2017 2018 2019 2020 2021 2022 YTD Q3 600 -5% 2014 2
Slide 53: Core Adjusted EBITDA growing at stable underlying margin
ADVANCE 2025: FIRST 3 YEARS Core Adjusted EBITDA growing at stable underlying margin Adjusted EBITDA margin and EBITDA core activities (1) Adjusted EBITDA (RHS) 24% Underlying margin(2) 20% 160 16% 12% €m 155 130 8% Adjusted EBITDA 4% 122 margin as reported 0% 100 2019 2020 2021 2021 2022 2022(1) (1
Slide 54: Past performance against Advance 2025
ADVANCE 2025: FIRST 3 YEARS Past performance against Advance 2025 Financial targets 2020 - 2022 outcome Core activities Organic Net sales growth 4 - 7% 15.1%(2) Core activities EBITDA margin >17% from 2025 - Underlying ambitions Sustainable Food Solutions Organic sales growth ~3% 12.8%(2) Lactic Aci
Slide 55: Strong track record high-return investments
ADVANCE 2025: FIRST 3 YEARS Strong track record high-return investments Thailand lactic Lactate esters Omega-3 PLA acid expansion expansion Project type Acquisition Project type Greenfield Project type Expansion Project type Expansion Investment size € 150M(3) Investment size $ 155M Investment size
Slide 56: Pathway to €250 million Core Adjusted EBITDA by 2025
OUTLOOK 2022 - 2025 Pathway to € 250 million Core Adjusted EBITDA by 2025(1) Adjusted EBITDA improvements 2022E - 2025 Cost reduction Innovation Business growth (€ 80M) initiatives (€ 20M) (€ -5M) Excluding Cost reduction Cost benefit Optimized and Volume Volume Increase in 50% of PLA JV at full uti
Slide 57: Priorities for capital allocation
OUTLOOK 2022 - 2025 Priorities for capital allocation 1 2 3 4 Capital Excess Cash Dividend M&A Expenditure Returns Stable to Share buy-back gradually 67% growth Bolt-on and/or special increasing investments acquisitions dividend absolute dividend Mid-term covenant net debt/covenant EBITDA 1.5 – 2.5x
Slide 58: Investing for future growth
OUTLOOK 2022 - 2025 Investing for future growth Key expansion projects 2023 – 2025 Cumulative capex: €475M (2023 - 2025) Sustainable Food Solutions (€ 125M) • Powder derivatives • Liquid derivatives • Natural ferments phase #2 Lactic Acid & Specialties (€ 85M) • Medical biopolymers expansion • Pharm
Slide 59: Funding ratio actively managed down
OUTLOOK 2022 - 2025 Funding ratio(1) actively managed down Covenant net debt/covenant EBITDA 4 Divestment process non-core activities initiated • Outlook funding ratio is excluding positive impact divestment 3 Debt structure • Duration 4.9 years (as per 3Q22) • Avg. interest rate at 2.2% (as per 3Q2
Slide 60: New group segmentation
OUTLOOK 2022 - 2025 New group segmentation Core Non-core Algae Ingredients: New business unit Manage for Growth Manage for Value Manage for Exit • Preservation • Frozen dough Divestment non-core SUSTAINABLE FOOD SOLUTIONS • Functional systems • Co-packing blending emulsifiers business initiated • Si
Slide 61: Guidance
OUTLOOK 2022 - 2025 Guidance Financial targets CMD 2020 New (‘23-’25) Core Organic net sales growth(1) 4 - 7% p.a. 5 - 8% p.a. Core Organic Adjusted EBITDA growth - 15-20% p.a. Underlying ambitions Sustainable Food Solutions Organic sales growth(1) ~3% ~5% Lactic Acid & Specialties Organic sales gro
Slide 62: Strongly positioned for the future
CAPITAL MARKETS DAY 2022 Strongly positioned for the future Significant progress made in delivering Advance 2025 Increased net sales growth target ’23-’25 to 5-8% p.a. and Adjusted EBITDA growth to 15-20% p.a.* Divestment process non-core emulsifiers business initiated Creation of Algae Ingredients
Slide 63: Putting our strategy into action
CAROUSEL Putting our strategy into action SUSTAINABLE LACTIC ACID & ALGAE FOOD SOLUTIONS SPECIALTIES INGREDIENTS INNOVATION 63 12/01/22
Slide 64: Sustainable Food Solutions: global science, local taste
———————————EE~* Sustainable Food Solutions 9loba/ science, local tacte Preserve what matters >) Through service, we meet customer needs > NATURAL 4g Ad MOLD INHIBITION . Baking equipment Water/inputs Regulations, Local taste Application Corbion technology gives ) Significant market potential \ d\ IS
Slide 65: Algae preserves what matters
OO $$ Algae preserves what matters Revolutionary omega-3 sourcing from algae Microalgae a F ae P= 6) Zooplankton Fermentation process ian © footprint y compared to fish oil Production: scale, sourcing & sustainability 1 What’s next? > — Closing the 9-3 gap f 3 — 4 wef] : a wf Sl @corbion AlgaPrime™
Slide 66: Polylactic acid (PLA) preserves what matters
On $$ Polylactic acid (PLA) preserves what matters Luminy® PLA bioplastics enable the circular economy PLA “Oo are intensifying \ ‘<< © - A 5BN€ _ BIOPLASTICS ; EE o6Bne PLA Packaging @ 3 printing Fibers «=«O-2BNE |= TO, 75% LESS | 2-3X LESS (CO, USAGE THAN CONVENTIONAL PLASTICS LAND USE THAN OTHER
Slide 67: Net zero preserves what matters
—————E Net zero preserves what matfers ter po crops Current lactic acid production process ae New circular plant 2023 rera-carnon 609kg C0, 230kg00, t . -224 ve ~ -760 00, por tontaticacd 0, per ton act cid utes t vee a — I] —— psi] — E #— Si]— ws — were ad agg Rent tert |) = oe Lime production New
Slide 68: Biomaterials preserve what matters
Biomaterials preserve what mattere Resorbable medical devices . From implants to injectables Contraception Mental health \ Opioid use disorder Controlled-release drug delivery Plasma drug concentration — Pil @ laid Corbion Regenerative Malaria Maximum i Q medicine desired level @& 7 ry Teal Dat (RS)
Slide 69: 12/1/2022
12/1/2022 69