Advance 2025 Amsterdam Stock Exchange: CRBN

On its capital markets day for analysts and investors in Amsterdam today, Corbion management will present its strategy for the period 2020-2025: Advance 2025. As our portfolio is only aligned with market trends Global, the strategy builds on the fundamentals and strengths of Corbions by bringing more focus to the business portfolio. This will be achieved through increased investments in key growth areas such as natural food preservation and lactic acid, while reducing the breadth of our business portfolio. With our goal of defending conservation in all its forms: preserving food and food production, health and the planet, sustainability will become even more important in all our decision-making processes.

Olivier Rigaud, CEO of Corbion, comments: In recent years, Corbion has built a solid foundation. This strategy builds on these foundations in an evolutionary way.

In the food sector, Corbion has moved more and more from an ingredients activity to a solutions activity. We plan to expand this model of solutions with the preservation of natural foods and functional systems as our core capabilities, allowing us to accelerate growth in narrow adjacencies.

In our lactic acid activity, we aim to capitalize on our market and our technological leadership. To further strengthen this leading position in an attractive growing market, we have decided to build a new lactic acid plant on the existing Corbion site in the province of Rayong in Thailand. While PLA is developing better than expected, the urgency behind the expansion of our lactic acid production capacity has only increased.

In our incubator, where we are developing initiatives at an early stage, we plan to make omega-3 DHAs profitable in 2022, while remaining determined to invest in longer-term initiatives.

Some 17% of our total sales will be classified as non-essential. For several non-essential activities such as our frozen dough activity and our FDCA initiative, we will look for exit scenarios. For others, like our emulsifying activity, we will manage for value. By putting more emphasis on the portfolio, we believe we can accelerate the growth of the business.

At Corbion, sustainability is at the heart of what we do. We are very well positioned to benefit from the global drive for more sustainable products and solutions. We have aligned our Advance 2025 strategy with the United Nations Sustainable Development Goals (SDGs) with SDG 2 Zero hunger, SDG 3 Good health and well-beingand SDG 12 Responsible consumption and production being the goals where Corbion can have the most impact.

Our commercial and hierarchical structure will now include three operational units:

Sustainable food solutions: supported by an industry that is rapidly evolving towards clean / natural food solutions, we will take advantage of our conservation advantages. Sustainable food solutions will include three segments: preservation, functional systems and unique ingredients. In the conservation segment, we intend to extend our (natural) meat preservation solutions to other markets. In the functional systems segment, we will focus on natural / clean label solutions in bakery and other markets. Both segments could be supported by complementary mergers and acquisitions. Emulsifiers will have a decreasing strategic adjustment in the future and will be managed for their value. Other non-essential activities such as co-packaging mixing and frozen dough will be discontinued.

Lactic acid and specialties: We will capitalize on our global leadership in lactic acid and lactic acid derivatives. Corbion is the market leader in lactic acid in terms of technology, production capacity, geographic coverage and portfolio size. Lactic acid and specialties will include 5 segments: lactic acid (including for PLA), lactates, lactate esters, biopolymers and others. Lactic acid serving the PLA market is already driving substantial investments in our lactic acid infrastructure. By 2023, we plan to open a new 125 kTpa lactic acid plant in Thailand, operating to the highest sustainability standards and the lowest costs. The additional lactic acid capacity also demonstrates our commitment to continue supporting the future growth of the Total Corbion PLA joint venture.

Incubator: we will develop larger and early stage investments in the incubator. Our three main product categories are: algae-based omega-3s, starting with fish feed applications, algae proteins (in cooperation with Nestl) and our new platform of copolymer. This platform is a controlled release copolymer technology based on lactic acid, expanding our expertise in (medical) polymer.

We will continue to invest> 4% of our sales in R&D to support our growth. Over the next few years, R&D resources will be intensified in sustainable food solutions and lactic acid and specialties. In addition to the Omega-3 initiative, annual EBITDA investments for other initiatives in the incubator are expected to be between 0.5% and 1.5% of basic net sales.

Financial orientation 2020-2025

Financial objectives 2020-2025 (for main activities)

• Organic annual net sales growth 4-7%
• EBITDA margin> 17% from 2025 (2019: 15.1%)

Underlying ambitions

• Organic growth in net sales Sustainable Food Solutions ~ 3%
• Net organic growth in sales Lactic acid and specialties ~ 7%
• EBITDA from Omega-3 DHA activities based on algae in 2022
• EBITDA investments of other Incubator initiatives: up to ~ 0.5-1.5% of Corbion's core sales
• Capex: Recurring Capex of 60-70 million per year. Additional average investments in 2020-2022: 55 million per year for a new lactic acid plant in Thailand
• Net debt / EBITDA: the target is 2.0x over the cycle. Estimated to peak ~ 2.5x during the construction period of the new lactic acid plant (2020-2023)
• Dividend per share: progressive dividend @ 0.56 / share (to be reviewed annually; subject to market outlook, financial situation, significant additional investments, mergers and acquisitions and divestments)

Financial orientation 2020 (for main activities)

• Organic growth in net sales in a range of 4 to 7%
• EBITDA margin should be stable compared to fiscal year 2019 at ~ 15%

• 20200309 Corbion PR CMD2020 final ENG