Corbion (OTCPK:CSNV.Y) 2025 Capital Markets Day Transcript

Corbion Capital Markets Day Summary Company Overview - Company: Corbion (OTCPK:CSNV.Y) - Event: 2025 Capital Markets Day - Date: November 20, 2025 - Key Focus: Transition from Advance 2025 to Bright 2030 strategic plan Key Achievements and Financial Performance - Advance 2025 Achievements: - Margin expansion from 13% to 16% [1] - 10 consecutive quarters of positive free cash flow [1] - Top-line CAGR of 9% and EBITDA growth of 8% [2] - Specialty food and green business volume mix grew by 4% [1] - Bright 2030 Goals: - Targeting 3%-6% annual top-line sales growth for 2026-2028 [2] - Adjusted EBITDA margin goal of 18% [2] - Cumulative free cash flow target of EUR 270 million [2] Strategic Focus Areas - Natural Preservation and Nutrition: - Emphasis on clean label and natural ingredients due to consumer demand [3][4] - Regulatory pressures favoring sustainable food solutions [4] - Focus on functional foods due to aging population and health awareness [4] - Market Dynamics: - Addressable market for food preservation is nearly $3.5 billion, with a combined opportunity of $7 billion when including shelf life extension [6] - Nutrition market, including omega-3s, is also valued at nearly $7 billion, growing at 2%-6% per annum [7] Innovation and Technology - Fermentation Technology: - Unique ability to scale from lab to industrial production [9] - New lactic acid plant in Thailand enhances sustainability and cost efficiency [10][16] - Circular manufacturing process reduces carbon footprint [13] - Product Portfolio: - Focus on natural antimicrobials, antioxidants, and acidification solutions [27][28] - Successful replacement of synthetic ingredients with natural alternatives [30] Sustainability Commitment - Climate Goals: - Aim for net-zero emissions across the value chain by 2050 [21] - 99% of raw materials are verified deforestation-free [21] - Natural preservation solutions help prevent over 10 million tons of food waste annually [19] Financial Outlook - Medium-Term Financial Targets: - Organic sales growth of 3%-6% per annum [51] - Adjusted EBITDA margin improvement to around 18% by 2028 [51] - Cumulative free cash flow of around EUR 270 million over the next three years [51] - Capital Allocation: - Balanced approach focusing on organic growth and shareholder returns [58] - Anticipated CapEx around 6% of sales [62] Conclusion - Corbion is well-positioned to capitalize on market trends towards natural ingredients and sustainability, with a strong focus on innovation and operational efficiency. The Bright 2030 strategy aims to enhance growth and profitability while maintaining a commitment to environmental responsibility and consumer health.