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4. Segment information

Following the strategy update in March 2020, Corbion made an updated assessment of its reportable segments. In line with the revised management responsibilities and internal management reporting for its strategic decision-making process Corbion now distinguishes between the segments Sustainable Food Solutions, Lactid Acid & Specialties and Incubator (together "Core"), and Non-core. As a result of the strategy update, prior-year segmentation has been restated.

In Sustainable Food Solutions, Corbion has evolved increasingly from an ingredients business into a solutions business. We plan to expand on this solutions model with natural food preservation and functional systems as our core capabilities, enabling us to accelerate growth in close adjacencies.

In our Lactic Acid & Specialties business, we aim to capitalize on our market and technology leadership in lactic acid and lactic acid derivatives. Corbion leads the lactic acid market in technology, production capacity, geographic coverage, and breadth of portfolio.

In our Incubator, where we develop early-stage initiatives, we plan to bring omega-3 DHA to profitability in 2022, while staying committed to investing in initiatives with a longer time horizon. Our three main product categories are: algae-based omega-3 ( starting with fish feed applications), algae proteins (in cooperation with Nestlé), and our new co-polymer platform. This platform is a lactic acid-based controlled-release co-polymer technology, expanding on our (medical) polymer expertise.

Non-core activities comprise emulsifiers which will have a declining strategic fit going forward and will be managed for value. Other non-core activities include co-packing blending and frozen dough which will be exited.

Transfer prices between operating segments are on an arm’s length basis in a manner similar to transactions with third parties.

Segment information by business area

 

Sustainable Food Solutions

Lactic Acid & Specialties

Incubator

Core 1

Non-core

Corbion total operations

 

2020

2019

2020

2019

2020

2019

2020

2019

2020

2019

2020

2019

Income statement information

            

Net sales

545.8

529.4

275.8

263.8

13.4

13.3

835.0

806.5

151.5

169.9

986.5

976.4

Operating result

59.8

62.0

59.6

43.6

-24.3

-57.8

95.1

47.8

9.0

13.5

104.1

61.3

Adjustments to operating result

1.2

-0.4

-12.8

-0.2

1.0

23.3

-10.6

22.7

5.0

1.0

-5.6

23.7

Adjusted operating result

61.0

61.6

46.8

43.4

-23.3

-34.5

84.5

70.5

14.0

14.5

98.5

85.0

             

Alternative non-IFRS performance measures

            

EBITDA

92.4

89.9

74.2

56.9

-19.4

-6.2

147.2

140.6

18.5

23.7

165.7

164.3

Adjustments to EBITDA

0.3

-0.8

-13.2

-0.2

1.0

-18.1

-11.9

-19.1

5.0

0.7

-6.9

-18.4

Adjusted EBITDA

92.7

89.1

61.0

56.7

-18.4

-24.3

135.3

121.5

23.5

24.4

158.8

145.9

             

Ratios alternative non-IFRS performance measures

            

EBITDA margin %

16.9

17.0

26.9

21.6

-144.8

-46.6

17.6

17.4

12.2

13.9

16.8

16.8

Adjusted EBITDA margin %

17.0

16.8

22.1

21.5

-137.3

-182.7

16.2

15.1

15.5

14.4

16.1

14.9

  • 1 Includes Sustainable Food Solutions, Lactic Acid & Specialties, and Incubator

Corbion generates almost all of its revenues from the sale of goods.

Information on the use of alternative non-IFRS performance measures

In the above table and elsewhere in the financial statements a number of non-IFRS performance measures are presented. Management is of the opinion that these so-called alternative performance measures might be useful for the readers of these financial statements. Corbion management uses these performance measures to make financial, operational, and strategic decisions and evaluate performance of the segments. The alternative performance measures can be calculated as follows:

  • EBITDA is the operating result before depreciation, amortization, and impairment of (in)tangible fixed assets.

  • EBITDA margin is EBITDA divided by net sales x 100.

  • For a full overview of alternative performance measures used by Corbion, reference is made to the 'Other Information' section.

Segment information by geographical region

 

Net sales

2020

2019

The Netherlands

22.0

21.5

Rest of EMEA

171.1

164.0

US

478.5

486.2

Rest of North America

67.4

60.6

Latin America

76.7

78.1

Asia

170.8

166.0

Corbion total operations

986.5

976.4

The above sales information is based on the location of the end customer. We are of the opinion that this provides the most relevant information for the readers of the financial statements. In previous years, the sales information was based on the location of the selling entities. Prior-year information has been restated.

 

Non-current assets

2020

2019

The Netherlands

192.4

175.2

Rest of EMEA

23.4

23.1

US

218.5

248.1

Rest of North America

0.2

0.1

Brazil

67.8

91.3

Thailand

83.9

82.8

Rest of Asia

1.3

1.9

Corbion total operations

587.5

622.5

The above information is based on the geographical location of the assets. Non-current assets exclude those relating to financial instruments, deferred tax assets, and post-employment benefit assets.