4. Segment information

In line with the management responsibilities and internal management reporting for its strategic decision-making process Corbion distinguishes between the segments Sustainable Food Solutions, Lactic Acid & Specialties, Algae Ingredients, and Incubator (together Core), and Non-core.

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.

Algae Ingredients is a new segment (being carved out from the Incubator into its own reporting segment) recognizing the growth potential of this business and as a result of reaching EBITDA break-even in algae-based omega-3 DHA in June 2022 (before reallocation of G&A costs). By leveraging expertise in large-scale industrial fermentation, we anticipate significant further growth and profitability as a global supplier of algae ingredients providing nutritional benefits for human and animal diets.

In our Incubator, where we develop early-stage initiatives, we work on five selected platforms: Algae portfolio extension, Biopolymers, Natural preservation, Circular raw materials, and Net zero. These long-term platforms are all linked to one of the three business units and embedded in their innovation programs.

Non-core activities comprise emulsifiers which have a declining strategic fit. 

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

• 1 Includes Sustainable Food Solutions, Lactic Acid & Specialties, Algae Ingredients, and Incubator.
• 2 Comparative figures have been adjusted after the carve out of Algae from the Incubator segment.

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.

Segment information by geographical region

The above sales information is based on the location of the customer. 

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.

At year end 2022, Corbion had a total number of employees (FTEs) of 2.601, of which 643 in the Netherlands, 200 in the rest of Europe, 897 in North America, 526 in Latin America and 335 in Asia. At year end 2021, Corbion had a total number of employees (FTEs) of 2.493, of which 628 in the Netherlands, 182 in the rest of Europe, 878 in North America, 496 in Latin America and 309 in Asia.