Our Advance 2025 strategy

This will be achieved by increased investments in key growth areas such as natural food preservation, algae-based ingredients, lactic acid derivatives, and natural polymers. These investments allow Corbion to take advantage of opportunities related to climate change, biodiversity, circularity, and consumer health. We have aligned our Advance 2025 strategy with the United Nations Sustainable Development Goals, specifically SDG 2 (Zero hunger), SDG 3 (Good health and well-being), and SDG 12 (Responsible consumption and production). These are the goals where we believe we can create the most significant impact, given our global footprint, the nature of our business, and the environment in which we operate.

Strategic development update on Advance 2025

In January 2024, Corbion had a Capital Markets Update where, among other announcements, it introduced a simplified organizational structure, consolidating its three business units into two: Functional Ingredients & Solutions and Health & Nutrition. The business units are supported by an integrated supply chain and a centralized R&D structure. Corbion also announced the restructuring involved the divestiture of the non-core Emulsifiers business. This move was part of a broader restructuring program aimed at increasing free cash flow and margins. As a result of this divestment, Corbion's Emulsifiers business will be classified as a discontinued operation in its 2024 Financial statements, and the financial results of the Emulsifiers business will be presented separately from Corbion's continuing operations, providing clearer insight into the company's ongoing performance. These strategic developments aim to enhance Corbion's agility, responsiveness, and success in meeting market demands and driving innovation as a more efficient and focused organization.

Functional Ingredients & Solutions

Our Functional Ingredients & Solutions business unit consists of three businesses: Food, Biochemicals, and Lactic Acid to our PLA joint venture.

Food

Our strategy in the Food business focuses on expanding into high-potential ingredient categories, enhancing operational efficiencies, and optimizing our product mix to drive sustainable growth and profitability. Key opportunities lie in adjacent markets and product categories such as dairy stabilizers, natural antioxidants, natural mold inhibitors, and dough conditioners; solutions that address the increasing demand for clean-label, sustainable ingredients.

The divestment of our Emulsifiers business aligns with our Advance 2025 strategy, enabling us to concentrate on our core competencies in fermentation and functional ingredients. Strategic investments in fermentation capacity and advanced blending capabilities are driving scalable growth globally, further solidifying our position as a leader in natural, functional ingredients and solutions.

Our fully operational vinegar fermentation plant and world-class lactic acid and functional ingredient facilities provide the scale needed to enhance production efficiency and drive margin improvements. Additionally, our global asset footprint, has also been optimized with the addition of a new lactic acid plant in Thailand, the transition of select fermentation production from Peoria (US) to Spain, the establishment of functional ingredient facilities in India, alongside expanded capacities in Mexico. These strategic advancements create a flexible and resilient supply chain enabling us to adapt efficiently to demand fluctuations and cost pressures.

With expertise in natural alternatives, advanced blending capabilities, and tailored application support, we are uniquely positioned to lead in the functional ingredients space. Our targeted, innovative approach allows us to meet the evolving needs of our markets, deliver sustainable value, and strengthen our position as an industry leader.

Biochemicals

In the Biochemical business, we focus on harnessing our fermentation expertise and optimized global infrastructure to fuel scalable growth and profitability. The launch of our new lactic acid plant in Thailand strengthens our supply chain, offering greater flexibility and resilience to adapt to shifting demand and cost pressures. These strategic initiatives enhance our ability to serve rapidly growing markets while delivering innovative solutions. With an expanded fermentation network, we are well-positioned to meet rising demand for lactic acid and its derivatives, catering to a diverse customer base across various biochemical applications.

Lactic Acid to our PLA joint venture

Lactic acid production for the PLA market is a key component of our Functional Ingredients & Solutions strategy. Through our TotalEnergies Corbion 50/50 joint venture, we produce and market Luminy® PLA, unlocking additional value from Corbion's lactic acid platform. This partnership positions us within the PLA value chain, driving the development of innovative, safe, and sustainable polymers for the materials industry. The demand for biobased, biodegradable polymers continues to grow as they offer a lower carbon footprint compared to traditional plastics, aligning with global sustainability goals.

Health & Nutrition

Our Health & Nutrition business unit consists of three businesses: Nutrition (including omega-3), Pharma, and Biomedical Polymers.

Nutrition

Our Nutrition business produces algae-based and fermentation-powered omega sources that deliver high levels of essential nutrients in animal and human diets, such as long-chain omega-3 fatty acids. We aim to help our customers and stakeholders develop sustainable omega-based feed and food solutions by addressing supply challenges, as ocean resources alone cannot meet the growing demand for omega-3 without adverse impacts.

While our focus was primarily centered around omega-3 in aquaculture, our current innovation agenda aims to expand into other higher growth/margin markets such human nutrition, expansion into adjacent territories in pet food, and diversification through the development of new nutrients derived from algae. Meanwhile, we will continue to leverage our backward integrated position at industry-leading scale to reliably supply quality nutrition in a sustainable way.

Our AlgaPrime™ DHA portfolio promotes sustainability and health for companion animals while creating opportunities to add value for the industry. We collaborate with partners to use our AlgaVia™ algae oils to enhance human nutrition and improve diets.

Pharma

Our Pharma business provides quality (active) pharmaceutical ingredients derived from lactic acid. We leverage our backward integrated position and long track-record in quality and reliable supplies to serve global and regional partners in the pharmaceutical industry. Our partners use our ingredients for formulations and medicines targeting renal care, among other applications.

As the number of patients with kidney and other chronic diseases continues to increase globally, and global pharmaceutical supply chains face pressure, customers depend more on our PURASAL® pharma product lines. These products are manufactured in accordance with the strictest current Good Manufacturing Practice guidelines and meet the highest quality standards.

Biomedical Polymers

Our Biomedical Polymers business contributes to a more sustainable and accessible healthcare system. Biomedical Polymers offers quality monomers and polymers. Our backward integrated position and innovation platform allows us to reliably supply safe, sustainable, and biodegradable quality polymers that are applied in an increasing range of medical devices such as orthopedics, wound closure, and controlled drug delivery.

We work with leading medical and (bio)pharmaceutical partners on further advancements in cardiovascular devices, implants, tissue regeneration scaffolds, wound management, and novel drug delivery systems. Our strategy leveraging safe and resorbable polymers aligns well with current trends and opportunities in the healthcare sector while benefitting patients, our partners, and the planet.

Research and development initiatives

The new Innovation Center at Corbion brings together all R&D teams from the business units and Global R&D, Sustainability, IP, and Regulatory Affairs into one cohesive unit. This consolidation aims to facilitate collaboration, leverage synergies, and create clarity on priorities, ultimately increasing effectiveness, knowledge sharing, and output. While application teams remain within the business units due to their strong link with the commercial organization, the Innovation Center is structured around strategic platforms for solution and process innovation.

As a first priority of 2024, Corbion developed and launched a clear Innovation Strategy, which supports the execution of our Advance 2025 strategy and beyond. The Innovation Center is designed with an efficient structure that emphasizes personal and team development, an effective governance model, and a safe and engaging work environment.

Investments over strategic period

Having established a leading global position in lactic acid and lactic acid derivatives, maintaining our differentiated position is a strategic imperative. The demand for lactic acid has led to investments in the expansion of several of our existing lactic acid facilities and the startup of a first-of-its-kind lactic acid plant in Thailand, leveraging our innovative circular production technology. These investments also support the realization of our Climate Mitigation and Transition Plan. Upon completion of this investment phase into lactic acid and derivatives production assets, we are well-invested in lactic acid and focus on new key expansion projects going forward.

Corbion is currently focusing its investments on several key areas to drive future growth and innovation. One major area of investment is in algae ingredients, particularly omega-3 oils. This investment aims to enhance our capabilities in producing sustainable and high-quality omega-3 products for use in aquaculture, pet food, and human nutrition.

Additionally, Corbion is investing in biomedical polymers. This investment supports the development of advanced materials for medical applications, reinforcing our commitment to innovation in the biomedical field.

Another focus area is the development of powder and liquid derivatives for our Functional Ingredients & Solutions business unit. This initiative is designed to expand our product portfolio and meet the growing demand for versatile and functional ingredients in antioxidants, dairy stabilizers, natural mold inhibitors, and dough conditioners—to name a few.

Lastly, Corbion is focused on production insourcing. This investment aims to optimize our production processes and increase efficiency, ensuring we can meet market demands more effectively.

These strategic investments reflect Corbion's commitment to advancing our capabilities and maintaining a competitive edge in the industries we serve.