Corbion N.V. — Earnings Release 2009

Oct 28, 2009

CSM nv Corporate Communications

P.O. Box 349 1000 AH Amsterdam The Netherlands

Nienoord 13 1112 XE Diemen

T +31 (0)20 590 62 16 F +31 (0)20 590 62 17 E communications@csm.nl

Press Release

CSM Q3 2009 TRADING UPDATE

Diemen, the Netherlands, October 28, 2009

CSM substantially improved Q3 EBITA compared to last year. The increase was the result of more stable sales volumes in combination with a recovery in margins and strict expense control.

Key facts

• Sales for the third quarter were € 634.5 million compared with € 639.5 million in 2008; organic growth was 2.2% negative due to a limited reduction in sales volume and slightly lower average pricing. Currency effects had a positive impact of € 9 million due to the stronger US dollar.
• EBITA before exceptional items in the third quarter amounted to € 47.6 million, up € 20.8 million (78%) compared with the same period in 2008. The main contributors to the recovery of our margins were the current raw material contracts, cost savings as well as continuing improvements at H.C. Brill and our German Bakery operation. Currency effects positively impacted EBITA by € 1.9 million.

Key figures

Quarter 3			Year-to-date Q3
2009	2008	x € million	2009	2008
634.5	639.5	Net sales	1,918.2	1,886.7
47.6	26.8	EBITA before exceptional items	108.3	95.6
-	-2.4	Exceptional items		-12.8
47.6	24.4	EBITA *	108.3	82.8
7.5%	4.2%	ROS before exceptional items (in %)	5.6%	5.1%

* EBITA: operating result before amortization of intangible fixed assets.

Commenting on the third quarter results, Gerard Hoetmer, CEO of CSM, said:

I am proud that in line with our forecast, we have delivered clearly improved EBITA results in Q3 versus Q3 of last year. The strong improvement of € 20.8 million shows that our organization has successfully adapted to the recessionary environment that started to severely impact our business around July of last year. Today, despite the continuing pressure in our markets, we see a trend of stabilization in volumes sold. The continued investments in our organization in the areas of marketing and innovation are gradually starting to pay off, further strengthening our market position. This quarter's development in raw material prices was less volatile than in previous periods. This allowed us to recover margins. However, continued attention will have to be paid to our procurement positions and selling prices especially as the first signs of raw material price increases are seen.

During the recession we have continued our strategic investments and focus on improving our innovation and marketing capabilities. This quarter we have seen the clear benefits of two major innovation efforts at PURAC. First we have announced a cooperation with BASF, one of the most reputable chemical companies, in jointly developing the production of bio-based succinic acid. This cooperation clearly confirms our position as an expert in fermentation technology, especially in the field of bio-plastics. Secondly we have developed a process which in a new plant will make it possible to eliminate a number of steps in the lactid acid production. The advantages of this improved process will be a reduced use of chemicals, the avoidance of producing substantial amounts of byproducts such as gypsum, and consequently creating a very positive effect on the carbon/CO² footprint.

For the fourth quarter we remain cautious for the volume outlook. As Q4 is the most important quarter for our bakery activities, the behavior of consumers in this holiday season is going to be very decisive for our results in this quarter. Average raw material prices have started to increase again, especially due to the increase in sugar prices. The impact in the fourth quarter however, will be limited due to forward purchasing contracts in place.

On balance we estimate our Q4 EBITA to improve over Q4 of last year. For the total year we expect to improve our EBITA with 10-15% compared to last year.

Business developments

Bakery Supplies

Quarter 3		x € million	Year-to-date Q3
2009	2008		2009	2008
542.1	557.1	Net sales	1,650.6	1,641.7
39.1	25.5	EBITA before exceptional items	103.0	84.8
-	-2.2	Exceptional items	-	-13.6
39.1	23.3	EBITA	103.0	71.2
7.2%	4.6%	ROS before exceptional items (in %)	6.2%	5.2%

• Bakery Supplies North America

Quarter 3		x \$ million	Year-to-date Q3
2009	2008		2009	2008
411.8	432.7	Net sales	1,219.1	1,278.5
38.3	23.0	EBITA before exceptional items	99.3	71.6
-	-0.6	Exceptional items	-	-0.6
38.3	22.4	EBITA	99.3	71.0
9.3%	5.3%	ROS before exceptional items (in %)	8.1%	5.6%

Quarter 3		x € million	Year-to-date Q3
2009	2008		2009	2008
286.4	287.2	Net sales	894.0	840.5
26.9	15.3	EBITA before exceptional items	72.8	47.1
-	-0.4	Exceptional items	-	-0.4
26.9	14.9	EBITA	72.8	46.7
9.3%	5.3%	ROS before exceptional items (in %)	8.1%	5.6%

Bakery Supplies North America showed a negative organic sales growth of 4.4% in Q3, caused by a volume decline of 2.2% and a negative price/mix effect of 2.2%. After the stabilization in Q2 it shows that market demand still is volatile.

Bakery Supplies North America Q3 EBITA was up US\$ 15.3 million compared with last year. The effect of the slightly lower volumes was more than compensated by a recovery of our margins, cost savings as well as the continued improved performance of our company H.C. Brill.

• Bakery Supplies Europe

Quarter 3		x € million	Year-to-date Q3
2009	2008		2009	2008
255.7	269.9	Net sales	756.6	801.2
12.2	10.2	EBITA before exceptional items	30.2	37.7
-	-1.8	Exceptional items	-	-13.2
12.2	8.4	EBITA	30.2	24.5
4.8%	3.8%	ROS before exceptional items (in %)	4.0%	4.7%

Bakery Supplies Europe showed a negative organic sales growth of 3.5%. Volumes sold were on balance stable with different positions in various markets. Compared to a year ago the price/mix effect was negative 3.5%. The weaker pound sterling impacted sales negatively by € 5 million.

Bakery Supplies Europe delivered a higher EBITA compared with Q3 2008. Cost reductions to compensate for the impact of the recession and current raw material contracts were the main contributors to the improved performance. Our activities in Germany improved their results compared to last year.

• PURAC

Quarter 3		x € million	Year-to-date Q3
2009	2008		2009	2008
92.4	82.4	Net sales	267.6	245.0
14.2	5.5	EBITA before exceptional items	24.1	23.0
-	-0.2	Exceptional items	-	0.8
14.2	5.3	EBITA	24.1	23.8
15.4%	6.7%	ROS before exceptional items (in %)	10.5%	10.2%

PURAC showed an organic sales growth of 9.5%. Volumes sold were down 4.9%, but if we correct for the lost volume in potassium based products sales volumes were stable. Selling prices compared to a year ago were up, leading to the organic sales growth. Sales to our more cyclical customers in the semiconductor and chemical industries showed an increase compared with the second quarter of this year. The US dollar positively impacted sales by € 2.2 million.

PURAC's EBITA improvement of € 8.7 million reflects a recovery in our margins due to current raw material contracts and lower costs mainly resulting from the supply chain reorganization in 2008. The EBITA improvement compared with Q2 is due to better capacity utilization in our factories supported by higher volumes sold and less impact of our inventory reduction initiatives as well as current raw material prices.

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There will be a conference call for investors and analysts at 11 o'clock CET when the management board will be available to respond to questions.

Dial-in details

Conference call title: Q3 Interim Management statement – conference ID 4176410
Telephone numbers:	The Netherlands	+31 20 794 8507
	United Kingdom	+44 207 190 1494
	Germany	+49 69 58 999 0705
	U.S.	+1 480 629 9654
	France	+33 1 70 993 504
	Denmark	+45 3271 4919
	Sweden	+46 850 520 370

For more information, please contact:

Press: Eva Lindner, Communication Director, tel. +31 20 5906320 Analysts: Ian Blackford, Investor Relations Manager, tel. +31 (0)20 5906349 / mobile +44 (0)7767 227506

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Background information:

CSM is the largest supplier of bakery products worldwide and is global market leader in lactic acid and lactic acid derivatives. CSM produces and distributes an extensive range of bakery products and ingredients for artisan and industrial bakeries and for in-store as well as out-of-home markets. It also produces a variety of lactic acid applications for the food, chemical and pharmaceutical industries. CSM operates in business-tobusiness markets throughout Europe, North America, South America, and Asia, generates annual sales of € 2.6 billion and has a workforce of around 8,450 employees in 25 countries. CSM is listed on Euronext Amsterdam. For more information: www.csm.nl.