Corbion N.V. — Interim / Quarterly Report 2010

Oct 27, 2010

CSM nv Corporate Communications

Nienoord 13 1112 XE Diemen PO Box 349 1000 AH Amsterdam the Netherlands

T +31 (20) 590 6320

E eva.lindner@csmglobal.com

I www.csmglobal.com

Press Release Press Release

CSM Q3 2010 Interim Management Statement

date Diemen, the Netherlands, October 27, 2010

CSM delivered a 19% increase in underlying EBITA in Q3 2010 compared to Q3 2009. All three divisions posted organic sales growth in a challenging market. The integration of Best Brands is progressing according to plan.

Key Facts

• Sales for the 3rd quarter were € 783.7 million compared with € 634.5 million in 2009. The increase of € 149.2 million is attributable to the Best Brands acquisition with an effect of € 95.2 million, positive currency effects of € 45.1 million and organic growth of € 8.9 million realized by all three divisions.
• EBITA in the 3rd quarter, excluding one-off integration costs, amounted to € 56.7 million, up € 9.1 million compared with the same period in 2009. Currency effects impacted results positively by € 5.1 million.
• The Best Brands acquisition impacted EBITA in the 3rd quarter by € 3.8 million, including integration costs of € 3.4 million.

Key Figures

.

Quarter 3			Year To Date Q3
2010	2009	x € million	2010	2009
783.7	634.5	Net sales	2,199.5	1,918.2
56.7	47.6	EBITA excluding one-off costs Best Brands *	159.2	108.3
53.3	47.6	EBITA	145.2	108.3
7.2%	7.5%	ROS (excl. one-off costs Best Brands)**	7.2%	5.6%

*) The one-off costs related to the acquisition of Best Brands comprise acquisition and integration costs

**) ROS is defined as EBITA as % of net sales

The figures in this press release have not been audited

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

"We have delivered another quarter with substantial EBITA growth; an increase of 19% in the 3rd quarter 2010 against the strong comparison base of last year. I am even more pleased to report organic sales growth for all our activities, demonstrating CSM's ability to show positive momentum in a challenging market environment, in which our continued innovation investments proved to be valued by our customers. The acquisition of Best Brands and ongoing strict cost management also contributed to these improved results. Across all our divisions we see raw material markets increasing substantially. We have taken the first steps to increase the selling prices to compensate for this.

At Bakery Supplies we continue our strategic journey to deliver ROS targets of 8-10% and above market growth.

In Europe the strategic investments in frozen products are delivering increased volumes. Together with cost management, these higher volumes contributed to the improvement in EBITA.

At Bakery Supplies North America we remain focused on the swift integration of Best Brands, allowing the organization to maximize its combined potential as soon as possible. We have put our focus and energy on integrating the commercial organization to best serve our customers and enabling revenue synergies. In parallel, we are integrating our operations to deliver on our cost synergies. With the swift integration we are aware that we are stretching our organization. Our focus is on achieving long term synergies and getting the fundamentals right, rather than focusing on short term gains. Best Brands proves to be a perfect strategic fit and we see the integration effects becoming more visible, on which we will give an update in the presentation of our full year 2010 results.

Purac retains its long term focus on volume growth, whilst maintaining healthy margins. We are continuing to invest in our bio-plastic capabilities and strengthening our partnership approach. Much progress has been made, but the long-term strategic nature of the projects and partnerships has given no opportunity for new announcements, other than our partnership with Arkema."

Prospects

We remain cautiously optimistic for the 4th quarter of 2010. We expect our investments in our organization and innovation to continue to create growth opportunities. The main contributor to market growth is consumer confidence, which is still weak in a number of markets. Our raw material positions are carefully managed by our procurement organization and are sufficiently covered, although at a somewhat higher price level for the remainder of the year.

At Purac we expect to see continuing growth whilst investing in the organization to support future growth as previously announced, this will as a consequence have a moderating impact on our short-term EBITA.

Overall, we expect again a substantial EBITA increase in the 4th quarter over the 4th quarter compared with the same quarter last year.

Business Developments

The breakdown of organic growth is as follows:

	Quarter 3			Year-to-Date Q3
Organic	Volume	Price/Mix		Organic	Volume	Price/Mix
1.0%	-0.4%	1.4%	BSNA	-0.4%	-1.4%	1.0%
1.0%	0.9%	0.1%	BSEU	-1.4%	-1.2%	-0.2%
3.9%	7.9%	-4.0%	Purac	8.3%	11.1%	-2.8%

Bakery Supplies Total

Quarter 3			Year To Date Q3
2010	2009	x € million	2010	2009
679.3	542.1	Net sales	1,895.9	1,650.6
49.1	39.1	EBITA excluding one-off costs Best Brands *	136.7	103.0
45.7	39.1	EBITA	122.7	103.0
7.2%	7.2%	ROS (excl. one-off costs Best Brands) **	7.2%	6.2%

*) The one-off costs related to the acquisition of Best Brands comprise acquisition and integration costs

**) ROS is defined as EBITA as % of net sales

• Bakery Supplies North America

Quarter 3			Year To Date Q3
2010	2009	x US\$ million	2010	2009
540.9	411.8	Net sales	1,503.1	1,219.1
42.9	38.3	EBITA excluding one-off costs Best Brands *	119.0	99.3
38.5	38.3	EBITA	100.6	99.3
7.9%	9.4%	ROS (excl. one-off costs Best Brands) **	7.9%	8.1%

*) The one-off costs related to the acquisition of Best Brands comprise acquisition and integration costs

**) ROS is defined as EBITA as % of net sales

Quarter 3			Year To Date Q3
2010	2009	x € million	2010	2009
418.4	286.4	Net sales	1,143.6	894.0
33.1	26.9	EBITA excluding one-off costs Best Brands *	90.5	72.8
29.7	26.9	EBITA	76.5	72.8
7.9%	9.4%	ROS (excl. one-off costs Best Brands) **	7.9%	8.1%

*) The one-off costs related to the acquisition of Best Brands comprise acquisition and integration costs

**) ROS is defined as EBITA as % of net sales

Organic sales growth in the 3rd quarter was 1.0% driven by a positive price/mix effect of 1.4%, which was partly offset by a negative volume effect of 0.4%. Overall sales growth was 31.4%, largely due to the consolidation of Best Brands.

EBITA showed an increase of 12% in the 3rd quarter compared with a very good quarter last year and is largely attributable to the Best Brands acquisition.

The integration of Best Brands within the existing Bakery Supplies North America companies is proceeding rapidly and is well on track, asking for an enormous effort from the organization. Our efforts are on realizing the combined potential, focusing on the long term synergies.

The sharply increased raw material market prices have not been fully absorbed yet by increased selling prices or reformulations of our products. We are working diligently to address this.

The effect of the Best Brands acquisition in the 3rd quarter was US\$ 5.1 million which includes oneoff integration costs of US\$ 4.4 million.

• Bakery Supplies Europe

Quarter 3			Year To Date Q3
2010	2009	x € million	2010	2009
260.9	255.7	Net sales	752.3	756.6
16.0	12.2	EBITA	46.2	30.2
6.1%	4.8%	ROS (in %)**	6.1%	4.0%

**) ROS is defined as EBITA as % of net sales

Sales in Bakery Supplies Europe increased in the 3rd quarter by € 5.2 million (2.0%) compared to last year. Organic growth was 1.0%, driven by higher volumes in frozen products. Currency effects, due to a stronger pound sterling, had a positive effect on sales of € 2.7 million (1.0%).

Bakery Supplies Europe delivered an increase of 31% in EBITA compared with the 3rd quarter in 2009. Higher volumes and cost control were the main contributors to the improved performance.

We are pleased to announce that Herman Verstraeten will head our European businesses as the new president of Bakery Supply Europe. Marco Bertacca, as Vice President Global Bakery Expansion Strategy, will support the Board of Management in CSM's expansion in new regions. Herman Verstraeten joins us from Unilever where he has built a great track record in driving growth strategies across Eastern-Europe and Russia, bringing many years of management experience in food, including bakery.

Purac

Quarter 3			Year To Date Q3
2010	2009	x € million	2010	2009
104.4	92.4	Net sales	303.6	267.6
14.4	14.2	EBITA	44.6	24.1
13.8%	15.4%	ROS (in %)**	14.7%	9.0%

**) ROS is defined as EBITA as % of net sales

Purac increased its sales by 13% in the 3rd quarter. Currency effects, mainly the stronger US dollar, contributed positively to sales by € 8.4 million. Purac showed an organic sales growth of 3.9%, driven by higher volumes sold (7.9%) and offset by a negative price/mix effect (4%).

Purac's EBITA increased by € 0.2 million compared with a very strong quarter in 2009, driven by the volume increase and offset by mix-effects and lower pricing. In addition, raw material costs increased against last year. We are actively working to translate this into our pricing with the intention to fully compensate for higher input costs.

There will be a conference call for investors and analysts at 11 am CET when the management board will be available to respond to questions. Dial-in details Conference call title: Q3 Interim Management Report – conference ID 4378956 Telephone numbers: The Netherlands +31 20-796-5200 United Kingdom + 44-207-038-6346 Germany + 49-6958-999-0815 U.S. +1-480-629-9801 France + 33-1-70-993-504 Denmark + 45-3271-4919 Sweden + 46-850-520-370 Belgium + 32-2-290-1687

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For more information, please contact:

Switzerland + 41-4-345 69103

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

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-to-business markets throughout Europe, North America, South America, and Asia, generates annual sales of € 3 billion (pro forma 2009) and has a workforce of around 10,000 employees in 25 countries. CSM is listed on NYSE Euronext Amsterdam. For more information: www.csmglobal.com