Bluestar Adisseo Nutrition : Company announces FY 2016 forecast above expectations. It remains confident despite the challenging market environment

Bluestar Adisseo Company announces FY 2016 forecast above expectations. It remains confident despite the challenging market environment

Release time:2016-10-29

Key Figures (amount / % in comparison with YTD Q3 2015 after restatement): · Operating revenue: 80.9 (100 million) Yuan / - 13% · Net profit attributable to shareholders: 15.5 (100 million) Yuan / - 21% · Operating Cash flow: 21.8 (100 million) Yuan / - 32% Business highlights: after a very good first semester, Bluestar Adisseo Company continues to generate solid results as expected in third quarter. Despite the challenging environment, it maintains operating profit margin around 30%. · Volumes steadily increased as expected, except for the ruminants business due to the ongoing global dairy market crisis: - Vitamins and methionine are growing as forecasted - Specialties: new products including Selisseo®, Rovabio Advance®and Alterion®progressing steadily as planned · Methionine margin under pressure due to change in demand / supply dynamic · Vitamins higher margin thanks to price increase and cost optimization · Positive impact of a stronger US$ · Positive impact of low energy and raw material cost · Rigorous cost control and plant's management

Bluestar Adisseo Company (SSE stock code 600299), a global leader in nutrition & health feed solution, today announces its financial results for YTD Q3 2016.

In (100 million) Yuan	YTD Q3 2016	YTD Q3 2015 before restatement*	Change (%) before restatement*	YTD Q3 2015 after restatement**	Change (%) after restatement**
Operating revenue	80.9	122.3	- 34%	92.6	- 13%
Net cash flow arising from operating activities	21.8	30.0	- 27%	32.2	- 32%
Net profit attributable to shareholders	15.5	12.3	+ 26%	19.6	- 21%
Net profit attributable to the shareholders of the Company after deduction of non-recurring profit or losses	15.5	-	+ 100%	19.6	- 21%
Basic earnings per share (Yuan/ share)	0.58	0.47	+ 23%	0.73	- 21%

* 9 months of Adisseo business and 6 months of BNCM business

** 9 months of Adisseo business

YTD Q3 2016 FINANCIAL AND OPERATIONAL OVERVIEW

Revenue and profitability evolution

YTD Q3 2016 financial results include solely Adisseo business and 2015 YTD Q3 financial results before restatement include 6 months of BNCM business and 9 months of Adisseo business. As a basis of comparison, 2015 YTD Q3 financial results after restatement, representing purely 9 months of Adisseo business, are also indicated in the table.

YTD Q3 2016 business trends are in line with expectations and reflect the combined impact of:

- Additional production capacities, especially in the Nanjing liquid methionine plant, allow volumes steadily increased as expected, except for the ruminants business due to the ongoing global dairy market crisis;

- A less favorable market environment in the methionine business after an exceptional 2015 year, as expected;

- Improved prices and margins on vitamins;

- The positive impact of new specialty products launched recently. The increase in operating revenue in specialties product reflects constant innovation in new products over the last few years. During YTD Q3 2016, Adisseo pursued the launch of a new probiotic product, Alterion®, in partnership with Novozymes. The product is a probiotic that improve feed performance and provide a natural alternative to antibiotic growth promoters on poultry farms.

- Rigorous cost control and plant's management that ensured a good level of profit margin in the context of a decreasing pricing environment;

- Favorable economic environment with lower energy & raw material costs and stronger US$.

Due to these factors, YTD Q3 2016 net profit attributable to shareholders is above expectations.

Cash flow evolution

The net cash flow from operating activities is amounting to 21.8 (100 million) Yuan which allows to finance further development.

STRATEGY

Adisseo is a global leader in nutrition & health feed solutions. Its strategy is unchanged:

· Consolidate its leadership in performance products

Adisseo has very strong financial position and will invest in a growing and profitable market. Adisseo is actively preparing future development by combining extensions and debottlenecking of existing production facilities, as well as by studying new potential sites.

Adisseo has cutting-edge manufacture process with one of the lowest cost on liquid methionine, best quality and reliability. Adisseo has grown its market share from 23% to 27% in the past 4 years and is now the market leader in liquid methionine.

Adisseo also continually heavily invest in methionine related studies, so as to make sure that it will take the leading position in techonology and as such is always intending to provide break-through innovation in the industry.

· Continue to develop its specialty product ranges (Rovabio®, Smartamine®, Metasmart®, Selisseo®, Alterion®) and to innovate in new nutritional feed additives that contribute to improve the performance of animal feed

Adisseo has 7 labs in both France and China with annual expenditures around 2.2 (100 million) Yuan. These labs are true engines of Adisseo's development. In order to ensure sustainable growth, specialty products will become a second pillar and thus Adisseo allocates sound financial resources on R&D for new products. Sales for ruminant products grew nearly 5 times in the 6 year period and EBITDA increased drastically. Although the business is currently impacted due to the global milk crisis, Adisseo is confident about the great potential of this product in the near future.

Adisseo also developed other specialty products, such as an organic selenium product, Selisseo®, and a probiotics product, Alterion®. With strong global networks and solid brand image, Adisseo is commercializing such new products with a great probability of success.

Adisseo has four levers to support its growth strategy

· Investments.

· Innovation: with reinforced efforts on R&D programs, it intends to launch, on average, one new product per year. After the launch of Alterion® this year, innovations are in development for 2017 and beyond.

· M&A and partnerships.· Emerging markets footprint.

Due to these 4levers, Adisseo is fully confident in its ability to manage its development properly, bring its products to the next level of commercialization and grow at least at market rate.

About Adisseo

关于安迪苏

Adisseo is one of the world's leading experts in feed additives. The group relies on its 7 research centers and its production sites based in Europe and China to design, produce and market nutritional solutions for sustainable animal feed. With 1,800 employees, it serves more than 2,600 customers in over 100 different countries through its global distribution network. Adisseo is listed on the Shanghai Stock Exchange and is one of the main subsidiaries of China National BlueStar, leader in the Chinese chemical industry with nearly 25,000 employees and a turnover of 6.4 billion euros.

Adisseo Corporate website:www.adisseo.com

安迪苏是全球饲料添加 剂领域的领导者。公司在欧洲和中国拥有七大研究中心和生产基地，为动物饲料领域设计，生产，推广可持续的营养解决方案。安迪苏拥有1800 名员工, 通过其全球网络为上百个国家的超过2600位客户提供服务。安迪苏已在上海证券交易所上市，其母公司是中国化工行业的领先者中国蓝星集团，其拥有25000 名员工，营业额达到64亿欧元。

安迪苏官网: www.adisseo.com

About Adisseo products and services

Adisseo offers its customers 4 forms of an essential amino acid, methionine for poultry and swine (Rhodimet AT88 and Rhodimet NP99) and protected methionine for ruminants (Smartamine M and MetaSmart), a complete range of vitamins (Microvit), multi-activities enzymes (Rovabio) and the specialty Selisseo. Adisseo supports the development of its customers by providing valuable and innovative services such as PNE - Precise Nutrition Evaluation.

Adisseo Brands website:feedsolutions.adisseo.com

安迪苏为客户提供四种形式的基础氨基酸产品。主要用于禽类和猪的蛋氨酸(罗迪美Rhodimet®AT88和罗迪美Rhodimet®NP99)，适用于反刍动物的保护性蛋氨酸(斯特敏Smartamine®M和美斯特MetaSmart®),全系列维生素 (麦可维Microvit®)，多种活性的酶制剂产品(罗酶宝Rovabio®)，以及特种产品有机硒Selisseo®。安迪苏通过提供有价值和创新性的服务如PNE--精确的营养评价系统以支持客户的发展。

安迪苏品牌网站：feedsolutions.adisseo.com

Adisseo Investor Contact

安迪苏投资者关系顾问

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Adisseo Press Contact

M. Antoine Denry // [phone]// [e-mail]