Bluestar Adisseo : H1 result estimated landing around CNY30-35mil despite continued volume growth and cost reduction starting to impact positively

Safety and Sustainability

• Safety is and remains Adisseo's priority: 12-month rollingTRIRas of 30 June 2023 at0.56
• Adisseo sustainability ambition: Nanjing steam recycling project well on track

H1 2023: net profit attributable to shareholders estimated CNY 30 to 35 mil, given sharp price erosion, raw material costs still at a high level even though progressively reducing

Business highlights

• Despite weak demand in the context of high inflation,
• +24%volume growth in liquid methionine
• Double-digit growth in specialties notably in ruminant
• Nor-feed acquisitionsynergies in progress, especially in China
• Specialty Expansion and Optimization projectin Europe on track with expected start up in H1 2024
• Innov'ia Capacity expansion projectcompleted in June 2023

Action plan to protect margins

• Raw material and energy cost decrease starts to impact positively variable and distribution costs
• Extra cost-cutting program on top of ongoing competitiveness program, starting to deliver savings in Q2
• Strict control of resources, nearly flat vs. 2022

One-China Strategy

• Double-digit revenue growth in China, led by accelerated liquid methionine penetration in Chinese market
• Strategic alliance agreements signed with universities for joint study on disruptive new technologies
• Chinese specialty capacity expansion project: land purchase completed, entering detailed design phase
• Calysseo: trial production progressing step by step, expected to launch FeedKind^@into Chinese market by the end of 2023

Positive Free Cash Flow after tax (around CNY350mil) reflecting tight working capital and cash management

FY2023 outlook

• Safety and sustainability remain Adisseo's top priorities
• Low visibility on market demand but pricing is starting to stabilize, and cost is going down. Throughout 2023, volume growth is expected to accelerate
• In this uncertain context, Adisseo is fully engaged to implement all necessary actions to protect margins and to pursue investment for future

Zhigang HAO, Chairman and CEO of Adisseo, said: "In H1 2023, facing with extremely challenging market conditions, we managed to achieve a strong volume growth(+24%)in liquid methionine, notably in China, supported by the successful acceleration in the installation of new liquid methionine spraying equipment as well as double-digit revenue growth in specialty business mainly led by ruminant business.

H1 2023 net profit attributable to shareholders estimated landing at around CNY30-35mil, due to the sharp price erosion and raw material costs still at a high level even though progressively reducing.

Q2 2023 net profit attributable to shareholders grew by ca. 30mCNY compared to Q1 2023 reflecting the progressive positive impact arising from decreasing raw material and energy costs.

Swift and agile action plans to protect margins, including price optimization, product volume allocation, proactive cash management and extra cost-cutting programs, start to deliver positive impacts on net results.

Nor-feed acquisition, completed in Feb 2023, starts to provide synergies especially in China.

One-China Strategy is progressing on all fronts with accelerated penetration of liquid methionine, development of our research and innovation capabilities, extension of our production capabilities in specialties and on-going digital transformation.

2023 is a difficult and transitional year. Despite limited visibility on market demand, we expect the business performance to gradually bounce back, benefiting from volume growth, prices stabilization and cost reduction as well as on-going margin protection measures. We continue to invest for the future and are confident to deliver mid-to-long-term growth."

I. Business Review: Net Profit Attributable to Shareholders*

Unit: CNY (100mil)	H1 2023 (Estimated)	H1 2022	YoY variance (Estimated)
Net profit attributable to the shareholders of the Company	0.3-0.35	8.7	96%-97%

*Reviewed by Bluestar Adisseo Company ("Adisseo" or "the Company") Audited Committee on 13^thJuly 2023.

Safety is and will remain Adisseo's priority. The safety performance for 12-month rollingTRIRas of 30 June 2023 landed at0.56.

Adisseo is on track towards its sustainability ambition. GHG emissions intensity increased in Q2 in line with expectation given the turnaround in European plants.

Steam recycling project, one of the strategic plans to improve energy consumption in Nanjing plant, is well on track with expected go-live around Oct 2023.

Adisseo issued its2022 Sustainability Report(CN version)during Chinese National Safety Month, echoing national promotion of ESG and illustrating the Company's strong commitment to the sustainable development.

In H1 2023, in the context of significant macro-environment challenges,net profit attributable to shareholderslanded at around CNY30-35mil, mainly due to the sharp price decrease in performance products.

Regarding themethionine business, Adisseo achieved strong volume growth(+24%)in liquid methionine driven notably by China. This positive dynamic is supported by the acceleration in the installation of new liquid methionine spraying equipment.

Pricing has been under ongoing downwards pressure globally, but some signs of stabilization are emerging.

Decrease in raw material and energy costs are starting to impact positively variable and distribution costs in Q2.

Adjustment measures, including the temporary shut-down of a European powder plant are being continued to optimize costs.

OnVitamins, thanks to the careful management of volumes and prices, profitability starts to stabilize despite significant pricing pressure on Vitamin A business.

Specialtiesrevenues recorded continued double-digit growth, mainly driven by:

• Double-digit growth in ruminant business despite headwinds and the difficult market conditions especially in China
• Continued growth in Health by Nutrition driven by excellent performance of Selisseo across all regions and in particular in Latin America and North America
• Partly offset by monogastric business impacted mainly by difficult swine market

Specialties Capacity Expansion and Optimization Projectis progressing well in Spain with start-up expected in H1 2024.

The acquisition ofNor-Feed, a French group that designs, produces and markets plant-based specialty ingredients and plant extracts for animal nutrition, was closed in February 2023. During Q2, Nor-Feed and Adisseo are progressing on synergies especially in China, while Nor-Feed is well on track on its business development.

Construction of New industry platform ofInnov'iawas completed by the end of June. A new production facility with more capacity to meet long term customer demand and in line with new European standards in terms of Security & Quality has been established,

In H1 2023,One-China Strategyprogressed successfully with tangible benefits delivered:

• Double-digit revenue growth (+18%)inChina driven by extraordinary penetration of liquid methionine in China market
• Nanjing Plant (BANC360)operates at competitive cost and excellent safety performance; Detailed Engineering Design ofnew China Specialty blending facilityin progress with land purchase completed
• "Smart Plant" Digitalization Projectin Nanjing plant accelerating its speed with promising return on yield improvement, energy consumption as well as higher-level safety and sustainability
• Joint Research & Innovation cooperationshave been established between Adisseo and Beijing University of Chemical TechnologyandTianjin University to develop disruptive technologies and product development in bioengineering and new crystallization technology.
• Calysseo Chongqing plant, the world's first commercial FeedKind® facility, pursues its trial production. The product is expected to be launched in Chinese market by the end of the year.

H1 2023 net profit attributable to shareholderssharply decreased compared with last year due to the significant decrease in gross profit and increased depreciation and amortization.

Around CNY30milquarter-to-quarter increase innet profit attributable to shareholdershas been achieved thanks to the benefits from raw material and energy costs decrease as well as operational excellence programs, which include on-going competitiveness enhancement program with expectedrecurring saving of CNY138miland extra cost-cutting plans with expectedadditional savings of CNY200milin 2023.

The programs are global and transversal, which are implemented across the group with cost control measures at most rigorous level, including optimization of distribution costs, drastic reduction of external expenses and scrutinized resources allocations focused on business growth and market penetration.

Higher financing costs has been partially offset by positive FX impact mainly driven by appreciation of Euro and USD vs CNY in H1 2023.

Positive free cash flow after tax (around CNY350mil) has been achieved thanks to significant improvement in working capital.

II. FY2023 outlook

Safety and sustainability remain Adisseo's top priorities.

The visibility on market demand remains low but pricing is starting to stabilize, and raw material and energy costs are going down. Throughout 2023, the volume growth is expected to continue thanks notably to strong growth in liquid methionine and accelerated penetration of new specialty products.

In this uncertain environment, Adisseo is fully engaged to implement all necessary actions to protect margins and to pursue investments for future. This includes:

• Ongoing proactive margin and cost optimization arising from competitiveness enhancement program and extra cost-cutting plans
• Full leverage of raw material and energy costs decrease
• Strategic projects to support sustainable and profitable business growth in the long term

-End-

About Adisseo

Adisseo is one of the world's leading experts in feed additives. The group relies on its 8 research centers and its production sites based in Europe, USA, Thailand and China to design, produce, and market nutritional solutions for sustainable animal feed. With more than 2,650 employees, it serves around 4,200 customers in over 110 different countries through its global distribution network.

Adisseo is one of the main subsidiaries of China National BlueStar, leader in the Chinese chemical industry with more than 20,000 employees and a turnover of CNY 73.5 billion in 2022.

Adisseo is listed on the Shanghai Stock Exchange.

Adisseo Corporate websites:www.adisseo.com;www.bluestar-adisseo.com

ADISSEO press contact

In China: Yun CAI, [e-mail]