Bluestar Adisseo Nutrition : Company 2016 Results

Bluestar Adisseo Company 2016 Results

Release time:2017-03-30

PRESS RELEASE

新闻稿

Antony, Shanghai, March 30, 2017

Bluestar Adisseo Company announces FY 2016 results above expectations.

The Group remainsconfident for 2017

Specialties is expected to become a stronger sales engine in future

Key Figures(amount / % in comparison with 2015 after restatement): · Operating revenue: 106.9 (100 million) Yuan· Net profit attributable to shareholders: 18.7 (100 million) Yuan / 17.4% margin· Operating Cash flow: 30.5 (100 million) Yuan Business highlights: Bluestar Adisseo Company continues to generate solid and above expectations results. 2016 operating profit margin reached 47% in a very competitive environment. ·Volumes steadily increased as expected, except for the ruminants business due to the global dairy market crisis which has now ended: - Methionine products are growing in line with market growth - Specialties: enzymes grow as expected - New products including Selisseo®, Rovabio Advance®, Alterion®progressing steadily and tomorrow Rhodimet A-Dry+®are promising and received positive feedback in customer surveys ·Methionine'smarginwasunder pressure due to change in demand / supply dynamic · Decision was made to: - invest in Methionine capacities to add 50 kT on our European platform to support future ADISSEO customers demand - invest in a new form of Methionine: ADRY+ ·Vitaminsrecordedhigher margin thanks to significant price increase and cost optimization ·Positive and continuing impactswere obtained froma stronger US$ andlower energy & raw material costs ·Rigorous cost control and plant's managementincreased efficiency

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

In (100 million) Yuan	2016	2015 before restatement* 重述前*	Change (%) before restatement* 同比增减（%）重述前	2015 after restatement** 重述后*	Change (%) after restatement** 同比增减（%）重述后
Operating revenue 营业收入	106.9	151.7	- 30%	122.0	- 12%
Net cash flow arising from operating activities 经营活动产生的现金流净额	30.5	35.6	- 14%	37.8	- 19%
Net profit attributable to shareholders 归属于股东的净利润	18.7	15.3	+ 22%	24.2	- 23%
Net profit attributable to the shareholders of the Company after deduction of non-recurring profit or losses 扣除非经常性损益后归属于股东的净利润	18.7	2.6	+ 619%	24.1	- 23%
Basic earnings per share (Yuan/ share) 基本每股收益（元/股）	0.70	0.58	+20%	0.92	- 24%

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

** 12 months of Adisseo business

2016 FINANCIAL AND OPERATIONAL OVERVIEW

2016 results are above expectations

Despite a challenging market environment, Adisseo managed to achieve above-expectations results for 2016.Volume growth was steady, except for the ruminants business due to the global dairy market crisis which has now ended.

In December 2016, Adisseo announced an investment expected to be completed at the end of 2018, a significant extension on its European platform (50KT) to meet Adisseo's customers demand.

The competitive pressure was anticipated: volume increase in Methionine and successful development of new Specialties products allowed Adisseo to maintain high profit margins.

As a consequence, 2016 net profit attributable to shareholders is above budget [+22% Vs +4% in 2016 budget].

On top of that, Adisseo has applied a rigorous cost control and plant's management that ensure a good level of profit margin. And besides focusing on the main product methionine, Adisseo is actively diversifying its product portfolio, and building a stronger second business pillar consisting of specialty products.

STRATEGY

To consolidate its leadership in performance products

Adisseo is a strong player and is investing in a growing and profitable market.

Adisseo is actively preparing future development by combining extensions and debottleneckings 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 a market leader in liquid methionine worlwide.

Adisseo continually heavily invests 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. It announced Rhodimet A-Dry+®,a brand new powder methionine product, based on the liquid methionine ('HMTBA') technology, to offer in early 2018 the advantages of this molecule to customers whose manufacturing process does not allow the use of liquid form.

Second business pillar to become a stronger sales engine

Adisseocontinues to develop successfully its specialty product portfolio (Rovabio®, Smartamine®, Metasmart®, Selisseo®, Alterion®) and to innovate in new nutritional feed additives that contribute to improve the performance of animal protein products.

Our products, combined with value-added services such as e-lab, PNE, DIM, impact feed conversion but also animal health, gut health, meat quality and contribute to address key issues such as Antibiotic Growth Promoters replacement.

Adisseo invests in innovation in its 7 labs (of which one is in China), with annual expenditures around 2.5 (100 million) Yuan.

Our high quality research allowed us to launch one new product per year in the last 4 years and our innovation pipeline makes us confident to be able to keep this pace for the coming years.

Our latest innovation - Alterion®, is a new probiotic product, developed in partnership with Novozymes. This probiotic product improves feed performance and provides a natural alternative to antibiotic growth promoters on poultry farms.

Looking forward, Adisseo will fully leverage its financial ressources to look for innovation in product development and customer services, investments on capacities and M&A opportunities. Adisseo is also confident to keep investing on emerging markets.

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 1,900 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 Evalua