Bluestar Adisseo : Adisseo 5-years Ambition

Adisseo 5-years Ambition

Release time:2021-04-01

On March 31, Adisseo (600299.SH) held an Investor Day event themed 'Leading Innovation, Sustainable Future'.

At the event, The 'WE' team, represented by Hao Zhigang, Chairman of Bluestar and Adisseo, Jean-Marc Dublanc, Deputy Chairman and CEO of Adisseo, Virginie Cayatte, CFO of the Adisseo Group, Wang Hao, Greater China Executive Vice President of Adisseo , Cai Yun, CFO of Adisseo, and Liang Qinan, Board Secretary of Adisseo, introduced the Company's business development plan.

Business Strategy Aleader in animal nutrition businesswith80+ years industrial experience Strong track record withresilient performance Engaged management teamstrongly supported by controlling shareholders with anexcellent combination of western and eastern culture 'Two-pillar' strategy Continuous investmentfor future ​Long-term sustainability target: Achieve Zero accident andmeet Paris agreements' targetGreat confidenceto deliver the 5-year ambition: double-digit CAGR growth in both revenue and net profit

'WE' is the initials of the words 'West' and 'East', representing that Adisseo integrates both 'West' and 'East', i.e. is a company that integrates Chinese and foreign industries, technologies and cultures together, and forms its own unique corporate culture and becomes a unique international company in the A-share market.

The 'WE' team also answered in detail investors' questions on how to achieve growth and high quality development, and presented a clear roadmap for the company's sustainable development in the next five years, showing Adisseo's commitment for a long-term, win-win future with Chinese investors. The 'WE team' expressed Adisseo is confident in the sustainable growth over the next five years.

Given its global footprint and its leadership, Adisseo is highly resilient when facing market volatility and uncertainty. Adisseo's track record has demonstrated the success of the implementation of its business strategy.

With safety and sustainability as key priorities, Adisseo is willing to consolidate its leadership in the methionine market,to maintain its unique position in the vitamin business, and to accelerate its development as a customer-centric and innovative solution provider for specialties.

The execution of this strategy is supported by Adisseo's five distinctive capabilities: a global sales & distribution network, a global manufacturing set-up, the continuous improvement of cost competitiveness, strong research & innovation capabilities and lastly, being a Chinese company, accelerating development in China, which echoing President Xi Jinping's concept of a 'dual circulation policy'.

Safety remains Adisseo's N°1 priority. Adisseo achieved its best-ever safety results in 2020.

The Company is also fully committed to reducing its environmental impact and is on track to meet the Paris Agreement's targets.

Adisseo has an unrivalled position in methionine thanks to its complete offer. The state-of-art industrial set-up between China and Europe allows to serve global customers in a flexible and agile way. Thanks to its best-available technology in liquid methionine, Adisseo has strong cost leadership. Its cost competitiveness has always been reinforced through capacity expansion, process improvement and development of big-data analysis in plant management. Adisseo starts thinking about its next methionine production platform to meet ever-increasing customer demand and to enhance cost competitiveness.

Adisseo is maintaining its Vitamin business, thanks to its unique competitiveness which includes a large portfolio of Vitamin products with reliable supply, guaranteed by its quality certification system, excellent formulation capabilities leveraged in the formulation of Microvit® A & E and its global presence, reinforced by excellent sourcing capabilities in China.

Positioned as a customer-centric and innovative solution provider, Adisseo specialties business has doubled in the past 5 years with CAGR at 16%.

Its product portfolio has continuously expanded, fed by internal innovation and external strategic alliances or acquisitions.

Adisseo will consolidate its strong position in ruminant business with reinforced global distribution capabilities and the continuous launch of new products.

Meanwhile, Adisseo will also consolidate its leading positioning in feed digestibility. Adisseo aims to accelerate the launch of new product with expansion to phytase (50% of enzyme market) and further penetration into new geographies. The company is also willing to continuously improve production cost and product efficiency, leveraging internal formulation technology.

Adisseo is expanding into the aqua business, starting in 2018 with the acquisition of Nutriad, then the development of a new Aqua R&D center in Singapore in 2019. With Calysseo, a JV established with Calysta early 2020 to produce and distribute an innovative solution to provide high quality protein for aqua products, Adisseo becomes a major contributor to food safety and sustainability in China and Southeast Asia.

Last but not the least, Adisseo will capitalize on its existing expertise in nutrition and its current activities in animal resilience to grow through geographical expansion and consolidation of FRAmelco acquisition, to further reinforce its product portfolio and to develop services to consolidate its solution approach in this sector.

Adisseo is accelerating its development in China to reach the next level. It will be achieved by doubling its methionine capacity in Nanjing, reinforcing its leadership position in dairy, and developing aquaculture and alternative protein segments.

Adisseo's focus on customers will be strengthened by leveraging value-added services and digital tools, establishing, and developing a world-class research & innovation center in China and building a local blending facility.

Adisseo is also willing to leverage the listing position on the A-share market.

'With the right strategy and the right team to execute it, we will become a stronger leader in methionine and a leader in providing high-end specialty solutions to the Chinese market' summarized Jean-Marc Dublanc.

Healthy cash generation in the past allowed Adisseo to finance investments for future while distributing attractive dividend.

Strong balance sheet with low leverage ratio offers great advantage to seize external growth opportunities and financing capabilities.

The company will continue to seize M&A opportunities to accelerate growth, notably in China, to expand products and services range and to create synergies and scale.

As closing remark to the event, Mr. Jean-Marc Dublanc said 'Adisseo will constantly improve its product quality and service, execute its 'Two-Pillar' strategy to consolidate the leadership in methionine, maintain the unique position in vitamin and accelerate the development in specialties with confidence to realize our 5-year ambition: double-digit CAGR growth in both revenue and net profit with a sustained dividend pay-out ratio as well as to capture the full potential of the Chinese market through 'One-China' strategy leveraging its unique DNA. Our goal is to be the leader in feed additives and the preferred partner of our customers, while pursuing a sustainable growth model.'

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About Adisseo

Adisseo is one of the world's leading experts in feed additives. The group relies on its 10 research centers and its production sites based in Europe, USA and China to design, produce and market nutritional solutions for sustainable animal feed. With more than 2,300 employees, it serves around 3,900 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 nearly 23,000 employees and a turnover of CNY 60 billion. 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]