\nThe consolidated financial statements of Corbion nv have been prepared in accordance with the International Financial Reporting Standards (IFRS) adopted by the European Union.
\n\nIn 2023, Corbion applied all the new and amended standards and interpretations published by the International Accounting Standards Board (IASB) and the International Financial Reporting Interpretations Committee (IFRIC), if and insofar as these applied to Corbion and were effective as at 1 January 2023. Corbion did not have to change its accounting policies or make retrospective adjustments as a result of adopting these standards.
\n\n\nIFRS 17 Insurance Contracts
The new standard had no impact on the Group\u2019s consolidated financial statements.
\nDefinition of Accounting Estimates - Amendments to IAS 8
The amendments had no impact on the Group\u2019s consolidated financial statements.
\nDisclosure of Accounting Policies - Amendments to IAS 1 and IFRS Practice Statement 2
The amendments to IAS 1 and IFRS Practice Statement 2 Making Materiality Judgements provide guidance and examples to help entities apply materiality judgements to accounting policy disclosures. The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their \u2018significant\u2019 accounting policies with a requirement to disclose their \u2018material\u2019 accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures.
\nIn line with the amendments in IAS 1, specifically article 117, Corbion removed several accounting policy disclosures and standardized\u00a0information, or information that only duplicates or summarizes\u00a0the requirements of the IFRSs. The accounting policy information focuses on how Corbion has chosen alternatives in IFRS standards and how Corbion has applied the\u00a0requirements of the IFRSs to its own circumstances. Further, some information which was previously provided in the accounting policies section is now disclosed in the note it relates to.
\n\n\nThe amendments have had an impact on the Group\u2019s disclosures of accounting policies, but not on the measurement, recognition or presentation of any items in the Group\u2019s financial statements.
\n\nA number of amended standards are effective for annual periods beginning on or after 1 January 2024 and earlier application is permitted; however, Corbion has not yet adopted the amended standards in preparing these consolidated financial statements.
\n\nThe consolidation includes the financial data of Corbion nv and its group companies (together Corbion). All inter-company receivables, debts, and transactions have been eliminated. Group companies are companies in which Corbion nv exercises control. The results of acquisitions and divestments are recognized from the moment that control is obtained or transferred.
\n\nThe consolidated financial statements are in euros. The euro is Corbion nv\u2019s functional and presentation currency.\u00a0
\n\nLand, buildings, machinery and equipment, and other operating assets are valued at the acquisition price or the cost of production, subject to straight-line depreciation calculated over the estimated economic life, the estimated residual value, and any accumulated impairment losses. The cost of production includes the cost of materials and direct labor and an attributable part of the indirect costs. Land is not depreciated. Grants are deducted from the acquisition price or the production costs of the assets to which the grant relates. Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the expenditure will flow to Corbion. Depreciation methods, useful lives, and residual values are reviewed at each reporting date and adjusted if appropriate.
\n\nThe lease liability is initially measured at the present value of outstanding lease payments, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the group\u2019s incremental borrowing rate. Generally, Corbion uses its incremental borrowing rate as the discount rate.
\n\n\nPayments associated with short-term leases of equipment and vehicles and all leases of low-value assets are recognized on a straight-line basis as an expense in profit or loss.
\n\nInventories of raw materials, consumables, technical materials, and packaging are stated at the lower of cost (first in, first out) and net realizable value. Inventories of work in progress and finished products are stated at the lower of production cost and net realizable value. Total cost of production includes payroll costs and materials and an attributable part of the indirect production costs.
\n\nFinancial liabilities are classified as measured at amortized cost or fair value through profit and loss (FVTPL). A financial liability is classified as at FVTPL if it is classified as held-for-trading, if it is a derivative, or designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognized in profit or loss. Other financial liabilities are subsequently measured at amortized cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognized in profit or loss. Any gain or loss on derecognition is also recognized in profit or loss.
\n\n\nCorbion derecognizes a financial liability when its contractual obligations are discharged, cancelled, or expired. Corbion also derecognizes a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognized at fair value.
\n\n\nOn derecognition of a financial liability, the difference between the carrying amount derecognized and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss.
\n\nAn operating segment is an entity that engages in business activities from which it earns revenues and incurs expenses. All operating segments are reviewed regularly by the Executive Committee to make decisions about resources to be allocated to the segments and assess their performance for which discrete financial information is available.
\n\nNet sales comprises the proceeds of goods delivered to third parties less discounts and value-added tax.
\n\n\nRevenue from the sale of goods in the normal course of business is recognized at a point in time when the performance obligation is met and based on the amount of the transaction price that is allocated to the performance obligation. The transaction price is the amount of the consideration to which the company expects to be entitled in exchange for transferring the promised goods to the customer. The consideration expected by the company may include fixed and/or variable amounts which can be impacted by sales returns, trade discounts, and volume rebates. Revenue from the sale of goods is recognized when control of the asset is transferred to the buyer and only when it is highly probable that a significant reversal of revenue will not occur as uncertainties related to a variable consideration have been resolved.
\n\nThe consolidated cash flow statement is drawn up using the indirect method. The items in the consolidated income statement and consolidated statement of the financial position have been adjusted for changes that do not impact cash inflow and outflow in the reporting year. Cash flows in foreign currencies are translated to the functional currency at the average foreign exchange rates unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case cash flows are translated at the rate on the dates of the transactions.
\n\nCorbion makes use of accounting estimates and judgments. The inputs into our estimates and assumptions consider the climate-related matters on our critical accounting estimates. Corbion believes there is considerable uncertainty over these assumptions and how they will impact the business operations and the cash flow projections. The estimates and assumptions have been based on the available information and regulations in place as of 31 December 2023.
\n\n\nDescribed below are the estimates and judgments as at the balance sheet date that carry a substantial risk of a material adjustment to the book value of assets and liabilities in the next financial year.
\n\nCorbion has a process in place to identify all assets and liabilities acquired, including intangible fixed assets. The judgments made in identifying all acquired assets, determining the estimated fair value assigned to each class of assets acquired and liabilities assumed, as well as asset lives, can materially impact the results of operations. Estimated fair values are based on information available around the acquisition date and on expectations and assumptions of anticipated discounted cash flows that have been assessed as reasonable by Corbion.\u00a0
\n\nEvery year, Corbion tests the goodwill for impairment based on the higher of fair value less cost to sell and the value-in-use method. The value in use is calculated on the basis of estimates and judgments of the expected cash flows which are discounted on a WACC basis. For a description of the main estimates, valuation assumptions, and a sensitivity analysis of the applied assumptions see Note 12.
\n\n(In)tangible fixed assets are tested for sustained impairment if there is an indication of possible impairment. A key factor is the recoverable amount which is calculated on the basis of estimates and assumptions of anticipated discounted cash flows, on the one hand, and an estimate of the fair value less cost to sell, on the other. For more information on impairments see Notes 10 and 12.
\n\nActuarial calculations are used to determine provisions for group personnel arrangements and net receivables or obligations from group pension plans. These calculations use assumptions in respect of future developments in salary, mortality, staff turnover, return on investments et cetera. Changes to these estimates and assumptions can lead to actuarial gains and losses which are recognized in the consolidated statement of comprehensive income. For more information on the applied assumptions see Note 20.
\n\nCorbion is subject to various tax systems across the world. Estimates and judgments are used to determine the tax items in the financial statements. Interpretation differences in tax liabilities are also taken into account.
Pillar Two legislation has been enacted or substantively enacted in certain jurisdictions Corbion operates. The legislation will be effective for the Corbion\u2019s financial year beginning 1 January 2024. Corbion is in scope of the enacted or substantively enacted legislation and has performed an assessment of Corbion\u2019s potential exposure to Pillar Two income taxes. The assessment of the potential exposure to Pillar Two income taxes is based on the most recent tax filings, country-by-country reporting and financial statements for the constituent entities in Corbion. Based on the assessment, the Pillar Two effective tax rates in most of the jurisdictions in which Corbion operates are above 15%. However, there are a limited number of jurisdictions where the transitional safe harbor relief does not apply and the Pillar Two effective tax rate is close to 15%. Corbion does not expect a material exposure to Pillar Two income taxes in those jurisdictions and no deferred taxes will be recognized.
For more information on taxes see Note 21.
\nThe consolidated financial statements of Corbion nv have been prepared in accordance with the International Financial Reporting Standards (IFRS) adopted by the European Union.
\n", "dimensions": { "concept": "ifrs-full:StatementOfIFRSCompliance", "language": "en", "entity": "scheme:724500BKS1TSAVLTWG46", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00" } }, "E199": { "value": "\nIn 2023, Corbion applied all the new and amended standards and interpretations published by the International Accounting Standards Board (IASB) and the International Financial Reporting Interpretations Committee (IFRIC), if and insofar as these applied to Corbion and were effective as at 1 January 2023. Corbion did not have to change its accounting policies or make retrospective adjustments as a result of adopting these standards.
\n\n\nIFRS 17 Insurance Contracts
The new standard had no impact on the Group\u2019s consolidated financial statements.
\nDefinition of Accounting Estimates - Amendments to IAS 8
The amendments had no impact on the Group\u2019s consolidated financial statements.
\nDisclosure of Accounting Policies - Amendments to IAS 1 and IFRS Practice Statement 2
The amendments to IAS 1 and IFRS Practice Statement 2 Making Materiality Judgements provide guidance and examples to help entities apply materiality judgements to accounting policy disclosures. The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their \u2018significant\u2019 accounting policies with a requirement to disclose their \u2018material\u2019 accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures.
\nIn line with the amendments in IAS 1, specifically article 117, Corbion removed several accounting policy disclosures and standardized\u00a0information, or information that only duplicates or summarizes\u00a0the requirements of the IFRSs. The accounting policy information focuses on how Corbion has chosen alternatives in IFRS standards and how Corbion has applied the\u00a0requirements of the IFRSs to its own circumstances. Further, some information which was previously provided in the accounting policies section is now disclosed in the note it relates to.
\n\n\nThe amendments have had an impact on the Group\u2019s disclosures of accounting policies, but not on the measurement, recognition or presentation of any items in the Group\u2019s financial statements.
\n\nA number of amended standards are effective for annual periods beginning on or after 1 January 2024 and earlier application is permitted; however, Corbion has not yet adopted the amended standards in preparing these consolidated financial statements.
\n\nThe consolidation includes the financial data of Corbion nv and its group companies (together Corbion). All inter-company receivables, debts, and transactions have been eliminated. Group companies are companies in which Corbion nv exercises control. The results of acquisitions and divestments are recognized from the moment that control is obtained or transferred.
\n\nThe consolidated financial statements are in euros. The euro is Corbion nv\u2019s functional and presentation currency.\u00a0
\n\nLand, buildings, machinery and equipment, and other operating assets are valued at the acquisition price or the cost of production, subject to straight-line depreciation calculated over the estimated economic life, the estimated residual value, and any accumulated impairment losses. The cost of production includes the cost of materials and direct labor and an attributable part of the indirect costs. Land is not depreciated. Grants are deducted from the acquisition price or the production costs of the assets to which the grant relates. Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the expenditure will flow to Corbion. Depreciation methods, useful lives, and residual values are reviewed at each reporting date and adjusted if appropriate.
\n\nThe lease liability is initially measured at the present value of outstanding lease payments, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the group\u2019s incremental borrowing rate. Generally, Corbion uses its incremental borrowing rate as the discount rate.
\n\n\nPayments associated with short-term leases of equipment and vehicles and all leases of low-value assets are recognized on a straight-line basis as an expense in profit or loss.
\n\nInventories of raw materials, consumables, technical materials, and packaging are stated at the lower of cost (first in, first out) and net realizable value. Inventories of work in progress and finished products are stated at the lower of production cost and net realizable value. Total cost of production includes payroll costs and materials and an attributable part of the indirect production costs.
\n\nFinancial liabilities are classified as measured at amortized cost or fair value through profit and loss (FVTPL). A financial liability is classified as at FVTPL if it is classified as held-for-trading, if it is a derivative, or designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognized in profit or loss. Other financial liabilities are subsequently measured at amortized cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognized in profit or loss. Any gain or loss on derecognition is also recognized in profit or loss.
\n\n\nCorbion derecognizes a financial liability when its contractual obligations are discharged, cancelled, or expired. Corbion also derecognizes a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognized at fair value.
\n\n\nOn derecognition of a financial liability, the difference between the carrying amount derecognized and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss.
\n\nAn operating segment is an entity that engages in business activities from which it earns revenues and incurs expenses. All operating segments are reviewed regularly by the Executive Committee to make decisions about resources to be allocated to the segments and assess their performance for which discrete financial information is available.
\n\nNet sales comprises the proceeds of goods delivered to third parties less discounts and value-added tax.
\n\n\nRevenue from the sale of goods in the normal course of business is recognized at a point in time when the performance obligation is met and based on the amount of the transaction price that is allocated to the performance obligation. The transaction price is the amount of the consideration to which the company expects to be entitled in exchange for transferring the promised goods to the customer. The consideration expected by the company may include fixed and/or variable amounts which can be impacted by sales returns, trade discounts, and volume rebates. Revenue from the sale of goods is recognized when control of the asset is transferred to the buyer and only when it is highly probable that a significant reversal of revenue will not occur as uncertainties related to a variable consideration have been resolved.
\n\nThe consolidated cash flow statement is drawn up using the indirect method. The items in the consolidated income statement and consolidated statement of the financial position have been adjusted for changes that do not impact cash inflow and outflow in the reporting year. Cash flows in foreign currencies are translated to the functional currency at the average foreign exchange rates unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case cash flows are translated at the rate on the dates of the transactions.
\n\nCorbion makes use of accounting estimates and judgments. The inputs into our estimates and assumptions consider the climate-related matters on our critical accounting estimates. Corbion believes there is considerable uncertainty over these assumptions and how they will impact the business operations and the cash flow projections. The estimates and assumptions have been based on the available information and regulations in place as of 31 December 2023.
\n\n\nDescribed below are the estimates and judgments as at the balance sheet date that carry a substantial risk of a material adjustment to the book value of assets and liabilities in the next financial year.
\n\nCorbion has a process in place to identify all assets and liabilities acquired, including intangible fixed assets. The judgments made in identifying all acquired assets, determining the estimated fair value assigned to each class of assets acquired and liabilities assumed, as well as asset lives, can materially impact the results of operations. Estimated fair values are based on information available around the acquisition date and on expectations and assumptions of anticipated discounted cash flows that have been assessed as reasonable by Corbion.\u00a0
\n\nEvery year, Corbion tests the goodwill for impairment based on the higher of fair value less cost to sell and the value-in-use method. The value in use is calculated on the basis of estimates and judgments of the expected cash flows which are discounted on a WACC basis. For a description of the main estimates, valuation assumptions, and a sensitivity analysis of the applied assumptions see Note 12.
\n\n(In)tangible fixed assets are tested for sustained impairment if there is an indication of possible impairment. A key factor is the recoverable amount which is calculated on the basis of estimates and assumptions of anticipated discounted cash flows, on the one hand, and an estimate of the fair value less cost to sell, on the other. For more information on impairments see Notes 10 and 12.
\n\nActuarial calculations are used to determine provisions for group personnel arrangements and net receivables or obligations from group pension plans. These calculations use assumptions in respect of future developments in salary, mortality, staff turnover, return on investments et cetera. Changes to these estimates and assumptions can lead to actuarial gains and losses which are recognized in the consolidated statement of comprehensive income. For more information on the applied assumptions see Note 20.
\n\nCorbion is subject to various tax systems across the world. Estimates and judgments are used to determine the tax items in the financial statements. Interpretation differences in tax liabilities are also taken into account.
Pillar Two legislation has been enacted or substantively enacted in certain jurisdictions Corbion operates. The legislation will be effective for the Corbion\u2019s financial year beginning 1 January 2024. Corbion is in scope of the enacted or substantively enacted legislation and has performed an assessment of Corbion\u2019s potential exposure to Pillar Two income taxes. The assessment of the potential exposure to Pillar Two income taxes is based on the most recent tax filings, country-by-country reporting and financial statements for the constituent entities in Corbion. Based on the assessment, the Pillar Two effective tax rates in most of the jurisdictions in which Corbion operates are above 15%. However, there are a limited number of jurisdictions where the transitional safe harbor relief does not apply and the Pillar Two effective tax rate is close to 15%. Corbion does not expect a material exposure to Pillar Two income taxes in those jurisdictions and no deferred taxes will be recognized.
For more information on taxes see Note 21.
\nIn line with the management responsibilities and internal management reporting for its strategic decision-making process Corbion distinguishes between the segments Sustainable Food Solutions, Lactic Acid & Specialties, Algae Ingredients, and Incubator (together Core), and Non-core.
\n\n\nIn Sustainable Food Solutions, Corbion has evolved increasingly from an ingredients business into a solutions-oriented supplier for the world\u2019s leading food manufacturers.
\n\n\nIn our Lactic Acid & Specialties business, we aim to capitalize on our market and technology leadership in lactic acid and lactic acid derivatives. Corbion leads the lactic acid market in technology, production capacity, geographic coverage, and breadth of portfolio.
\n\n\nIn our Algae Ingredients business, we\u00a0leverage our expertise in large-scale industrial fermentation, anticipating significant further growth and profitability as a global supplier of algae-based ingredients providing nutritional benefits for human and animal diets, such as long-chain omega-3.\u00a0
\n\n\nIn our Incubator, where we develop early-stage initiatives, we work on five selected platforms: Algae Portfolio Extension, Biopolymers, Natural Preservation, Circular Raw Materials, and Net Zero. These long-term platforms are all linked to one of the three business units and embedded in their innovation programs.\u00a0
\n\n\nNon-core activities comprise emulsifiers.
\n\n\nTransfer prices between operating segments are on an arm\u2019s length basis in a manner similar to transactions with third parties.
\n| \u00a0 | Sustainable Food Solutions | Lactic Acid & Specialties | Algae Ingredients | Incubator | Core 1 | Non-core | Corbion total operations | |||||||
| \u00a0 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 |
Income statement information | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Net sales | 768.7 | 780.0 | 383.9 | 400.1 | 111.4 | 74.3 | \u00a0 | \u00a0 | 1,264.0 | 1,254.4 | 179.8 | 203.5 | 1,443.8 | 1,457.9 |
Operating result | 37.8 | 62.8 | 54.3 | 47.6 | 23.6 | -13.4 | -11.3 | -10.0 | 104.4 | 87.0 | 12.8 | 23.8 | 117.2 | 110.8 |
Adjustments to operating result | 1.4 | -6.8 | 1.0 | 0.6 | -17.0 | 2.4 | \u00a0 | 0.8 | -14.6 | -3.0 | 4.6 | 0.2 | -10.0 | -2.8 |
Adjusted operating result | 39.2 | 56.0 | 55.3 | 48.2 | 6.6 | -11.0 | -11.3 | -9.2 | 89.8 | 84.0 | 17.4 | 24.0 | 107.2 | 108.0 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Alternative non-IFRS performance measures | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
EBITDA | 82.9 | 102.7 | 75.4 | 66.1 | 6.8 | -5.7 | -8.5 | -10.0 | 156.6 | 153.1 | 23.5 | 34.1 | 180.1 | 187.2 |
Adjustments to EBITDA | 1.4 | -6.8 | 1.0 | 0.6 | 4.7 | 2.4 | \u00a0 | 0.8 | 7.1 | -3.0 | 4.6 | 0.2 | 11.7 | -2.8 |
Adjusted EBITDA | 84.3 | 95.9 | 76.4 | 66.7 | 11.5 | -3.3 | -8.5 | -9.2 | 163.7 | 150.1 | 28.1 | 34.3 | 191.8 | 184.4 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Ratios alternative non-IFRS performance measures | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
EBITDA margin % | 10.8 | 13.2 | 19.6 | 16.5 | 6.1 | -7.7 | \u00a0 | \u00a0 | 12.4 | 12.2 | 13.1 | 16.8 | 12.5 | 12.8 |
Adjusted EBITDA margin % | 11.0 | 12.3 | 19.9 | 16.7 | 10.3 | -4.4 | \u00a0 | \u00a0 | 13.0 | 12.0 | 15.6 | 16.9 | 13.3 | 12.6 |
\nCorbion generates almost all of its revenues from the sale of goods.
\n\nIn the above table and elsewhere in the financial statements a number of non-IFRS performance measures are presented. Management is of the opinion that these so-called alternative performance measures might be useful for the readers of these financial statements. Corbion management uses these performance measures to make financial, operational, and strategic decisions and evaluate performance of the segments.\u00a0
\n\n\nThe alternative performance measures can be calculated as follows:
\n\nEBITDA is the operating result before depreciation, amortization, and (reversal of) impairment of (in)tangible fixed assets.
\n\n\nEBITDA margin is EBITDA divided by net sales x 100.
\n\n| \u00a0 | Net sales | |
| \u00a0 | 2023 | 2022 |
The Netherlands | 38.8 | 33.5 |
Rest of EMEA | 279.4 | 277.1 |
US | 654.0 | 674.2 |
Rest of North America | 46.6 | 44.5 |
Latin America | 213.2 | 193.8 |
Asia | 211.8 | 234.8 |
Corbion total operations | 1,443.8 | 1,457.9 |
\nThe above sales information is based on the location of the customer.\u00a0
\n| \u00a0 | Non-current assets | |
| \u00a0 | 2023 | 2022 |
The Netherlands | 200.0 | 214.4 |
Rest of EMEA | 32.6 | 30.7 |
US | 303.8 | 304.9 |
Rest of North America | 8.6 | 9.8 |
Brazil | 138.0 | 103.7 |
Thailand | 286.4 | 252.9 |
Rest of Asia | 4.0 | 4.6 |
Corbion total operations | 973.4 | 921.0 |
\nThe above information is based on the geographical location of the assets. Non-current assets exclude those relating to financial instruments, deferred tax assets, and post-employment benefit assets.
\n\n\nAt year end 2023, Corbion had a total number of employees (FTEs) of 2,727 of which 678 in the Netherlands, 206 in the rest of Europe, 935 in North America, 532 in Latin America and 376 in Asia. At year end 2022, Corbion had a total number of employees (FTEs) of 2,601, of which 643 in the Netherlands, 200 in the rest of Europe, 897 in North America, 526 in Latin America and 335 in Asia.
\n\n| \u00a0 | Net sales | |
| \u00a0 | 2023 | 2022 |
Preservation | 350.4 | 357.1 |
Functional systems | 340.4 | 330.6 |
Single ingredients | 77.9 | 92.3 |
Sustainable Food Solutions | 768.7 | 780.0 |
Lactic acid | 158.6 | 169.1 |
Lactate esters | 65.9 | 83.6 |
Lactates | 72.5 | 59.7 |
Biopolymers | 55.3 | 49.2 |
Other | 31.6 | 38.5 |
Lactic Acid & Specialties | 383.9 | 400.1 |
Algae Ingredients | 111.4 | 74.3 |
Incubator | 0.0 | 0.0 |
Non-core activities | 179.8 | 203.5 |
Corbion total operations | 1,443.8 | 1,457.9 |
\nFulfillment of the performance obligations related to goods sold is measured using the commercial shipment terms as an\u00a0indicator for the transfer of control. Fulfillment of the performance obligations for services rendered is identified\u00a0according to the individual contract. The payment terms are determined per business segment on a customer basis. Corbion\u00a0has neither specific obligations for returns or refunds, nor specific warranties or other related obligations.
\n\n| \u00a0 | 2023 | 2022 |
|---|---|---|
Remeasurement contingent purchase price SB Renewable Oils | -5.2 | -2.3 |
Bookprofit sale Totowa warehouse | \u00a0 | 9.7 |
Bookprofit on sale of a plot of land in the Dutch municipality of Breda | \u00a0 | -0.2 |
Total | -5.2 | 7.2 |
| \u00a0 | 2023 | 2022 |
Payroll | 188.3 | 194.1 |
Pension expenses \u2013 defined benefit pension plans | 0.3 | 0.5 |
Pension expenses \u2013 defined contribution pension plans | 14.3 | 14.6 |
Other social insurance | 21.9 | 20.5 |
Share-based remuneration | 4.1 | 4.8 |
Total | 228.9 | 234.5 |
| \u00a0 | 2023 | 2022 |
Depreciation of tangible fixed assets | 66.2 | 60.7 |
Amortization of intangible fixed assets | 18.4 | 15.7 |
Reversal of impairment of (in)tangible fixed assets | -21.7 | \u00a0 |
Total | 62.9 | 76.4 |
\nReference is made to Note 10. for further details on the reversal of impairment.
\n\n| \u00a0 | 2023 | 2022 |
Interest income | -6.4 | -3.4 |
Interest charges | 28.7 | 14.8 |
Exchange rate differences | 4.0 | -9.1 |
Interest expense on defined benefit pension plans - net | 0.1 | \u00a0 |
Capitalized borrowing costs | -4.2 | -1.6 |
Unwinding of contingent consideration | 2.6 | 1.2 |
Interest expense on lease liabilities | 2.5 | 2.6 |
Other | 1.1 | 0.8 |
Total | 28.4 | 5.3 |
| \u00a0 | 2023 | 2022 |
Current tax | 13.4 | 20.4 |
Current tax (prior-year adjustments) | -0.9 | -0.2 |
Deferred tax | -0.1 | 6.2 |
Tax charge (income) | 12.4 | 26.4 |
| \u00a0 | 2023 | 2022 |
Result before taxes | 85.3 | 116.4 |
Applicable tax charge at average statutory tax rate | 23.6 | 28.2 |
Income not subject to tax | 0.7 | -4.1 |
Expenses not deductible for tax purposes | 3.6 | 2.5 |
Effect of the reversal of tax assets | -9.1 | 1.1 |
Currency effects | -4.0 | -0.3 |
Other effects | -2.4 | -1.0 |
Tax charge (income) | 12.4 | 26.4 |
Average tax rate on operations | 14.5% | 22.7% |
\nThe average statutory tax rate is the average of the statutory tax rates in the countries where Corbion operates, weighted on the basis of the result before taxes in each of these countries.
\n\n\nThe main impact of income not subject to tax is caused by the negative result recognized with respect to the joint venture with TotalEnergies which is not subject to tax under the provisions of the participation exemption (impact \u20ac 0.8 million).
\n\n\nExpenses not deductible for tax purposes include the effect of non-deductible costs in multiple jurisdictions (impact \u20ac 3.6 million).
\n\n\nThe effect of the reversal of tax assets is caused by the recognition of previously unrecognized deferred tax assets in Brazil (\u20ac -9.1 million) related to the reversal of the impairment of the plant in Brazil.
\n\n\nThe impact of currency effects (\u20ac -4.0 million) is caused by reporting entities which have a tax reporting currency which deviates from their functional currency.
\n\n\nOther effects include adjustments in respect of current-year events and the impact of changes to relevant regulations, facts, or other factors compared to those used in establishing the current tax position or deferred tax balance in previous years (impact \u20ac -2.4 million).
\n\n\nThe realization of deferred tax assets depends on the expected future profitability. Deferred tax assets are not recognized if it is not probable that a tax benefit can be realized.
\n\n\nEarnings per ordinary share are calculated by dividing the profit available for holders of ordinary shares by the weighted average number of outstanding ordinary shares in Corbion nv.
\n\n\nDiluted earnings per ordinary share are calculated by dividing the profit available for holders of ordinary shares by the weighted average number of outstanding ordinary shares in Corbion nv adjusted for the effects of potential exercise of share rights by the Board of Management and senior management.
\n| \u00a0 | 2023 | 2022 |
Result after taxes | 72.9 | 90.0 |
Profit available for holders of ordinary shares (A) | 72.9 | 90.0 |
| \u00a0 | \u00a0 | \u00a0 |
Weighted average number of outstanding ordinary shares (B) | 59.1 | 59.0 |
Plus: ordinary shares related to share rights | 0.6 | 0.5 |
Weighted average number of outstanding ordinary shares after dilution (C) | 59.7 | 59.5 |
| \u00a0 | \u00a0 | \u00a0 |
Per ordinary share in euros | \u00a0 | \u00a0 |
Basic earnings (A/B) | 1.23 | 1.53 |
Diluted earnings (A/C) | 1.22 | 1.51 |
| \u00a0 | Land | Buildings | Machinery and equipment | Other fixed assets | Under construction | Total |
1\u00a0January 2022 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Acquisition prices | 14.3 | 189.8 | 707.0 | 63.6 | 154.0 | 1,128.7 |
Cumulative depreciation/impairments | \u00a0 | -92.0 | -522.1 | -47.8 | \u00a0 | -661.9 |
Book value | 14.3 | 97.8 | 184.9 | 15.8 | 154.0 | 466.8 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Movements | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Capital expenditure | \u00a0 | \u00a0 | 1.3 | 2.3 | 212.7 | 216.3 |
Divestments | \u00a0 | \u00a0 | -0.4 | -0.1 | \u00a0 | -0.5 |
Exchange rate differences | 0.8 | 6.9 | 9.0 | 1.3 | 6.9 | 24.9 |
Depreciation | \u00a0 | -6.7 | -35.6 | -4.4 | \u00a0 | -46.7 |
Other | \u00a0 | 6.3 | 61.7 | 2.4 | -70.1 | 0.3 |
Net movement in book value | 0.8 | 6.5 | 36.0 | 1.5 | 149.5 | 194.3 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
31\u00a0December 2022 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Acquisition prices | 15.1 | 207.8 | 794.5 | 71.4 | 303.5 | 1,392.3 |
Cumulative depreciation/impairments | \u00a0 | -103.5 | -573.6 | -54.1 | \u00a0 | -731.2 |
Book value | 15.1 | 104.3 | 220.9 | 17.3 | 303.5 | 661.1 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Movements | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Capital expenditure | \u00a0 | \u00a0 | 0.2 | 0.2 | 124.2 | 124.6 |
Divestments | \u00a0 | \u00a0 | -0.1 | -0.1 | -0.2 | -0.4 |
Exchange rate differences | -0.5 | -2.2 | -3.6 | \u00a0 | -11.2 | -17.5 |
Depreciation | \u00a0 | -6.9 | -40.4 | -4.3 | \u00a0 | -51.6 |
Reversal of impairment | \u00a0 | 12.8 | 8.9 | \u00a0 | \u00a0 | 21.7 |
Other | -0.6 | -5.6 | 57.2 | 13.4 | -62.9 | 1.5 |
Net movement in book value | -1.1 | -1.9 | 22.2 | 9.2 | 49.9 | 78.3 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
31\u00a0December 2023 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Acquisition prices | 14.0 | 218.0 | 835.1 | 63.5 | 353.4 | 1,484.0 |
Cumulative depreciation/impairments | \u00a0 | -115.6 | -592.0 | -37.0 | \u00a0 | -744.6 |
Book value | 14.0 | 102.4 | 243.1 | 26.5 | 353.4 | 739.4 |
Depreciation rates | \u00a0 | 2.5 - 4% | 6.7-12.5% | 20-50% | \u00a0 | \u00a0 |
\nIn 2023, no impairments were recorded.
\n\n\nFor the Algae Ingredients business, management has identified triggers to reassess the valuation of\u00a0tangible fixed assets because of improved business performance. The cash flow projections are derived from\u00a0the financial and business plans for 2024 onwards which have been approved by the Board of Management. The\u00a0key assumptions in the cash flow projections are related to revenue projections, EBITDA developments,\u00a0the rates used for discounting cash flows and the terminal growth rate. In 2023, a full reversal (not exceeding the difference between the current carrying amount and the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognized for the asset) of the previously recorded impairment was recognized. The impairment reversal recorded amounts to \u20ac 21.7 million, the pre-tax discount rate used is 15.3% (2022: 20.3%).
\n\n\nIn 2022, no impairments were recorded.
\n\n\nThe Other line item relates to transfers from Under construction to other categories within Property, plant, and equipment and transfers to intangible fixed assets and inventories.
\n\n| \u00a0 | Land | Buildings | Machinery and equipment | Other fixed assets | Total |
Book value 31\u00a0December 2022 | 0.2 | 57.6 | 1.0 | 9.6 | 68.4 |
Additions | \u00a0 | 2.3 | 0.4 | 2.0 | 4.7 |
Modification to lease term | \u00a0 | 1.2 | 0.2 | 1.6 | 3.0 |
Exchange rate differences | \u00a0 | -2.3 | \u00a0 | -0.2 | -2.5 |
Depreciation | \u00a0 | -9.4 | -0.7 | -4.5 | -14.6 |
Book value 31\u00a0December 2023 | 0.2 | 49.4 | 0.9 | 8.5 | 59.0 |
\nThe maturity of the lease liabilities is as follows.
\n| \u00a0 | As at 31-12-2023 | As at 31-12-2022 |
Current | 12.5 | 12.3 |
Non-current | 52.4 | 61.2 |
Total lease liabilities | 64.9 | 73.5 |
\nCorbion's main leases are contracts for office locations, warehouses, and leased vehicles (the main category in Other fixed assets). Some property leases contain extension options exercisable by Corbion. Corbion assesses at the lease commencement date whether it is reasonably certain that the extension options will be exercised. Corbion reassesses whether it is reasonably certain that the extension options will be exercised if there is a significant event or significant change in circumstances within its control. As at 31 December 2023, potential future undiscounted cash outflows of \u20ac 76.5 million (31 December 2022: \u20ac 80.8 million) have not been included in the lease liability because it is not reasonably certain that the leases will be extended. Lease payments are in substance fixed and Corbion had no leases with variable lease payments.
\n\n| \u00a0 | Goodwill | Customer base | Brands and licenses | Development costs | Other intangible fixed assets | Total |
1 January 2022 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Acquisition prices | 81.0 | 25.6 | 34.1 | 47.9 | 75.5 | 264.1 |
Cumulative amortization/impairments | -3.3 | -19.5 | -29.7 | -17.2 | -36.5 | -106.2 |
Book value | 77.7 | 6.1 | 4.4 | 30.7 | 39.0 | 157.9 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Movements | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Capital expenditure | \u00a0 | \u00a0 | \u00a0 | 0.7 | 13.9 | 14.6 |
Exchange rate differences | 5.8 | 0.7 | 0.2 | 0.2 | 0.2 | 7.1 |
Amortization | \u00a0 | -1.0 | -0.6 | -3.7 | -10.4 | -15.7 |
Other | \u00a0 | \u00a0 | \u00a0 | -0.3 | \u00a0 | -0.3 |
Net movement in book value | 5.8 | -0.3 | -0.4 | -3.1 | 3.7 | 5.7 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
31\u00a0December 2022 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Acquisition prices | 87.0 | 27.2 | 34.8 | 49.2 | 90.1 | 288.3 |
Cumulative amortization/impairments | -3.5 | -21.4 | -30.8 | -21.6 | -47.4 | -124.7 |
Book value | 83.5 | 5.8 | 4.0 | 27.6 | 42.7 | 163.6 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Movements | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Capital expenditure | \u00a0 | \u00a0 | \u00a0 | 0.7 | 14.2 | 14.9 |
Exchange rate differences | -2.2 | \u00a0 | -0.1 | -0.1 | \u00a0 | -2.4 |
Amortization | \u00a0 | -0.9 | -0.5 | -2.4 | -14.6 | -18.4 |
Other | \u00a0 | \u00a0 | \u00a0 | -1.7 | 0.4 | -1.3 |
Net movement in book value | -2.2 | -0.9 | -0.6 | -3.5 | 0.0 | -7.2 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
31\u00a0December 2023 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Acquisition prices | 84.7 | 26.8 | 34.2 | 47.4 | 91.0 | 284.1 |
Cumulative amortization/impairments | -3.4 | -21.9 | -30.8 | -23.3 | -48.3 | -127.7 |
Book value | 81.3 | 4.9 | 3.4 | 24.1 | 42.7 | 156.4 |
Amortization rates | \u00a0 | 7 - 20% | 5 - 10% | 5 - 33.3% | 33.3% | \u00a0 |
\nGoodwill is allocated to Corbion's cash-generating units identified as the operating segments. The operating segments Sustainable Food Solutions and Lactic Acid & Specialties represent the levels to which company goodwill is allocated for the purposes of impairment testing. The Algae Ingredients and Incubator segments do not contain any goodwill.
\n\n\nKey reasons for this approach are:
\n\nIt represents a non-arbitrary, reasonable, and consistent basis for the allocation of goodwill.
\n\n\nThe allocation is in line with the expected synergies at the time of an acquisition with benefits for more than one entity.
\n\n\nThe allocation represents the lowest level where goodwill is monitored by the Executive Committee, while not being larger than the operating segments.
\n\n| \u00a0 | As at 31-12-2023 | As at 31-12-2022 |
Sustainable Food Solutions | 79.1 | 81.3 |
Lactic Acid & Specialties | 2.2 | 2.2 |
Total operations | 81.3 | 83.5 |
\nThe recoverable amount of both segments is determined using a value-in-use method. The main assumptions used are derived from the financial and business plans for 2024 which have been approved by the Board of Management. From 2025 onwards a stable growth of 1% (consistent with the goodwill impairment test in prior year) is taken into account in combination with a relatively constant cost structure.
\n\n\nThe future cash flows are discounted on the basis of the WACC before tax.
\n| \u00a0 | As at 31-12-2023 | \u00a0 | As at 31-12-2022 | \u00a0 |
| \u00a0 | pre-tax | post-tax | pre-tax | post-tax |
Sustainable Food Solutions | 10.0% | 8.3% | 10.4% | 8.4% |
Lactic Acid & Specialties | 11.3% | 9.6% | 11.9% | 9.5% |
\nIn addition, sensitivity analyses have been carried out in respect of the assumptions using:
\n\nterminal value growth of 0%;
\n\n\na discount rate of +1%.
\n\n\nBoth assumptions applicable at the same time would not lead to any impairment.
\n\n\nGiven the above assumptions and the outcome of analyses, the Board of Management has concluded that the value in use of both segments is not lower than the book value of the segments including goodwill.
\n\nThe customer base comprises the part of the paid acquisition sum which, upon acquisition, is allocated to the value of the acquired customer base. It is valued at fair value as at the acquisition date and amortized using a straight-line method over the estimated economic life. Amortization charges arising from the customer base are recognized in selling expenses.
\n\nBrands and licenses comprise the part of the paid acquisition sum which is allocated to the value of the acquired trademarks and product licenses. Brands and licenses are valued at fair value as at the acquisition date and subject to straight-line amortization calculated over the estimated economic life. Amortization charges arising from brands and licenses are recognized in selling expenses.
\n\nResearch and development costs comprise the part of the paid acquisition sum which is allocated to the value of the acquired research and development costs. These costs are valued at fair value as at the acquisition date. Own research costs are not capitalized, but charged to the income statement. Own development costs are capitalized only if the expenditure can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable and Corbion intends to and has sufficient resources to complete development and to use or sell the assets. Otherwise, it is recognized in profit or loss as incurred. Research and development costs are valued at cost and amortized using a straight-line method over the estimated economic life. Amortization charges arising from research and development costs are recognized in research and development costs.
\n\nOther intangible fixed assets consist primarily of capitalized or acquired third-party software and licenses and directly attributable personnel costs.\u00a0Other intangible fixed assets are valued at historical cost if capitalized or at fair value if acquired and amortized on a straight-line basis over the estimated economic life. Software and licenses amortization charges are recognized in general and administrative expenses. Emission rights are not recognized in the statement of financial position as cost is zero.
\nSet out below are the associates and joint ventures of the group as at 31 December 2023 which, in the opinion of management, are material to the group. The entity listed below has share capital consisting solely of ordinary shares, which are held directly by the group. The proportion of ownership interest is the same as the proportion of voting rights held.
\nName of entity | Country of incorporation | % of ownership interest | Nature of relationship | Measurement method | Carrying amount | |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 2023 | 2022 |
TotalEnergies Corbion bv | The Netherlands | 50% | Joint venture | Equity method | 18.6 | 27.9 |
\nTotalEnergies Corbion bv is a global leader in marketing, sale, and production of PolyLactic Acid (PLA). The principal places of business are the Netherlands for marketing and sales activities and Thailand for the main production activities.
\n\n\nAs it is a private entity, no quoted fair value price is available.
\n\n\nThe tables below provide summarized financial information on the joint ventures and associates that are material to the group. The information disclosed reflects the amounts presented in the financial statements of the respective joint ventures and associates, rather than Corbion's share of those amounts. They have been amended to reflect adjustments made by the entity when using the equity method, including fair value adjustments and modifications for differences in accounting policy.\u00a0Unrealized gains on transactions between Corbion and its joint ventures and associates are eliminated to the extent of Corbion\u2019s stake in these investments. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the assets transferred.
\nTotalEnergies Corbion bv | 2023 | 2022 |
| \u00a0 | \u00a0 | \u00a0 |
Current assets | \u00a0 | \u00a0 |
Cash and cash equivalents | 16.2 | 15.1 |
Other current assets | 53.1 | 61.2 |
Total current assets | 69.3 | 76.3 |
Non-current assets | 124.3 | 138.0 |
Current liabilities | \u00a0 | \u00a0 |
Other current liabilities | 19.4 | 17.7 |
Total current liabilities | 19.4 | 17.7 |
Non-current liabilities | 131.5 | 137.0 |
Net assets | 42.7 | 59.6 |
| \u00a0 | \u00a0 | \u00a0 |
Reconciliation to carrying amounts | \u00a0 | \u00a0 |
| \u00a0 | \u00a0 | \u00a0 |
Opening net assets | 59.6 | 49.4 |
Comprehensive income for the period | -5.6 | 21.4 |
Dividends declared | -9.2 | -14.2 |
Exchange rate differences | -2.1 | 3.0 |
Closing net assets | 42.7 | 59.6 |
| \u00a0 | \u00a0 | \u00a0 |
Group's share (50%) | 21.4 | 29.8 |
Elimination of unrealized profit on downstream sales | -2.8 | -1.9 |
Carrying amount | 18.6 | 27.9 |
| \u00a0 | \u00a0 | \u00a0 |
Summarized statement of comprehensive income | \u00a0 | \u00a0 |
| \u00a0 | \u00a0 | \u00a0 |
Revenue | 118.1 | 165.8 |
Operating result | -0.6 | 36.0 |
Depreciation and amortization | -6.3 | -6.8 |
Impairment | -13.6 | \u00a0 |
Interest expense | -10.5 | -6.7 |
Income tax expense | 4.1 | -7.5 |
| \u00a0 | \u00a0 | \u00a0 |
Profit for the period | -6.9 | 21.8 |
Other comprehensive income | 1.3 | -0.4 |
Total comprehensive income | -5.6 | 21.4 |
| \u00a0 | \u00a0 | \u00a0 |
Dividends received by Corbion | 4.6 | 14.3 |
| \u00a0 | As at 31-12-2023 | As at 31-12-2022 |
Loans granted to joint venture TotalEnergies Corbion bv | 61.9 | 64.6 |
Long-term tax receivables | 36.6 | 32.7 |
Other | 4.2 | 2.1 |
Total | 102.7 | 99.4 |
\nLong-term tax receivables consist of value added tax receivables. Recoverability and timing thereof are subject to uncertainty and dependent on external factors.
\n\n| \u00a0 | As at 31-12-2023 | As at 31-12-2022 |
Raw materials, consumables, technical materials, and packaging | 91.4 | 93.7 |
Work in progress | 17.2 | 17.4 |
Finished product | 162.4 | 226.8 |
Impairment provision | -8.1 | -6.7 |
Total | 262.9 | 331.2 |
\nIn 2023, inventories of \u20ac 748.7 million (2022: \u20ac 739.2 million) were recognized as an expense during the year and included in 'cost of sales'.\u00a0During 2023, \u20ac 7.2 million (2022: \u20ac 6.2 million) was recognized as an expense for inventories carried at net realizable value. This is recognized in 'cost of sales'.
\n\n| \u00a0 | As at 31-12-2023 | As at 31-12-2022 |
Trade receivables | 201.8 | 211.8 |
Impairment provision | -0.9 | -1.3 |
Total trade receivables | 200.9 | 210.5 |
Other receivables | 23.1 | 30.2 |
Derivatives | 0.4 | 3.7 |
Prepayments and accrued income | 14.2 | 12.0 |
Total other receivables | 37.7 | 45.9 |
Total receivables | 238.6 | 256.4 |
\nTrade receivables are not interest-bearing and generally have an average term of credit of 30-90 days. The group applies the IFRS 9 simplified approach to measuring expected credit losses, which uses a lifetime expected loss allowance for all trade receivables.
\n| \u00a0 | Total | < 30 days | 30-60 days | 60-90 days | > 90 days |
Sustainable Food Solutions | 23.5 | 18.9 | 1.8 | 0.9 | 1.9 |
Lactic Acid & Specialties | 9.6 | 7.7 | 0.7 | 0.4 | 0.8 |
Algae Ingredients | 2.7 | 2.2 | 0.2 | 0.1 | 0.2 |
Incubator | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Total | 35.8 | 28.8 | 2.7 | 1.4 | 2.9 |
| \u00a0 | 2023 | 2022 |
As at 1 January | -1.3 | -1.2 |
Additions/releases | -0.3 | -0.9 |
Use | 0.6 | 0.8 |
Exchange rate differences | 0.1 | \u00a0 |
As at 31 December | -0.9 | -1.3 |
\nThe additions to / releases from the trade receivables impairment provision are recognized as selling expenses.
\n\n| \u00a0 | As at 31-12-2023 | As at 31-12-2022 |
Cash and bank balances | 70.2 | 58.2 |
Short-term deposits | \u00a0 | \u00a0 |
Total | 70.2 | 58.2 |
\nThere are no significant cash and cash equivalent balances held by the entity that are not\u00a0available for use by the group.
\n\n\nAs at 31 December 2023, the authorized share capital totaled \u20ac\u00a045.5 million, consisting of 182 million ordinary shares with a nominal value of \u20ac\u00a00.25 each.
\n| \u00a0 | Ordinary shares |
As at 1\u00a0January 2023 | 59,242,792 |
As at 31\u00a0December 2023 | 59,242,792 |
| \u00a0 | Ordinary shares |
As at 1 January 2023 | 59,012,918 |
Share-based remuneration | 78,031 |
As at 31\u00a0December 2023 | 59,090,949 |
| \u00a0 | Number |
As at 1\u00a0January 2023 | 229,874 |
Share-based remuneration | -78,031 |
As at 31\u00a0December 2023 | 151,843 |
\nAs at 31\u00a0December 2023, Corbion had a treasury stock of 151,843 ordinary shares at its disposal with a nominal value of \u20ac 0.25 each (representing 0.26% of the total share capital issued). Treasury stock shares have no dividend rights.
\n| \u00a0 | Movements in legal reserves | \u00a0 | \u00a0 | ||
| \u00a0 | Translation reserve | Hedge reserve | Development costs | Share plan reserve | Total |
As at 1 January 2022 | 8.8 | 8.1 | 30.7 | 6.3 | 53.9 |
\u2022 Net investment hedge | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
- Exchange rate differences foreign currency loan | -16.8 | \u00a0 | \u00a0 | \u00a0 | -16.8 |
- Tax effect | 4.3 | \u00a0 | \u00a0 | \u00a0 | 4.3 |
\u2022 Translation difference | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
- Foreign group companies | 28.2 | \u00a0 | \u00a0 | \u00a0 | 28.2 |
- Tax effect | -0.3 | \u00a0 | \u00a0 | \u00a0 | -0.3 |
\u2022 Cash flow hedge | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
- Fluctuations in fair value derivatives | \u00a0 | -7.0 | \u00a0 | \u00a0 | -7.0 |
- Tax effect | \u00a0 | 1.7 | \u00a0 | \u00a0 | 1.7 |
\u2022 Share-based remuneration charged to result | \u00a0 | \u00a0 | \u00a0 | 4.8 | 4.8 |
\u2022 Share-based remuneration transfers | \u00a0 | \u00a0 | \u00a0 | -3.8 | -3.8 |
\u2022 Movement in capitalization of development costs | \u00a0 | \u00a0 | -3.1 | \u00a0 | -3.1 |
As at 31\u00a0December 2022 | 24.2 | 2.8 | 27.6 | 7.3 | 61.9 |
\u2022 Net investment hedge | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
- Exchange rate differences foreign currency loan | 11.5 | \u00a0 | \u00a0 | \u00a0 | 11.5 |
- Tax effect | -3.0 | \u00a0 | \u00a0 | \u00a0 | -3.0 |
\u2022 Translation difference | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
- Foreign group companies | -28.9 | \u00a0 | \u00a0 | \u00a0 | -28.9 |
- Tax effect | -0.1 | \u00a0 | \u00a0 | \u00a0 | -0.1 |
\u2022 Cash flow hedge | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
- Fluctuations in fair value derivatives | \u00a0 | -16.0 | \u00a0 | \u00a0 | -16.0 |
- Tax effect | \u00a0 | 4.1 | \u00a0 | \u00a0 | 4.1 |
\u2022 Share-based remuneration charged to result | \u00a0 | \u00a0 | \u00a0 | 4.1 | 4.1 |
\u2022 Share-based remuneration transfers | \u00a0 | \u00a0 | \u00a0 | -4.5 | -4.5 |
\u2022 Movement in capitalization of development costs | \u00a0 | \u00a0 | -3.5 | \u00a0 | -3.5 |
As at 31\u00a0December 2023 | 3.7 | -9.1 | 24.1 | 6.9 | 25.6 |
\nIn specific circumstances legal reserves must be created in accordance with Part 9, Book 2 of the Dutch Civil Code. The legal reserves comprise the translation reserve, hedge reserve, and development cost reserve.\u00a0Legal reserves cannot be distributed to shareholders.
\n\n\nA reserve for non-transferable profits is not applicable as Corbion has no restrictions to transfer profits from its operations in the different countries.
\n\nThe translation reserve comprises all foreign currency differences arising from the translation of the financial statements of foreign operations, as well as the effective portion of any foreign currency differences arising from hedges of a net investment in a foreign operation.
\n\nThe hedge reserve comprises the effective portion of the cumulative net change in the fair value of hedging instruments used in cash flow hedges pending subsequent recognition in profit or loss as the hedged cash flows or items affect profit or loss.
\n\nThe development cost reserve comprises a\u00a0statutory reserve\u00a0for capitalized development expenditure in accordance with the Dutch Civil Code.
\n\nThe share plan reserve comprises all movements in equity-settled share-based remuneration plans.
\n\nFor the year 2023, a regular dividend in cash of \u20ac 0.61 per ordinary share (2022: \u20ac 0.56), in total \u20ac 36.0 million (2022: \u20ac 33.1 million) will be submitted for approval to the annual General Meeting of Shareholders, to be held on 15 May 2024.\u00a0Proposed dividends on ordinary shares\u00a0are subject to approval at the annual General Meeting of Shareholders and are not recognized as a liability as at 31 December.
\n\n| \u00a0 | As at 31-12-2023 | As at 31-12-2022 |
Reorganization and restructuring | 0.3 | 0.4 |
Other | 4.4 | 9.5 |
Total | 4.7 | 9.9 |
| \u00a0 | Reorganization and restructuring | Other | Total |
As at 1\u00a0January 2023 | 0.4 | 9.5 | 9.9 |
Addition charged to result | 0.8 | 1.3 | 2.1 |
Release credited to result | -0.1 | -0.4 | -0.5 |
Withdrawal for intended purpose | -0.8 | -5.8 | -6.6 |
Exchange rate differences | \u00a0 | -0.2 | -0.2 |
As at 31\u00a0December 2023 | 0.3 | 4.4 | 4.7 |
\nRestructuring provisions are recognized only when Corbion has a constructive obligation, which is when:
(i) there is a detailed formal plan that identifies the business or part of the business concerned, the location\u00a0and number of employees affected, the detailed estimate of the associated costs, and the timeline; and
(ii) the employees affected have been notified of the plan\u2019s main features.
\nDuring its Capital Markets update on 31 January 2024, Corbion announced a restructuring plan involving a reduction of around 200 positions. Since no constructive obligation existed at year end 2023, no provision for restructuring was formed at year end 2023.
\n\n\n
\n\nThe other provisions relate mainly to loss-making contracts, legal disputes, and other litigation risks.\u00a0
\n\n| \u00a0 | As at 31-12-2023 | As at 31-12-2022 |
Net defined benefit asset | -0.1 | -0.1 |
Net defined benefit liability | 2.4 | 2.5 |
Other long-term employee benefit commitments | 1.3 | 1.5 |
Total | 3.6 | 3.9 |
\nNet defined benefit assets and liabilities relate to post-employment defined benefit arrangements.
\n\nOther long-term employee benefit commitments relate mainly to anniversary commitments, conditional incentive plans, and health insurance.
\n\nCorbion sponsors defined benefit pension plans in the US and the UK. Both plans are closed schemes and based on final pay. Further, Corbion sponsors a legal severance payment plan in Thailand. All plans have been established in accordance with the legal requirements of the countries involved. The defined benefit plans are administered by a separate fund that is legally separated from the entity. The board of the pension fund is composed of an equal number of representatives from both employers and (former) employees.
\n\n\nThe plans typically expose the group to actuarial risks such as investment risk, interest rate risk, and longevity risk.
\n\nInvestment risk -\u00a0The present value of the defined benefit plan liability is calculated using a discount rate determined by reference to high-quality corporate bond yields; if the return on plan assets falls below this rate, it will create a plan deficit.
\n\n\nInterest rate risk -\u00a0A decrease in the bond interest rate will increase the plan liability; however, this will be partly offset by an increase in the return on the plan's debt investments.
\n\n\nLongevity risk -\u00a0The present value of the defined benefit liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan's liability.
\n\n\nThe defined benefit obligation as per year-end consisted almost entirely of the UK plan and is summarized below:
\n\nThe Normal Retirement Age (NRA) is 65; however, Section 1 members are able to take their benefits in respect of pre 1 October 2003 service unreduced from age 60.
\n\n\nPensions in deferment increase in line with statutory revaluation with the exception of pre 1 October 2003 benefits for Section 1 members, which have an underpin linked to the level of pension increases in payment (which are linked to the Consumer Price Index (CPI)).
\n\n\nPensions in payment increase in line with CPI capped at 5% for benefits in respect of pre 1 January 2006 service and CPI capped at 2.5% for benefits in respect of post 31 December 2005 service.\t
\n\n\nIn 2021, an insurance policy was acquired to fund all the employee benefits in the plan. Corbion retained the legal obligation to pay further amounts if the insurer does not pay the employee benefits specified in the insurance policy.
\n\n\nThe average duration of the defined benefit obligation as at 31 December 2023 is 18 years.
\n| \u00a0 | 2023 | 2022 |
Current-service costs | 0.3 | 0.5 |
Net interest expense | 0.1 | \u00a0 |
Total pension costs recognized in income statement | 0.4 | 0.5 |
| \u00a0 | \u00a0 | \u00a0 |
Remeasurements net defined benefit liability | \u00a0 | \u00a0 |
- Return on plan assets (excluding amounts included in interest income) | -2.9 | 35.3 |
- Actuarial (gains)/losses arising from changes in demographic assumptions | -0.3 | -3.3 |
- Actuarial (gains)/losses arising from changes in financial assumptions | 2.2 | -36.6 |
- Actuarial (gains)/losses arising from experience adjustments | 0.6 | 3.4 |
Total pension costs recognized in other comprehensive income | -0.4 | -1.2 |
Total | 0.0 | -0.7 |
| \u00a0 | As at 31-12-2023 | As at 31-12-2022 |
Present value of defined benefit obligations | 57.7 | 54.1 |
Fair value of plan assets | -55.4 | -51.7 |
Funded status | 2.3 | 2.4 |
Restrictions on assets recognized | \u00a0 | \u00a0 |
Net liability/(asset) | 2.3 | 2.4 |
| \u00a0 | 2023 | 2022 |
As at 1 January | 54.1 | 92.9 |
Current-service costs | 0.2 | 0.5 |
Interest charges | 2.6 | 1.7 |
Pension payments | -2.1 | -2.4 |
Remeasurement (gains)/losses | \u00a0 | \u00a0 |
- Actuarial (gains)/losses arising from changes in demographic assumptions | -0.3 | -3.3 |
- Actuarial (gains)/losses arising from changes in financial assumptions | 2.2 | -36.6 |
- Actuarial (gains)/losses arising from experience adjustments | 0.6 | 3.4 |
Exchange rate differences | 0.4 | -2.1 |
As at 31 December | 57.7 | 54.1 |
| \u00a0 | 2023 | 2022 |
As at 1 January | 51.7 | 89.7 |
Interest income | 2.5 | 1.7 |
Pension payments | -2.1 | -2.4 |
Contributions from the employer | \u00a0 | 0.3 |
Remeasurement gains/(losses) | \u00a0 | \u00a0 |
- Return on plan assets (excluding amounts included in interest income) | 2.9 | -35.3 |
Exchange rate differences | 0.4 | -2.3 |
As at 31 December | 55.4 | 51.7 |
\nThe return on plan assets (excluding amounts included in interest income) is significantly influenced by the acquired insurance policy in 2021 to fund all the employee benefits in the UK plan. The insurance policy is an exact match of the covered liabilities and is held by the scheme as an asset.
\n\n\nThe investment strategy is based on the composition of the obligations of the pension schemes. Based on Asset Liability Management models analyses have been performed on a regular basis to define the investment portfolio. At year-end the asset allocation was as follows.
\n| \u00a0 | As at 31-12-2023 | As at 31-12-2022 |
Equities | 4.4 | 4.8 |
Bonds | 2.6 | 2.7 |
Other | 48.4 | 44.2 |
Total assets | 55.4 | 51.7 |
\nAll equities and bonds are quoted. The amount in the other category consists for the vast majority of the acquired insurance policy in 2021 to fund all the employee benefits in the UK plan. The insurance\u00a0policy is an exact match of the covered liabilities and is held by the scheme as an asset.
\n| \u00a0 | 2023 | 2022 |
Discount rate | 4.7% | 4.7% |
Pension growth rate | \u00a0 | \u00a0 |
| \u00a0 | Change in assumption | Impact increase of asusmption on DBO | Impact decrease of asusmption on DBO |
Discount rate | 0.50% | (4.3) | 5.1 |
Pension growth rate | 0.50% | - | - |
\nThe above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. To calculate the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method is applied (calculation of the present value of the defined benefit obligation using the projected unit credit method at the end of the reporting period) which is also used to calculate the pension liability recognized within the consolidated statement of financial position.
\n\n\nThe anticipated contributions to the defined benefit pension plans in the coming year will amount to \u20ac\u00a00.2 million.
\n\n| \u00a0 | 2023 | 2022 |
Deferred tax liabilities | 30.0 | 25.4 |
Deferred tax assets | -30.6 | -27.3 |
As at 1 January | -0.6 | -1.9 |
Tax charge in income statement | -0.1 | 6.2 |
Translation differences foreign group companies | -0.9 | 0.8 |
Tax charge movements in other comprehensive income | -1.0 | -5.7 |
As at 31 December | -2.6 | -0.6 |
| \u00a0 | \u00a0 | \u00a0 |
Deferred tax liabilities | 28.3 | 30.0 |
Deferred tax assets | -30.9 | -30.6 |
As at 31 December | -2.6 | -0.6 |
| \u00a0 | As at 31-12-2023 | As at 31-12-2022 | ||
| \u00a0 | Deferred tax assets | Deferred tax liabilities | Deferred tax assets | Deferred tax liabilities |
Property, plant, and equipment | -2.2 | 27.0 | -2.0 | 30.7 |
Intangible fixed assets | -6.6 | 13.0 | -5.9 | 15.1 |
Current assets/liabilities | -17.8 | 1.0 | -23.6 | 2.0 |
Tax loss carry forward | -16.2 | \u00a0 | -15.0 | \u00a0 |
Provisions | -1.0 | 0.2 | -2.6 | 0.7 |
| \u00a0 | -43.8 | 41.2 | -49.1 | 48.5 |
Netting | 12.9 | -12.9 | 18.5 | -18.5 |
Total | -30.9 | 28.3 | -30.6 | 30.0 |
\nThe short-term part of deferred tax assets, after write-down and netting with the short-term part of deferred tax liabilities, amounts to \u20ac 4.8 million (2022: \u20ac 5.9 million).
\n| \u00a0 | As at 31-12-2023 | As at 31-12-2022 |
Total tax loss carry forward | 173.4 | 167.5 |
Tax loss carry forward not qualified as deferred tax asset | -115.9 | -113.3 |
Tax loss carry forward qualified as deferred tax asset | 57.5 | 54.2 |
Average tax rate | 28.2% | 27.7% |
Deferred tax asset | 16.2 | 15.0 |
| \u00a0 | As at 31-12-2023 | As at 31-12-2022 |
Less than 1 year | \u00a0 | \u00a0 |
Within 5 years | \u00a0 | \u00a0 |
Between 5 and 10 years | \u00a0 | \u00a0 |
10 years or longer | \u00a0 | \u00a0 |
No expiry date | 115.9 | 113.3 |
Tax loss carry forward not qualified as deferred tax asset | 115.9 | 113.3 |
| \u00a0 | 2023 | 2022 |
Property, plant, and equipment | -3.5 | 1.7 |
Intangible fixed assets | -2.6 | 1.0 |
Current assets/liabilities | 4.3 | -3.8 |
Tax loss carry forward | -0.3 | 3.3 |
Provisions | 1.1 | 1.0 |
Exchange rate differences loans | -3.1 | 3.9 |
Financial instruments | 4.0 | -0.9 |
Total | -0.1 | 6.2 |
| \u00a0 | Balance sheet value | Effective interest % | Average term in years | |||
| \u00a0 | As at 31-12-2023 | As at 31-12-2022 | As at 31-12-2023 | As at 31-12-2022 | As at 31-12-2023 | As at 31-12-2022 |
Private placement | 265.0 | 276.5 | 2.72 | 2.79 | 3.4 | 4.4 |
Subordinated loan | 99.6 | 99.5 | 1.99 | 1.98 | 4.6 | 5.6 |
Total | 364.6 | 376.0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Weighted average | \u00a0 | \u00a0 | 2.47 | 2.54 | 3.7 | 4.7 |
\nThe weighted average term has been calculated on the basis of the remaining terms of the individual loans.
\n\n\nRepayments on the above amounts are due within five years (\u20ac 288.5 million) and after five years (\u20ac 76.1 million).
\n| \u00a0 | Balance sheet value as at 31-12-2023 | Fair value as at 31-12-2023 | Balance sheet value as at 31-12-2022 | Fair value as at 31-12-2022 |
Private placement | 265.0 | 240.5 | 276.5 | 245.2 |
Subordinated loan | 99.6 | 87.8 | 99.5 | 84.7 |
| \u00a0 | Balance sheet value | Effective interest % | ||
| \u00a0 | As at 31-12-2023 | As at 31-12-2022 | As at 31-12-2023 | As at 31-12-2022 |
Owed to credit institutions | 356.0 | 309.7 | 5.43 | 2.86 |
Total | 356.0 | 309.7 | \u00a0 | \u00a0 |
| \u00a0 | As at 31-12-2023 | As at 31-12-2022 |
Contingent considerations | 11.3 | 14.2 |
Deferred considerations | 1.5 | 1.6 |
Derivatives | 0.5 | \u00a0 |
Total | 13.3 | 15.8 |
| \u00a0 | As at 31-12-2023 | As at 31-12-2022 |
Accruals and deferred income | 28.1 | 53.8 |
Taxation and social security | 14.1 | 9.3 |
Contingent considerations | 8.8 | 3.5 |
Pension liabilities | 3.1 | 2.8 |
Derivatives | 9.7 | \u00a0 |
Other financial accruals | 10.6 | 7.1 |
Other payables | 33.9 | 33.9 |
Total | 108.3 | 110.4 |
\nCorbion's activities are exposed to a variety of financial risks including currency, interest rate, commodity, liquidity, capital, and credit risk. The treasury department identifies and manages these risks, except the commodity risk which is managed by procurement. Treasury and procurement operate within a framework of policies and procedures which have been approved by the Board of Management, which has overall responsibility for the Group's Risk Management Framework. The Audit Committee oversees the Group's Risk Management Framework. The treasury and commodity risk policies are reviewed at least on an annual basis to ensure the policies are up to date with respect to relevant risks and changing business environment. Corbion uses derivatives solely for the purpose of hedging exposure mainly to the commodity, currency, and interest rate risks arising from the company's sources of finance and business. The Treasury Committee and Commodity Risk Management Committee meet periodically to review treasury and commodity activities and compliance with both policies. The Treasury Committee resides within the finance discipline and is chaired by the CFO. In the Commodity Risk Management Committee, the procurement and finance disciplines are represented, with executive level involvement of the CEO, CFO, and COO.
\n\nCorbion is active on the international market, which means that it is exposed to risks arising from currency fluctuations, particularly in the US dollar, Brazilian real, Japanese yen, and Thai baht. Foreign currency exchange risk arises from future commercial transactions, recognized assets and liabilities, and net investments in foreign operations.
\n\nCorbion is subject to foreign exchange rate movements in connection with the translation of its foreign subsidiaries' income, assets, and liabilities into euros in the consolidated financial statements.
\n\n\nThe USD-denominated US Private Placement is treated as a net investment hedge to partially mitigate the foreign exchange risk when translating the US net assets. Currency fluctuations particularly in the US dollar can have a material effect on Corbion\u2019s income statement. Corbion has policies in place that monitor these risks and if required, mitigation actions are discussed in the Treasury Committee. Currently, no other translation effects than part of the US net asset values are being hedged.
\n\n\nIntercompany financing is denominated in the functional currency of the entity receiving the funding, hence the currency risk is at Corbion group level. According to our treasury policy, currency risks above the threshold are hedged using foreign exchange forward contracts. No hedge accounting is applied and both gains and losses on the derivatives and the foreign currency gains and losses on the intercompany financing positions are recognized as a net position in the income statement as financial income or financial charge.
\n\nThe currency transaction risk arises in the course of ordinary business activities when a company trades, borrows, or lends in a currency other than its functional currency. During the time interval between anticipation/commitment and actual payment, exchange rates will fluctuate and the company is exposed to a currency risk. Corbion uses forward currency contracts and currency swaps in order to hedge risks arising from purchase and sales deals and/or commitments from current purchase and sales deals. Committed transaction exposures and anticipated transaction exposures with high probability are hedged and included in cash flow hedge accounting. Anticipated transaction exposures with reasonable probability are partially hedged. For practical reasons a threshold is applied per currency and operating company. Group treasury is responsible for monitoring transaction risks and defining the appropriate hedging strategy, which is approved by the Treasury Committee.
\n\nThe following sensitivity shows the impact of movements in exchange rates on the exchange rate hedging instruments in place as at 31 December 2023. A 10% weakening of the euro against the Japanese yen would decrease the hedge reserve (equity) by \u20ac 1.1 million, while the net result would not be impacted.\u00a0
\n\nInterest rate risk is the risk that interest paid or received on loans and cash investments will vary over a period of time as a direct consequence of changes in the level of interest rates. With regard to interest rate risk, group treasury has the objective to reduce the sensitivity of financial income and charge in the income statement and resulting cash flows to interest rate fluctuations, by actively managing this risk. To reduce the sensitivity, Corbion prefers variable/floating interest rates for short-term (< one year) financing instruments (including short-term drawings), while opting for fixed interest rates for long-term (> one year) financing instruments. As to cap the maximum potential P&L volatility at all times, a threshold is defined for the maximum floating exposure. Interest rate swaps and forward interest rate contracts may be used to adjust the nature of the interest rate and currency of long-term financing to fit the desired risk profile. Interest rate hedging by group treasury requires approval from the Treasury Committee.
\n\n\nCorbion's interest rate risk arises primarily from its debt. Corbion has an interest rate policy aimed at reducing volatility in its interest expense. As at 31 December 2023 long-term debt (\u20ac 364.6 million) is financed at fixed rates (2.47% on average) for a period of on average 3.7 years. Drawings under the revolving Credit facility have a floating interest rate for a period shorter than one year. There were no interest rate derivatives in place at year end 2023.
\n\nAssuming a constant mix of variable and fixed interest rate instruments, an interest rate increase by 50 basis points versus the rates on 31 December 2023 with all other variables held constant, would have a negative impact on the net result of \u20ac 1.8 million and no impact on the equity.
\n\nCommodity risk is the risk of unfavorable changes in commodity prices that may lead to losses in Corbion\u2019s profit and loss statement and that can lead to fluctuations in the statement of cash flows. The Commodity Risk Committee establishes the overall risk tolerance framework for Corbion and ensures that the commodity price risk associated with Corbion's business margins is identified, considered, and managed. The main responsibilities of the Commodity Risk Committee are to monitor the price risk exposure of selected commodities (e.g., sugar, corn, wheat, soybean oil, and energy) and key chemicals, to define methodologies, procedures, and systems to control the risks, to select appropriate risk management tools, and to monitor execution of the commodity risk policy by procurement.
\n\n\nCorbion uses commodity derivative contracts to reduce the risk of price fluctuations in the main commodities used, including natural gas and sugar.
\n\n\nCorbion entered into commodity derivative contracts to hedge the variable price risk of the main commodities used. The fair value of these contracts amounted to a liability of \u20ac 10.1 million as at 31 December 2023 (31 December 2022: asset of \u20ac 3.2 million). Hedge accounting is applied for the major part of these commodity derivative contracts. More information can be found in the section on hedge transactions.
\n\nIf the market price of the involved commodities would increase by 10%, the related derivative contracts\u00a0for which no hedge accounting is applied would impact the profit & loss by \u20ac -0.1 million.
\n\nLiquidity risk is the risk of Corbion not being able to obtain sufficient financial means to meet its obligations in time. Liquidity risk management is the most important pillar for the group treasury function of Corbion and therefore the treasury policy defines the active management of the liquidity risk as the primary objective of group treasury, so that at all times the company is able to meet its financial obligations of the whole group in the short and long term. Liquidity risk is managed by ensuring sufficient liquidity capacity through (incoming) cash and cash equivalents and the availability of committed borrowing capacity as well as a solid financial risk profile. Corbion manages liquidity risk by means of cash-flow projections for the short term (daily), medium term (quarterly review for running year) and long term (up to 5 years, bi-annual review).
\n\n\nCorbion also has a private placement of $ 295 million and a subordinated private placement of \u20ac 100 million with American institutional investors.
\n\n\nTo provide insight into the liquidity risk the table below shows the contractual terms of the financial obligations (converted at balance sheet date), including interest paid.
\n\n\nThe table below analyzes Corbion\u2019s financial obligations which will be settled on a net basis, according to relevant expiration dates, based on the remaining period from the balance sheet date to the contractual expiration date. The amounts shown are contractual non-discounted cash flows.
\n| \u00a0 | Less than 1 year | Between 1 and 5 years | More than 5 years | Total |
As at 31 December 2023 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Private placement | 8.2 | 205.9 | 80.2 | 294.3 |
Subordinated loan | 2.0 | 107.3 | \u00a0 | 109.3 |
Owed to credit institutions | 360.6 | \u00a0 | \u00a0 | 360.6 |
Lease liabilities | 22.4 | 37.5 | 24.6 | 84.5 |
Contingent considerations | 9.4 | 14.3 | \u00a0 | 23.7 |
Trade payables | 104.3 | \u00a0 | \u00a0 | 104.3 |
Other non-interest-bearing current liabilities | 99.5 | \u00a0 | \u00a0 | 99.5 |
Total | 606.4 | 365.0 | 104.8 | 1,076.2 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
As at 31 December 2022 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Private placement | 8.5 | 221.5 | 85.7 | 315.7 |
Subordinated loan | 2.0 | 23.6 | 84.8 | 110.4 |
Owed to credit institutions | 313.2 | \u00a0 | \u00a0 | 313.2 |
Lease liabilities | 17.4 | 41.1 | 29.9 | 88.4 |
Contingent considerations | 4.3 | 24.7 | \u00a0 | 29.0 |
Trade payables | 148.3 | \u00a0 | \u00a0 | 148.3 |
Other non-interest-bearing current liabilities | 106.9 | \u00a0 | \u00a0 | 106.9 |
Total | 600.6 | 310.9 | 200.4 | 1,111.9 |
\nCredit risk refers to the losses that would be recognized if a customer or a counterparty to a financial instrument fails to meet its contractual obligations. In respect of disbursed loans, other receivables, and cash and cash equivalents the maximum credit risk equals the book value. In respect of derivatives it equals the fair value.
\n\n\nGiven the credit rating that it requires of its partners Corbion has no reason to assume that they will not honor their contractual obligations. Based on today's insights, the actual credit risk is limited.
\n\nCorporate finance, which is the process of optimizing the capital structure and capital allocation of the group, is an important pillar of the group treasury function within Corbion, as it is closely linked to the management of the liquidity risk. A prudent corporate finance policy and approach aims to maintain sufficient access to liquidity and supports a solid financial risk profile. Corbion\u2019s size, geographical presence in different financial markets, financial strength, consolidated cash flow generation, and public share listing gives access to multiple financing instruments. Group treasury is responsible for managing the optimized overall capital structure of the group, which is set by the Treasury Committee, using multiple financing sources (e.g., debt, mezzanine or equity instruments), both at a group level and at an operating company level. Group treasury is responsible for defining the funding requirements and funding strategy of the group, which is reviewed and approved annually by the Treasury Committee.
\n\n\nThe capital structure of Corbion consists of net debt (borrowings as detailed in Note 22) offset by cash and cash equivalents (as detailed in Note 17).
\n| \u00a0 | 2023 | 2022 |
Private placement | 265.0 | 276.5 |
Revolving credit facility | 356.0 | 309.7 |
Subordinated loan | 99.6 | 99.5 |
Lease commitments | 64.9 | 73.5 |
Total financial liabilities part of net debt | 785.5 | 759.2 |
Cash and cash equivalents | -70.2 | -58.2 |
Net debt | 715.3 | 701.0 |
-/- Subordinated loan | -99.6 | -99.5 |
Covenant net debt for covenant ratio calculation | 615.7 | 601.5 |
| \u00a0 | Private placement | Revolving credit facility | Subordinated loan | Leases | Total |
As at 1 January 2023 | 276.5 | 309.7 | 99.5 | 73.5 | 759.2 |
Financing cash flows | \u00a0 | 46.0 | \u00a0 | \u00a0 | 46.0 |
Repayments | \u00a0 | \u00a0 | \u00a0 | -15.9 | -15.9 |
New lease commitments | \u00a0 | \u00a0 | \u00a0 | 7.4 | 7.4 |
Exchange rate differences | -11.5 | \u00a0 | \u00a0 | -2.6 | -14.1 |
Other | \u00a0 | 0.3 | 0.1 | 2.5 | 2.9 |
As at 31 December 2023 | 265.0 | 356.0 | 99.6 | 64.9 | 785.5 |
\nThe Corbion Treasury Committee reviews the capital structure of Corbion on a quarterly basis. As part of this review, the committee considers the cost of capital and the risks associated with each class of capital.
\n\n\nThe main covenants for the revolving credit facility and the US private placement are:
\n\nThe ratio of covenant net debt position divided by covenant EBITDA (Earnings Before Interest, Taxes, Depreciation, Amortization, and impairment of (in)tangible fixed assets, excluding adjustments, increased by cash dividend of joint ventures received and annualization effect of newly acquired and/or divested subsidiaries) may not exceed the factor 3.75.
\n\n\nA minimum interest cover (covenant EBITDA divided by net interest income and charges) of 3.5.
\n\n\nThese external conditions were met in 2023 as well as in 2022.\u00a0Corbion targets a Covenant net debt/ Covenant EBITDA ratio between 1.5x and 2.5x from 2024 onwards.
\n| \u00a0 | 2023 | 2022 |
Covenant net debt position/covenant EBITDA | 3.1 | 3.0 |
Interest cover | 7.9 | 14.2 |
\nCorbion is using financial derivatives to control the risks related to fluctuations in foreign currencies, commodities, and interest rates. Only when there is an underlying exposure Corbion will enter into financial derivatives.\u00a0Hedging instruments need to be approved by the Treasury Committee and hedge accounting is applied where appropriate.
\n\nCorbion measures fair values using the following fair value hierarchy that reflects the significance of the inputs used in making the measurements:
\n\nLevel 1: Fair value measurements based on quoted prices (unadjusted) in active markets for identical assets or liabilities.
\n\n\nLevel 2: Fair value measurements based on inputs other than Level 1 quoted prices that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
\n\n\nLevel 3: Fair value measurements based on valuation techniques that include inputs for the asset or liability that are based on observable market data (unobservable inputs).
\n\n31 December 2023 | Level 1 | Level 2 | Level 3 | Total |
Derivatives | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
\u2022 Foreign exchange contracts | \u00a0 | 0.3 | \u00a0 | 0.3 |
\u2022 Commodity swaps/collars | \u00a0 | -10.1 | \u00a0 | -10.1 |
Other (non-)current liabilities | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
\u2022 Contingent and deferred considerations | \u00a0 | \u00a0 | -21.6 | -21.6 |
Total | \u00a0 | -9.8 | -21.6 | -31.4 |
As at 1 January 2023 | -19.3 |
Remeasurement recognized in income statement | -7.1 |
Settlements | 4.8 |
As at 31 December 2023 | -21.6 |
31 December 2023 | Balance sheet value | Fair value |
| \u00a0 | \u00a0 | \u00a0 |
Receivables | \u00a0 | \u00a0 |
\u2022 Trade receivables | 200.9 | 200.9 |
\u2022 Other receivables | 23.1 | 23.1 |
\u2022 Prepayments and accrued income | 14.2 | 14.2 |
| \u00a0 | \u00a0 | \u00a0 |
Cash | \u00a0 | \u00a0 |
\u2022 Cash other | 70.2 | 70.2 |
| \u00a0 | \u00a0 | \u00a0 |
Other non-current liabilities | \u00a0 | \u00a0 |
\u2022 Contingent and deferred considerations | -12.8 | -12.8 |
| \u00a0 | \u00a0 | \u00a0 |
Non-interest-bearing liabilities | \u00a0 | \u00a0 |
\u2022 Trade payables | -104.3 | -104.3 |
\u2022 Other payables | -99.5 | -99.5 |
| \u00a0 | \u00a0 | \u00a0 |
Other current liabilities | \u00a0 | \u00a0 |
\u2022 Contingent and deferred considerations | -8.8 | -8.8 |
| \u00a0 | \u00a0 | \u00a0 |
Derivatives | \u00a0 | \u00a0 |
\u2022 Foreign exchange contracts | 0.3 | 0.3 |
\u2022 Commodity swaps/collars | -10.1 | -10.1 |
| \u00a0 | \u00a0 | \u00a0 |
Total | 73.2 | 73.2 |
\nFair values are determined as follows:
\n\nThe fair value of receivables equals the book value because of their short-term character (level 2).
\n\n\nCash and cash equivalents are measured at nominal value which, given the short-term and risk-free character, corresponds to the fair value (level 2).
\n\n\nContingent and deferred considerations are measured on the basis of the present value of the current expected future cash flows (level 3).
\n\n\nCurrency and interest rate derivatives are measured on the basis of the present value of future cash flows over the remaining term of the contracts, using the bank interest rate (such as Euribor) as at the reporting date for the remaining term of the contracts. The present value in foreign currencies is converted using the exchange rate applicable as at the reporting date (level 2).
\n\n\nCommodity derivatives are measured on the basis of the present value of future cash flows, using market quotations or own variable market price estimations of the involved commodity as at the reporting date (level 2).
\n\n\nThe amount of \u20ac 9.1 million in hedge reserve (see Note 18) relates to the hedging of risks arising from future purchase and sales deals and/or commitments from current purchase and sales contracts amounting to \u20ac 94.4 million.
\n\n\nThe amount of \u20ac 3.7 million in translation reserve (see Note 18) relates to currency fluctuations in respect of the net investments in foreign operations less the currency fluctuations of the corresponding net investment hedges. In case of divestment of a net investment in a foreign operation, the corresponding net impact of the currency fluctuations is moved from the translation reserve to the income statement.
\n\n\nIn the past year no cash flow hedges were terminated early due to changes to the expected future transaction. No ineffective parts were recorded in respect of the net investment hedge and cash flow hedge.
\n| \u00a0 | Short < 1 year | Long > 1 year | ||
| \u00a0 | As at 31-12-2023 | As at 31-12-2022 | As at 31-12-2023 | As at 31-12-2022 |
Derivatives receivables/(liabilities) used as hedge instrument in cash flow hedge relations: | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Foreign exchange contracts | 0.3 | 0.5 | \u00a0 | \u00a0 |
Commodity swaps | -16.1 | 4.4 | -0.3 | \u00a0 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Derivatives receivables/(liabilities) used as hedge instrument in fair value hedge relations: | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Commodity swaps | 6.9 | -0.8 | \u00a0 | \u00a0 |
Total derivatives in hedge relations | -8.9 | 4.1 | -0.3 | \u00a0 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Derivatives receivables/(liabilities) not used in a hedge relation with value change through income statement: | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Commodity swaps | -0.4 | -0.4 | -0.2 | \u00a0 |
Total derivatives through income statement | -0.4 | -0.4 | -0.2 | \u00a0 |
Total derivatives | -9.3 | 3.7 | -0.5 | \u00a0 |
\nFor more information on the remuneration policy see the Remuneration report. For more information on share-based payments see Note 27.
\n| \u00a0 | Granted in | At target number outstanding as at 31-12-2023 | Maximum number outstanding as at 31-12-2023 | Year of vesting |
O. Rigaud | 2021 | 14,722 | 22,083 | 2024 |
| \u00a0 | 2022 | 23,323 | 34,985 | 2025 |
| \u00a0 | 2023 | 26,300 | 39,450 | 2025 |
E. van Rhede van der Kloot | 2021 | 8,854 | 13,281 | 2024 |
| \u00a0 | 2022 | 12,237 | 18,356 | 2025 |
| \u00a0 | 2023 | 13,603 | 20,405 | 2025 |
Total as at 31 December 2023 | \u00a0 | 99,039 | 148,560 | \u00a0 |
| \u00a0 | Maximum number outstanding as at 31-12-2022 | Maximum number granted in 2023 | Vested 2023 | Expired 2023 | Maximum number outstanding as at 31-12-2023 |
O. Rigaud | 91,945 | 39,450 | 24,838 | 10,039 | 96,518 |
E. van Rhede van der Kloot | 52,654 | 20,405 | 14,932 | 6,085 | 52,042 |
Total | 144,599 | 59,855 | 39,770 | 16,124 | 148,560 |
| \u00a0 | IAS 24.17 category | Short-term employee benefits | Share-based payments | Post-employment benefits | Other long-term benefits | Termination benefits | Total | |
Thousands of euros | 2023 | Base salary | STIP | LTIP | Pension benefits | Other benefits | Termination benefits | \u00a0 |
O. Rigaud | 924 | \u00a0 | 810 | \u00a0 | \u00a0 | \u00a0 | 1,734 | |
E. van Rhede van der Kloot | 605 | \u00a0 | 453 | \u00a0 | \u00a0 | \u00a0 | 1,058 | |
Total Board of Management | 1,529 | \u00a0 | 1,263 | \u00a0 | \u00a0 | \u00a0 | 2,792 |
| \u00a0 | IAS 24.17 category | Short-term employee benefits | Share-based payments | Post-employment benefits | Other long-term benefits | Termination benefits | Total | |
Thousands of euros | 2022 | Base salary1 | STIP | LTIP | Pension benefits | Other benefits | Termination benefits | \u00a0 |
O. Rigaud | \u00a0 | 860 | 516 | 832 | \u00a0 | \u00a0 | \u00a0 | 2,208 |
E. van Rhede van der Kloot | \u00a0 | 583 | 271 | 487 | \u00a0 | \u00a0 | \u00a0 | 1,341 |
Total Board of Management | 1,443 | 787 | 1,319 | \u00a0 | \u00a0 | \u00a0 | 3,549 |
\nThe tables above show the costs based on the applicable IFRS standard and do not necessarily reflect the actual amounts paid.
\n\nThe table below specifies the remuneration of the Executive Committee (ExCo), comprising the Board of Management members as listed above and the additional ExCo members who are not part of the Board of Management.
\nThousands of euros | 2023 | 2022 |
Short-term employee benefits | 4,152 | 5,810 |
Share-based payments | 2,295 | 2,305 |
Post-employment benefits | 33 | 19 |
Other long-term benefits | \u00a0 | \u00a0 |
Termination benefits 1 | 550 | \u00a0 |
| \u00a0 | IAS 24.17 category | Short-term employee benefits1 | Share-based payments | Post-employment benefits | Other long-term benefits | Termination benefits | Total | |
Thousands of euros | Year | Base fee | Committee fee | LTIP | Pension benefits | Other benefits | Termination benefits | \u00a0 |
Mathieu Vrijsen, Chair (Chair Appointment & Governance Committee / member Remuneration Committee / member Science and Technology Committee) | 2023 | 70 | 23 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 93 |
2022 | 70 | 23 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 93 | |
Ilona Haaijer, Vice-Chair since 18 May 2022 (Chair Remuneration Committee since 18 May 2022 / member Appointment and Governance Committee since 18 May 2022 / member Audit Committee until 18 May 2022 / member Science and Technology Committee) | 2023 | 60 | 23 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 83 |
2022 | 56 | 21 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 77 | |
Rudy Markham, until 18 May 2022 Vice-Chair (Chair Remuneration Committee / member Appointment and Governance Committee) | 2022 | 23 | 6 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 29 |
Liz Doherty (Chair Audit Committee / member Sustainability and Safety Committee) | 2023 | 50 | 22 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 72 |
2022 | 50 | 22 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 72 | |
William Lin (Chair Sustainability and Safety Committee / member Audit Committee) since 18 May 2022 | 2023 | 50 | 19 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 69 |
2022 | 31 | 12 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 43 | |
Dessi Temperley (member Audit Committee / member Sustainability and Safety Committee until 10 August 2023/ member Remuneration Committee and member Appointment and Governance Committee from 10 August 2023) | 2023 | 50 | 20 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 70 |
2022 | 50 | 17 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 67 | |
Steen Riisgaard (Chair Science and Technology Committee / member Remuneration Committee and member Appointment and Governance Committee until 10 August 2023 / member Sustainability and Safety Committee since 10 August 2023) | 2023 | 50 | 21 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 71 |
2022 | 50 | 23 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 73 | |
| \u00a0 | Total 2023 | 330 | 128 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 458 |
| \u00a0 | Total 2022 | 330 | 124 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 454 |
\nNo loans or advance payments or any guarantees to that effect have been made or issued to the members of the Supervisory Board. None of the members of the Supervisory Board have shares in the company or any option rights relating thereto.
\n| \u00a0 | Transaction values for the year ended | Balance outstanding at year-end | ||
| \u00a0 | 2023 | 2022 | 2023 | 2022 |
Sales | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Joint ventures | 61.1 | 77.7 | 9.4 | 8.4 |
Purchases | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Joint ventures | 2.6 | 7.8 | 0.6 | 0.9 |
Others | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Joint ventures | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
- Dividends received | 4.6 | 14.3 | \u00a0 | \u00a0 |
- Loans | \u00a0 | \u00a0 | 61.9 | 64.6 |
\nCorbion has an outstanding loan granted to the joint venture TotalEnergies Corbion bv of \u20ac 61.9 million with an interest rate of 8.40% and a remaining term of 6 years.
\n\n\nA share plan is in place for the Board of Management. The members of the Board of Management have a total of 148,560 unvested share rights in the company as at 31\u00a0December 2023 (2022: 144,599). The nominal amount of the shares which are claimable under unvested share rights equals \u20ac 37,140 per that date.
\n\n\nThe share grant program was introduced in 2020 as part of the new remuneration policy adopted by the annual General Meeting of Shareholders (AGM) on 29 June 2020, measuring performance over a period of three calendar years. Each year members of the Board of Management are entitled to a conditional grant of Corbion shares. There are two target levels for this incentive: one applies to the CEO and one to the CFO. The CEO is entitled to a conditional share grant value of 120% of base salary. The CFO is entitled to a conditional share grant value of 100% of base salary. The total number of conditionally granted shares is determined by dividing the at target amount applicable for the respective Board member (as a percentage of base salary) by the share price. The share price is defined as the average closing price of the Corbion share during the last full calendar quarter preceding the conditional grant of shares.
\n\n\nAt the beginning of the three-year performance period, targets for the LTIP are set by the Supervisory Board as follows.
\nThe Total Shareholder Return (TSR) performance is benchmarked against the TSR performance of Corbion\u2019s TSR peer group and the relative ranking determines the actual payout for 30% of the LTIP.
\n\n\nA target based on organic sales growth, a threshold (minimum) and a range around the performance target to determine the actual payout for 25% of the LTIP.
\n\n\nA target based on adjusted EBITDA, a threshold (minimum) and a range around the performance target to determine the actual payout for 20% of the LTIP.
\n\n\nA target based on return on capital employed (ROCE), a threshold (minimum) and a range around the performance target to determine the actual payout for 12.5% of the LTIP.
\n\n\nA target based on return on sustainability goals, a threshold (minimum) and a range around the performance target to determine the actual payout for 12.5% of the LTIP.
\n\n\nPrior to each conditional grant the Supervisory Board sets a target level for the performance measures, i.e. organic net sales growth, adjusted EBITDA, ROCE, and sustainability. A threshold\u00a0performance level is determined below which no pay-out is granted and a maximum performance level where maximum pay-out is reached.
\nYear of allocation | Total as at 31-12-2022 | Allocated in 2023 | Vested and expired in 2023 | Total as at 31-12-2023 |
2020 | 53,627 | \u00a0 | 53,627 | \u00a0 |
2021 | 35,364 | \u00a0 | \u00a0 | 35,364 |
2022 | 55,608 | \u00a0 | 2,267 | 53,341 |
2023 | \u00a0 | 59,855 | \u00a0 | 59,855 |
Total | 144,599 | 59,855 | 55,894 | 148,560 |
\nThe fair value of the non-market-based components of the above-mentioned performance-related shares allocated in 2023 was \u20ac 28.52 per share (2022: \u20ac 31.84). The fair value of the market-based components of the above-mentioned performance-related shares allocated in 2023 was \u20ac 35.28 per share (2022: \u20ac 38.79). The fair value of the market-based components is estimated by using the Black & Scholes model and the assumptions set forth below.
\n| \u00a0 | 2023 | 2022 |
Risk-free interest rate | 2.62% | 0.42% |
Expected dividend gains | \u00a0 | \u00a0 |
Expected volatility in share price | 30% | 31% |
Term | 3 years | 3 years |
\nAn equity-settled plan similar to the program for the Board of Management is in place for senior management.
\nYear of allocation | Total as at 31-12-2022 | Allocated in 2023 | Vested and expired in 2023 | Total as at 31-12-2023 |
2020 | 118,786 | \u00a0 | 118,786 | \u00a0 |
2021 | 98,068 | \u00a0 | 9,549 | 88,519 |
2022 | 171,082 | \u00a0 | 21,823 | 149,259 |
2023 | \u00a0 | 182,904 | \u00a0 | 182,904 |
Total | 387,936 | 182,904 | 150,158 | 420,682 |
\nThe CFO has 6,019 outstanding shares related to commitment awards. These shares were granted before he was appointed as CFO and are held in a separate blocked account until the end of his employment at Corbion.
\n\n\nThe capital expenditure commitments not yet incurred amounted to \u20ac 6.7 million for (in)tangible fixed assets as at 31 December 2023 (2022: \u20ac 35.4 million).
\n\nThird-party guarantees amounted to \u20ac 4.7 million as at 31 December 2023 (2022: \u20ac\u00a05.4 million). No significant future losses are expected from these guarantees.
\n\n\nOn 26 January 2024, Corbion announced Kingswood will acquire the emulsifier business from Corbion for a cash\u00a0purchase price of $ 362 million, with expected net cash proceeds of approximately $ 275 million, post tax\u00a0and transaction costs. The transaction comprises, amongst other conveying assets, two US-based manufacturing plants and c.175 employees. Corbion and Kingswood will work together, with\u00a0supply and service agreements in place, to enable a smooth transition and to ensure that\u00a0customers continue to experience a high level of service. The transaction is expected to close in\u00a0the second quarter of 2024.
IFRS 5\u00a0Non-current Assets Held for Sale and Discontinued Operations\u00a0outlines how to account for non-current assets held for sale (or for distribution to owners). In general terms, assets (or disposal groups) held for sale are not depreciated, are measured at the lower of carrying amount and fair value less costs to sell, and are presented separately in the statement of financial position. Specific disclosures are also required for discontinued operations and disposals of non-current assets. Certain conditions need to be fulfilled for an asset (or 'disposal group') to be classified as held for sale which were not all fulfilled yet as negotiations were still in an early phase at balance sheet date. The\u00a0business will be presented as a discontinued operation in 2024. Since the sales proceeds exceed the book value, there will be no impairment related to this transaction in 2024.
\nAs announced during the Capital Markets Update, Corbion reviewed the organizational structure resulting in the business unit structure reducing from 3 to 2 business units, being Health & Nutrition and Functional Ingredients & Solutions. The Non-core activities will phase out. The segmentation reporting in 2024 will follow the revised business structure.\u00a0
\n\nThousands of euros | KPMG Accountants nv 2023 | KPMG Other 2023 | Total 2023 | Total 2022 |
Audit of the financial statements | 792 | 259 | 1,051 | 1,082 |
Audit-related services* | 117 | 1 | 118 | 109 |
Non-audit services | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Total | 909 | 260 | 1,169 | 1,191 |