CSM Transformation

7 May 2012

Today’s announcement

§  Decision to transform CSM into bio-based ingredients company §  Supported by full board

§  Transformation subject to shareholder approval

§  Going forward, CSM will consist of Purac and Caravan Ingredients, and focus on bio-based ingredients

§  Bakery Supplies business will be divested

The evolution of CSM

§  CSM’s portfolio has been streamlined and refocused over last 8 years

2004 Future CSM 2011

Purac 56%

Caravan 44%

Bakery Supplies Europe

35%

Bakery Supplies

North America

52%

Purac 13% Bakery

Supplies Europe

33%

Bakery Supplies

North America

30%

Sugar Conf'ary

21%

Purac 8% Sugar

8%

All charts sales breakdown. ‘Future CSM’ unaudited

Rationale for strategic transformation

§  New reality in bakery supplies makes further consolidation likely

§  Bio-based ingredients high-growth opportunities require significant investments

§  CSM does not have sufficient financial resources for both in longer term

§  Decisive choice made to focus future CSM on Purac and Caravan

§  CSM Bakery Supplies more valuable to others who can participate in consolidation

Future CSM

Purac

Caravan Ingredients

Future CSM

§  Future CSM: comprise of Purac and Caravan

Revenues 407 EBITDA 72 EBITA 46

Revenues 297 EBITDA 52 EBITA 47

Revenues 704 EBITDA 124 EBITA 93

All in €m, pro forma 2011, unaudited

Caravan Ingredients: Product portfolio

Functional Blends

Bakery Conditioners

Enzymes, mold inhibitors

Flour conditioners

Replacers/reducers

Bakery Flavors & Colors

Emulsifiers

Processing Agents

Food Emulsifiers

Non-Food Emulsifiers

Fortification

Flour enrichment

Food & Beverage

Bakery Ingredients

Fillings, icings, glazes

Flatbread, Pizza, Tortilla,

Pita

Sweet Goods

Bagel, English muffin, Pretzel

Emulsifiers, 33%

Functional blends, 27%

Fortification, 7%

Bakery ingredients,

33%

Revenue distribution

Unaudited, 2011

Caravan Ingredients: Market positions

Industry Properties Caravan position (US) Competition

Emulsifiers §  $650m market size §  3.5% growth p.a.

#2

Danisco, Cargill, ADM, Kerry

Functional Blends §  $400m market size §  3% growth p.a.

#1 Puratos, Danisco, AB Mauri

Fortification §  $2bn market size §  4% growth p.a.

N.A. Fortitech, Watson

Bakery Mixes §  $1.6bn market size §  -3% growth p.a.

Top 5 General Mills, Guenther, Dawn

§  Leading market positions in most of Caravan Ingredients activities

Caravan Ingredients: 5-yr Financials

§  Revenues resilient to economic downturn, EBITA increased continuously

2007   2008   2009   2010   2011  Sales  ($m;  LHS)   347   401   397   396   413  

EBITA  ($m;  RHS)   40.2   41.7   53.7   64.2   65.2  

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Purac: Product portfolio

§  World market leader in fermentation based lactic acid (derivatives)

§  Purac has grown organically by 8% CAGR in 2000-2011 period

Food market: §  Natural preservation solutions §  Taste & Nutrition solutions

Chemical & Pharma markets: •  Pharma, Animal Health, HPC, Chemical •  Leader in biobased building blocks (lactides, biobased chemical

components)

Purac: Market positions Est. market potential PLA in kT

Source: McKinsey

Fermentation food ingredients market size in € bln

§  #1 market share in Lactic acid & derivatives

§  Lactic acid base business expected to grow by 8-10% in coming years

§  Bio-based chemicals beyond lactic acid offer great opportunity

§  Huge market potential for bioplastics/PLA

Bio-based chemicals market size € bln

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29  

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35  

2008  

2020  

CAGR 8%

290-­‐450  

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2020  

CAGR 8-12%

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550

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3,500

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2015

2020

CAGR 41%

Purac: 5-yr Financials

§  Strong track-record of top-line growth, strong margin recovery since 2005. Recent results impacted by investments in new technologies

2007   2008   2009   2010   2011  Sales  (€m;  LHS)   310.1   325.6   355.3   400.4   407.2  

EBITA  (€m;  RHS)   22.3   22.8   37.9   56.6   46.1  

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Future CSM: the combined portfolio

§  Current overlap of combined portfolio

Meat preservation

Fortification

Chemicals & Pharma

Bioplastics

Emulsifiers

Functional blends

Fortification

Bakery mixes

Mar

gin

Growth

3% 3%

Current portfolio overlap

Purac   Caravan  

Manufacturing footprint

Opportunities to expand Caravan Ingredient’s footprint

Future growth opportunities

§  Growth segments for combination of Purac and Caravan Ingredients

• Other organic acids • Lactides/bioplastics • New lactic acid derivatives • Lactylates

• Cross-channel opportunities • Key account management

• Emerging markets opportunities

• Extended shelf life & Food safety

• Health, both human & animal • Green Chemicals

Applications Geography

Products Customers

Future CSM: Pro forma financials 2011

§  Central costs will be right-sized to fit scale of future CSM

2009 2010 2011PuracSales 355.3 400.4 407.2EBITDA 59.2 81.0 71.6EBITA 37.9 56.6 46.1

Caravan  Ingredients  ($m)Sales 397.0 396.0 413.0EBITDA 60.7 71.2 72.2EBITA 53.7 64.2 65.2

Caravan  Ingredients  (€m)Sales 284.7 298.7 296.9EBITDA 43.5 53.7 51.9EBITA 38.5 48.4 46.9

Total  before  central  costs  (€m)Sales 640.0 699.1 704.1EBITDA 102.7 134.7 123.5EBITA 76.4 105.0 93.0

Central  costs    (€m)EBITDA (26.6) (26.6) (28.4)EBITA (26.6) (26.6) (28.6)

All  reporting  lines  before  one-­‐off  costs,  unaudited

Divestments Bakery Supplies

§  Bakery Supplies Europe and North America (excluding Caravan) likely to be of greater value to another owner §  Superior market positions, but…

§  Economic turmoil impacting results constraining growth investments

§  Required stable cash flows impacted by high raw material volatility

§  Significant investments required in consolidating industry

§  Businesses to be divested: € 2,409 million and EBITDA of € 128 million

§  Divestment will be a carefully managed process, taking into account; price, speed, impact on employees etc.

§  Cost savings program Relevance will continue as planned

Divestments & proceeds

§  Proceeds will be balanced between §  Deleverage CSM (net debt € 616 million at year-end 2011)

§  Resolve pension liabilities related to divested business

§  Invest for organic growth

§  Fund bolt-on acquisitions

§  Distribute funds to shareholders

§  Disposal costs include §  M&A/legal

§  Financial reorganization

§  Severance plans

Timetable

§  Investor visits §  9 May: UK

§  10 May: NL

§  EGM will take place at 3 July 2012

§  We expect to have made significant progress in the divestment program by early 2013

Key take aways

§  Transformation is next major step in CSM strategic evolution

§  We can’t support growth strategies for both activities longer term §  Recognizes the new reality in Bakery Supplies

§  Decisive choice to redeploy capital into higher growth activities §  Strong market positions for Purac and Caravan Ingredients

§  Structural growth in natural, renewable bio-based ingredients

§  Financial structure of future CSM will reflect growth opportunities

§  Expect to have made significant progress by early 2013

Appendix: To be divested (financials)

2011BSEU  (€m)Sales 1,078EBITDA 60.8EBITA 38.4

BSNA  (excl.  Caravan  Ingredients)  (€m)Sales 1,331EBITDA 66.8EBITA 48.0

Total  (€m)Sales 2,409EBITDA 127.5EBITA 86.3All  reporting  lines  before  central  costs,  one-­‐off  costs,  unaudited