Q3 2022: continuous growth in revenues, margins negatively impacted by steep cost increase in Q3 Implementation of action plans to protect margins

Safety and Sustainability

• 9M 2022 TRIR at 0.42: reflecting on-going action plans to further improve safety

• Initiatives on sustainability rolled out to revisit the global plans on energy saving and accelerating the progress toward carbon footprint reduction

9M 2022: +16% growth in revenues and -8.6% decrease in net profit attributable to shareholders.

In Q3 2022, continuous growth in revenues (+7%, CNY3.6 billion) despite demand slow-down and significant drop in net margin due to huge rise in energy and raw material cost:

• Performance products: +5% revenue growth with gross margin at 20% in Q3

1. 1)Slow-down in demand mainly due to inventory management of customers

2. 2)Continuous pricing downwards pressure on Vitamin A

3. 3)Proactive price management on methionine partially offsetting the drastic energy cost increase in Europe

• Specialties: +8% revenue growth with gross margin at 42% in Q3

1. 1)Continuous growth in ruminant, feed digestibility, health by nutrition and aqua

2. 2)Price increase not totally offsetting the energy and raw material costs in Europe

Immediate measures are being implemented to best serve customers while protecting margins, which includes:

• Temporary shutdown of one of the powder methionine lines in Europe

• Adapted Vitamin A production plan

• Tight resources management

• Leverage Chinese competitive assets

Key projects

• Successful start-up and ramp-up of new 180KT Nanjing Plant (BANC2 project)

• Calysseo progressed towards start-up stage as planned

• Specialty capacity expansion projects in China and Europe are progressing

2022 outlook

• Safety and sustainability remain Adisseo’s top priorities.

• Volatility and uncertainty are more than ever prevailing. Facing the serious challenges from raw material and energy supply condition in addition to on-going supply chain disruptions, Adisseo is taking strong and immediate actions to pursue growth and protect margins.

• In Q4 2022 and beyond, market demand is expected to improve in Q4. Competitive environment will still be challenging. Energy and raw material costs will remain high even if moderately reduced.

• In FY 2022, Adisseo is expecting to deliver strong revenue growth while protecting profitability at a solid level.

Jean-Marc Dublanc, Vice Chairman and CEO of Adisseo, said: “As we walked through the third quarter, market conditions deteriorated significantly –the energy and raw material supply condition worsened, leading to steep cost increases in Europe; market demand slowed down due to our customers’ margin pressure and inventory management.

Despite these major headwinds, Adisseo managed to deliver solid results with continuous revenue growth.

On 15 September, our new 180KT BANC2 project started up successfully, and the total capacity of our Nanjing production platform has now reached 350KT, making it one of the largest production platforms in the world offering the strongest cost advantage. Our expanded capacity across the globe will be fully leveraged to best serve our customers and further improve our cost competitiveness.

Key strong and immediate measures are being implemented to protect margins.

Looking ahead, we expect the business environment to remain challenging over the next quarter and beyond. I also believe that demand should gradually improve. In this context, I am confident that our on-going corrective action plans together with the full leverage of our global commercial and manufacturing footprint will allow us to address the challenge we are facing and to keep delivering solid performance for the company and for our shareholders.”

Bluestar Adisseo Company (“Adisseo” or “the Company”) Board of Directors disclosed its Q3 2022 results.

I. Business Review: Revenues & Net Profit Contributed to Shareholders