John Melo: Yes. We are expecting that to be a 2023 event.
Sameer Joshi: Okay. And then just the last one, as a result of the transaction with Givaudan, does it impact any of your existing coal revenues, or profitability there off?
John Melo: Yes, I think I had mentioned earlier that the totality of the Givaudan transaction would have impacted 2022 revenue by about $10 million. And so that was on 2022 basis, with the growth in that business, I would expect on a like-for-like basis, that growth actually makes up most of the impact in revenue during 2022. So, it would be almost neutral to what we saw in 2022 from that business, based on the growth rate. So, it’s not a material impact to our revenue at all, post transaction.
Sameer Joshi: Thanks for clarifying that and good luck.
John Melo: It’s actually I should say Sameer, one thing I didn’t pick up on all that, is when you actually include the revenue from the earnout, it becomes accretive to revenue post-transaction. But it is earn-out which is 3 years, I would expect poster it out, based on the annual growth rate, the business will be about double the size of the time, we sold it to them of the 2022 revenue, just to give you a sense of magnitude of how that businesses are operating today.
Sameer Joshi: Yes. And I think you also mentioned the rest of the 150 will come from sort of gross margin dollars as a result of manufacturing this.
John Melo: Yes. That’s above the 350. So, the 350 to 500 delta is really based on the first 10 years of the long-term production agreement gross margin contribution.
Sameer Joshi: Got it. Thanks once again.
Operator: Our last question will come from Laurence Alexander of Jefferies. Please go ahead.
Laurence Alexander: Good afternoon, John. Hope all is well. Just have a couple of questions. Hopefully, I guess first for Han. Can you give us the total backlog of milestones and earn-outs? And what you think you expect to drop through rate is from that backlog to your EBITDA over say the next 5 years to 10 years?
Han Kieftenbeld: Alright. Well, when you say backlog, let me explain it and see what I am actually answering your question. So, we just completed. So, basically now, right now we have three agreements in hand, right. We have the flavor and fragrance agreement with DSM. We have the Reb M agreement with Ingredion. And we have the coming up cosmetic activists with Givaudan. We are just coming out of year one of DSM. We have recognized that revenue in our books, and we have 2 more years to go from out of the 3 years. So, there is 2 more years to come from a DSM perspective on the F&F portfolio. On the Ingredion side, with Reb M there is two things. One is we are sharing in a royalty stream. We have with that in 2022 and continued to have a share in call it a value share or royalty stream as part of the revenue that they are having with their end customers.
That’s one aspect. The other aspect is we have certain milestone payments related to certain criteria being met, which is a combination of unit cost and revenue. And so once those are met, certain amounts become payable over time. And there is about €“ so, if you look at that, in terms of what’s to go on that it’s about $35 million in all over the €“ again, think about it as over a 2-year period. So, that aspect and then Givaudan, John explained it I think as part of his remarks that beyond the $200 million upfront, there is $150 million milestones spread over the 3 years, which is relatively equally spread if production and supply go to plan. So, that’s kind of how you need to think about that aspect. So, these are the three that should be on your mind.
