Slide 1: Presentation to investors
Presentation to investors Full Year 2017 results ROYAL DSM HEALTH NUTRITION MATERIALS
Slide 2: Safe harbor statement
Safe harbor statement § This presentation may contain forward-looking statements with respect to DSM’s future (financial) performance and position. Such statements are based on current expectations, estimates and projections of DSM and information currently available to the company. DSM cautions rea
Slide 3: Highlights Full Year 2017
Highlights Full Year 2017 § Strong performance in Q4, contributing to an excellent year § Sales up 9% to €8,632m, with 9% organic growth mainly from volume growth § Adjusted EBITDA up 15% to €1,445m, driven by both Nutrition and Materials § ROCE up 190 bps to 12.3% § Adjusted Net Profit up 36% to €7
Slide 4: Highlights Q4 2017
Highlights Q4 2017 § DSM reports another strong quarter § Sales up 8% to €2,176m, with 12% organic growth, driven by volumes and prices § Adjusted EBITDA up 14% to €359m § Nutrition: 13% organic sales growth; Adjusted EBITDA up 12% § Materials: 5% volume growth; Adjusted EBITDA up 13% Page 3
Slide 5: Quote from CEO Feike Sijbesma
Quote from CEO Feike Sijbesma § “We are delighted to report again an excellent year, as we significantly exceeded our Strategy 2018 targets for EBITDA, ROCE and organic sales growth. Our focus on driving above market growth while relentlessly pursuing efficiency initiatives and maintaining capital d
Slide 6: Outlook 2018
Outlook 2018 § DSM expects to deliver full-year 2018 results above the targets set in Strategy 2018, with an Adjusted EBITDA growth somewhat up from high single-digit to double-digit and a ROCE growth above 100 basis points. The expected substantial negative foreign exchange effects, based on curren
Slide 7: Group | Key financials
Group | Key financials full year in € million 2017 2016 % Change Q4 2017 Q4 2016 % Change Sales 8,632 7,920 9% 2,176 2,015 8% Adjusted EBITDA 1 1,445 1,262 15% 359 315 14% Adjusted EBITDA margin1 16.7% 15.9% 16.5% 15.6% ROCE (%) 12.3% 10.4% Adjusted net profit1,2 706 520 36% 202 130 55% Net profit -
Slide 8: Group | Net sales development
Group | Net sales development full year in € million 2017 2016 % Change Volume Price/mix FX Other Sales 8,632 7,920 9% 7% 2% -1% 1% Nutrition 5,579 5,169 8% 7% 1% 0% 0% Materials 2,825 2,513 12% 7% 6% -2% 1% Innovation Center 169 167 Corporate Activities 59 71 in € million Q4 2017 Q4 2016 % Change V
Slide 9: Group | EBITDA development
Group | EBITDA development full year in € million 2017 2016 % Change Q4 2017 Q4 2016 % Change Adjusted EBITDA 1 1,445 1,262 15% 359 315 14% Nutrition 1,053 931 13% 267 238 12% Materials 488 435 12% 119 105 13% Innovation Center 9 1 4 -1 Corporate Activities -105 -105 -31 -27 1. Continuing operations
Slide 10: Nutrition | Sales overview
Nutrition | Sales overview Sales bridge | FY 2016 to FY 2017 Sales bridge | Q4 2016 to Q4 2017 5,579 1% 0% 0% 4% -6% 1,428 1% 7% 9% 5,169 1,321 FY 2016 Volume Price/mix FX Other FY 2017 Q4 2016 Volume Price/mix FX Other Q4 2017 § Full Year 2017 sales increased by 8% organically when compared to 2016
Slide 11: Nutrition | Key financials
Nutrition | Key financials full year in € million 2017 2016 % Change Q4 2017 Q4 2016 % Change Sales 5,579 5,169 8% 1,428 1,321 8% Adjusted EBITDA 1,053 931 13% 267 238 12% Adjusted EBITDA margin (%) 18.9% 18.0% 18.7% 18.0% Adjusted EBIT 770 645 19% 195 160 22% Capital Employed 5,420 5,537 Average Ca
Slide 12: Animal Nutrition & Health | Sales overview
Animal Nutrition & Health | Sales overview Sales bridge | FY 2016 to FY 2017 Sales bridge | Q4 2016 to Q4 2017 2,660 -1% 1% 739 2% 6% -6% 2% 9% 12% 2,399 646 FY 2016 Volume Price/mix FX Other FY 2017 Q4 2016 Volume Price/mix FX Other Q4 2017 § Full Year 2017 sales were exceptionally strong, with 11%
Slide 13: Human Nutrition & Health | Sales overview
Human Nutrition & Health | Sales overview Sales bridge | FY 2016 to FY 2017 Sales bridge | Q4 2016 to Q4 2017 1% -1% 1,939 -0% 4% -7% 6% 443 5% 0% 1,822 434 FY 2016 Volume Price/mix FX Other FY 2017 Q4 2016 Volume Price/mix FX Other Q4 2017 § Full Year 2017 sales were up 6%, led by 7% organic growth
Slide 14: Food Specialties and Personal Care & Aroma Ingredients | Overview
Food Specialties and Personal Care & Aroma Ingredients | Overview full year in € million 2017 2016 % Change DSM Food Specialties Sales 541 536 1% Personal Care & Aroma Ingredients Sales 353 337 5% § DSM Food Specialties – FY 2017 sales were up 1% versus 2016 with an organic growth of 3%, driven by:
Slide 15: Materials | Sales overview
Materials | Sales overview Sales bridge | FY 2016 to FY 2017 Sales bridge | Q4 2016 to Q4 2017 2,825 -2% 1% 6% -4% 7% 693 0% 7% 5% 2,513 639 FY 2016 Volume Price/mix FX Other FY 2017 Q4 2016 Volume Price/mix FX Other Q4 2017 § Full Year 2017 sales up 12% versus the same period last year. Strong grow
Slide 16: Materials | Sales overview (cont’d)
Materials | Sales overview (cont’d) § DSM Engineering Plastics continued to successfully shift its portfolio toward higher-value, sustainable, specialty materials aimed at electrics & electronics and automotive applications, markets within which DSM has a strong position – DSM made good progress wit
Slide 17: Materials | Key financials
Materials | Key financials full year in € million 2017 2016 % Change Q4 2017 Q4 2016 % Change Sales 2,825 2,513 12% 693 639 8% Adjusted EBITDA 488 435 12% 119 105 13% Adjusted EBITDA margin (%) 17.3% 17.3% 17.2% 16.4% Adjusted EBIT 361 311 16% 86 77 12% Capital Employed 1,786 1,807 Average Capital E
Slide 18: Innovation | Key financials
Innovation | Key financials full year in € million 2017 2016 % Change Q4 2017 Q4 2016 % Change Sales 169 167 1% 43 41 5% Adjusted EBITDA 9 1 4 -1 Adjusted EBIT -30 -24 -1 -9 Capital Employed 562 576 § The Innovation Center made good progress over the year delivering on its Strategy 2018 goals to ext
Slide 19: Corporate Activities | Key financials
Corporate Activities | Key financials full year in € million 2017 2016 Q4 2017 Q4 2016 Sales 59 71 12 14 Adjusted EBITDA -105 -105 -31 -27 Adjusted EBIT -144 -141 -40 -38 § Full Year 2017 Adjusted EBITDA stayed in line with last year mainly as a result of the contribution of the cost savings program
Slide 20: Key joint ventures/associates | Financial overview
Key joint ventures/associates | Financial overview full year in € million, based on 100% 2017 2016 % Change Q4 2017 Q4 2016 % Change DSM Sinochem Sales 440 431 2% 119 102 17% Adjusted EBITDA% 17% 14% 23% 15% ChemicaInvest Sales 1,933 1,802 7% 458 502 -9% Adjusted EBITDA% 11% 6% 15% 13% § DSM Sinoche
Slide 21: Joint ventures/associates | Net result contribution
Joint ventures/associates | Net result contribution full year in € million 2017 2016 Q4 2017 Q4 2016 DSM Sinochem (50%) 9 6 5 1 Patheon1 7 10 0 16 ChemicaInvest (35%) 2 5 -9 5 0 Other associates / joint ventures -25 -25 -7 -13 Total before APM adjustments -4 -18 3 4 APM adjustments 1,158 212 6 -5 Sh
Slide 22: Cash flow and Working Capital | Overview
Cash flow and Working Capital | Overview Cash Flow, Capital Expenditures and Financing Average Working Capital % full year 40% 2016 2017 in € million 2017 2016 Q4 2017 Q4 2016 Cash from Operating Activities 996 1,018 377 374 30% 28.1% Total Working Capital 1,499 1,481 26.6% Total Working Capital as
Slide 23: Net debt and ROCE | Overview
Net debt and ROCE | Overview Net debt ROCE 3,000 25% 2016 2017 20.0% 20% 17.6% 2,070 2,000 14.1% 15% 12.3% 12.0% 10.4% 10% 1,000 742 5% 0 0% 2016 2017 Total DSM Nutrition Materials § Net debt was €742 million compared to €2,070 million end of 2016 – The decrease of €1,328 million was mainly due to t
Slide 24: Dividend proposal to AGM: Increase dividend to €1.85 per ordinary share
Dividend proposal to AGM: Increase dividend to €1.85 per ordinary share § Dividend policy “stable and preferably rising” Dividend per ordinary DSM share - € § Reflecting its confidence in the financial performance of the company, DSM proposes to increase the dividend (Interim) dividend per share § P
Slide 25: Update on Strategy 2018 | Driving Profitable Growth
Update on Strategy 2018 | Driving Profitable Growth
Slide 26: Strategy 2018 | Summary and YTD achievements
Strategy 2018 | Summary and YTD achievements Two headline High single-digit percentage High double-digit basis point financial targets annual Adjusted EBITDA growth annual ROCE growth Achievements to date: § 2016: 17% § 2016: 280 bps § 2017: 15% § 2017: 190 bps Clear actions identified to Businesses
Slide 27: DSM remains ideally positioned to profit from societal megatrends
DSM remains ideally positioned to profit from societal megatrends Page 26
Slide 28: DSM is confident on further sales growth and EBITDA margin improvements
DSM is confident on further sales growth and EBITDA margin improvements Market growth Growth Adj. EBITDA margin Towards Nutrition 2-3% ~5% 20% Above Materials ~3% ~5% 15% Page 27
Slide 29: Upside will come from innovation-driven growth
Upside will come from innovation-driven growth Nutrition Materials Emerging Business Areas § Fermentative § ForTii® (HPPO § 3D options (combine stevia polymer) Somos, Resins, § Algae-based omega-3 Biomedical & § Niaga® (recycle Engineering Plastics) for aquaculture carpets) § Clean cow § Decovery® (
Slide 30: Sustainability aspirations are well aligned with the Sustainable Development Goals
Sustainability aspirations are well aligned with the Sustainable Development Goals 1. Please see DSM’s Integrated Annual Report 2016 for definitions and additional information Page 29
Slide 31: DSM has stepped up its sustainability aspirations
DSM has stepped up its sustainability aspirations1 Creating value for all stakeholders 65% 65% § Brighter living § GHG § Energy § 50% purchased § Employee § Safety: § Leading in solutions 65% efficiency efficiency from engagement Frequency reporting of DSM improvements improvements renewable favorab
Slide 32: DSM will continue to drive profitable growth!
DSM will continue to drive profitable growth! § Continued delivery in 2018 § Confident DSM will continue to outgrow its markets through organic and innovation driven growth § Optionality of enhanced growth through M&A § Regular strategic review process brought forward Page 31
Slide 33: BRIGHT SCIENCE. BRIGHTER LIVING
BRIGHT SCIENCE. BRIGHTER LIVING