Dsm-firmenich Ag · EURONEXT:DSFIR
Dsm-firmenich — Royal DSM — H1 2020 Earnings Presentation
31 slides from Dsm-firmenich's earnings presentation, July 2020
Slide 1: Presentation to Investors H1 2020 results
Presentation to Investors H1 2020 results
Slide 2: Co-CEOs statement
Co-CEOs statement “Our teams continued to successfully navigate the challenging global environment, with Q2 developments in line with the expectations we set out in May. Business conditions for Nutrition were good overall in the first half, with spikes in demand for Animal Nutrition in Q1 and Human
Slide 3: H1 2020 Highlights
H1 2020 Highlights DSM reports a solid first half in a challenging COVID-19 environment Group sales -1% and Adjusted EBITDA -4% Nutrition: sales +6%, organic sales +5%, Adjusted EBITDA +5% Materials: sales -16%, volumes -14%, Adjusted EBITDA -28% Adjusted net profit down 4% to €399m. Net p
Slide 4: Q2 2020 Highlights
Q2 2020 Highlights Group sales -2% and Adjusted EBITDA –8%: Nutrition: sales +9%, organic sales +9%, Adjusted EBITDA +8% Materials: sales –25%, volumes –21%, Adjusted EBITDA –47% Adjusted net profit down 15% to €183m. Total net profit: €102m Adjusted Net Operating Free Cash Flow of €191m,
Slide 5: Key Financials H1 2020
Key Financials H1 2020 in € million H1 2020 H1 2019 % Change Volume Price/mix FX Other Sales 4,532 4,568 -1% -1% -1% 0% 1% Nutrition 3,224 3,029 6% 5% 0% -1% 2% Materials 1,194 1,427 -16% -14% -3% 1% 0% Adjusted EBITDA 825 862 -4% Nutrition 674 639 5% Materials 189 262 -28% Innovation 11 11 Corporat
Slide 6: Key Financials Q2 2020
Key Financials Q2 2020 in € million Q2 2020 Q2 2019 % Change Volume Price/mix FX Other Sales 2,239 2,276 -2% -2% 0% -1% 1% Nutrition 1,649 1,512 9% 6% 3% -2% 2% Materials 534 710 -25% -21% -4% 0% 0% Adjusted EBITDA 402 438 -8% Nutrition 350 323 8% Materials 71 135 -47% Innovation 6 5 Corporate -25 -
Slide 7: Key Financials Group
Key Financials Group in € million H1 2020 H1 2019 % Change Q2 2020 Q2 2019 % Change Sales 4,532 4,568 -1% 2,239 2,276 -2% Adjusted EBITDA 825 862 -4% 402 438 -8% Adjusted EBITDA margin 18.2% 18.9% 18.0% 19.2% ROCE (%) 10.8% 13.1% Effective tax rate1 18.0% 18.0% Adjusted net profit2 399 415 -4% 183 2
Slide 8: Nutrition: Strategic progress
Nutrition Strategic progress Early in the year, DSM launched the Fit for Growth program in Nutrition, designed to service its customers better and position DSM well to capture the growth opportunities in various end markets. A new organizational structure, which enables a more differentiated go- t
Slide 9: Nutrition: Business overview
Nutrition Business overview Sales bridge | H1 2019 to H1 2020 (€m) H1 2020 sales DSM’s Nutrition business has proven to be very resilient in the current challenging conditions. H1 saw 5% organic sales growth, fully driven by volumes, of which about 1-2% being a COVID-19 benefit. Total sales were 6
Slide 10: Nutrition: Key financials
Nutrition Key financials in € million H1 2020 H12019 % Change Q2 2020 Q2 2019 % Change Sales 3,224 3,029 6% 1,649 1,512 9% Adjusted EBITDA 674 639 5% 350 323 8% Adjusted EBITDA margin (%) 20.9% 21.1% 21.2% 21.4% Adjusted EBIT 478 462 249 2344 6% Capital Employed 7,481 6,289 Average Capital Employed
Slide 11: Animal Nutrition & Health: Strategic progress
Animal Nutrition & Health Strategic progress With its “Global Products-Local Solutions” model, DSM is the leading global solution provider of advanced animal feed, with a strong innovation portfolio which includes amongst others BalanciusTM eubiotics for poultry gut health, Veramaris algae-based O
Slide 12: Animal Nutrition & Health: Sales overview
Animal Nutrition & Health Sales overview Sales bridge | H1 2019 to H1 2020 (€m) H1 2020 organic sales In the first half, Animal Nutrition delivered 10% organic growth, with a 7% volume increase, due to a strong COVID-19 effect in Q1. This accelerated purchasing effect in Q1 started to reverse in Q
Slide 13: Human Nutrition & Health: Strategic progress
Human Nutrition & Health Strategic progress Human Nutrition & Health focuses on moving closer to the customer by strengthening the solutions-led value propositions of its very broad global products and services portfolio and creating end-to-end customer experiences through enhanced innovation and
Slide 14: Human Nutrition & Health: Sales overview
Human Nutrition & Health Sales overview Sales bridge | H1 2019 to H1 2020 (€m) H1 2020 organic sales In the first six months, Human Nutrition delivered 2% organic growth, with volumes up 6% and prices down 4%. Volumes were positively impacted by COVID-19 changes in purchasing patterns emerging at
Slide 15: Other Nutrition activities
Other Nutrition activities DSM’s other Nutrition activities, which include Food Specialties, Hydrocolloids, and Personal Care & Aroma Ingredients, delivered 3% organic growth in Q2, resulting in a flat organic sales development in the first half year, with a good performance in Food Specialties an
Slide 16: Materials: Strategic progress
Materials Strategic progress Materials continues its transformation into a high-growth, higher- margin specialty business, focused on Improved Health & Living, Green Products & Applications and New Mobility & Connectivity Customers’ operations and end user demand were impacted by COVID-19. In re
Slide 17: Materials: Business Overview H1
Materials Business Overview Sales bridge | H1 2019 o H1 2020 (€m) H1 2020 Sales development After a solid start to the year, Materials was affected by COVID-19, with demand deteriorating abruptly at the end of Q1, which continued in Q2, with only a slow recovery towards the end of the Q2 period
Slide 18: Materials: Business Overview Q2
Materials Business Overview Sales bridge | Q2 2019 to Q2 2020 (€m) Q2 2020 Sales development Materials reported 21% lower volumes, driven by COVID-19 effects. The rapidly deteriorating demand at the end of Q1 fully materialized in Q2 as customer operations were impacted by COVID-19 driven lock-dow
Slide 19: Materials: Key Financials
Materials Key Financials in € million H1 2020 H12019 % Change Q2 2020 Q2 2019 % Change Sales 1,194 1,427 -16% 534 710 -25% Adjusted EBITDA 189 262 -28% 71 BS 47% Adjusted EBITDA margin (%) 15.8% 18.4% 13.3% 19.0% Adjusted EBIT 119 193 -38% 36 100 64% Capital Employed 1,931 1,938 i Average Capital Em
Slide 20: Innovation Center: Key Financials
Innovation Center Key Financials in € million H1 2020 H1 2019 % Change Q2 2020 Q2 2019 % Change Sales 94 90 4% 46 43 7% Adjusted EBITDA 11 11 6 5 Adjusted EBIT -11 -6 -6 -5 Capital Employed 612 606 H1 sales were up 4%, driven by DSM Biomedical good sales growth and by DSM Bio-based Products & Serv
Slide 21: Corporate Activities: Key Financials
Corporate Activities Key Financials in € million H1 2020 H1 2019 Q2 2020 Q2 2019 Sales 20 22 10 11 Adjusted EBITDA -49 -50 -25 -25 Adjusted EBIT -72 -81 -37 -40 H1 Adjusted EBITDA was in line with previous year 21
Slide 22: Cash Flow and Working Capital
Cash Flow and Working Capital Condensed Cash Flow statement and (Operating) Working Capital Average Total Working Capital as % of Sales in € million H1 2020 H1 2019 Q2 2020 Q2 2019 H1 2019 Cash provided by Operating Activities 584 507 297 306 30 27.2 27.0 H1 2020 - Cash from APM adjustments 42 23 22
Slide 23: Net debt and ROCE
Net debt and ROCE Net debt (€ million) ROCE (%) 2,500 30 2,102 H1 2019 H1 2020 2,000 20.0 1,500 15.1 13.7 1,144 15 13.1 12.2 10.8 1,000 500 0 0 End of Year 2019 End of H1 2020 Total DSM Nutrition Materials Net debt increased mainly due to the execution of the SBB program and the Glycom acquistion.
Slide 24: Outlook 2020
Outlook 2020 DSM reiterates the full year outlook given at Q1 2020 results, which reflects the considerable uncertainty as to how the COVID-19 pandemic will develop and what will be the global ramifications. Within this context, DSM expects Nutrition to deliver at least a mid-single digit increase i
Slide 25: Sustainability update
Sustainability update Continued step-up in sustainability leadership 1) DSM estimates the effect of the underlying structural improvements in absolute GHG emissions to be roughly 18% versus 2016, while the total absolute GHG emission reduction (including volume and product mix effects) versus 2016 i
Slide 26: Health & Safety is top priority
Health & Safety is top priority Living through the global human impact of the COVID-19 pandemic DSM’s long-standing priority remains the health, safety and well-being of its employees and partners, and this remains especially true during the COVID- 19 pandemic very early actions including workin
Slide 27: Taking our responsibility towards society
Taking our responsibility towards society Committed to a more sustainable, fair and resilient future DSM is applying its scientific know-how and resources, including financial contributions, to help ease the impact of COVID-19 in society at large Donating immunity-optimizing vitamins and probiot
Slide 28: DSM Factbook
DSM Factbook For more information on DSM’s portfolio, products & strategy, please visit our Factbook online: https://www.dsm.com/corporate/investors/key-facts- figures-overview/key-market-data-factbooks.html 28
Slide 29: DSM Virtual Capital Markets Day 4 November 2020
DSM Virtual Capital Markets Day Save the Date: 4 November 2020
Slide 30: Safe harbor
Safe harbor This presentation may contain forward-looking statements with respect to DSM’s future performance and position. Such statements are based on current expectations, estimates and projections of DSM and information currently available to the company. DSM cautions readers that such statement
Slide 31: Bright Science. Brighter Living.