Dsm-firmenich Ag · EURONEXT:DSFIR
Dsm-firmenich — Royal DSM — Shareholder Meeting (April 2015)
28 slides from Dsm-firmenich's shareholder meeting presentation, Apr 30, 2015
Slide 1: Annual Results 2014
Annual Results 2014 Feike Sijbesma, CEO / Chairman Managing Board Annual General Meeting April 30 2015 Page
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 reade
Slide 3: WFP fundraising for Nepal
WFP fundraising for Nepal • Earthquake in Nepal: thousands of people have died; 8 million people in distress; almost 1.5 million people are in need of food aid • The World Food Program of the UN is a strategic partner of DSM and is raising money to deliver food and supplies to Nepal • DSM calls empl
Slide 4: DSM Year in review 2014 [movie]
DSM Year in review 2014 [movie] Page 3
Slide 5: Highlights year 2014
Highlights year 2014 • 2014 sales of ~€9.2 billion with 3% organic growth This includes ~€ 2.1 billion sales of the activities for which we announced a partnership (polymer intermediates, composite resins) in March 2015, of which DSM remains a 35% shareholder This excludes ~€ 1.1 billion pro-forma (
Slide 6: Highlights year 2014 cont.
Highlights year 2014 cont. Impressive progress on strategy • Continued delivery on the strategic value drivers High Growth Economies, Innovation and Sustainability • DSM significantly transformed, including value creating partnerships Partnerships in Pharma (DPx, DSP) Partnership in Polymer Intermed
Slide 7: Results full year 2014 - Key figures
Results full year 2014 - Key figures (€ million) FY 2014 FY 2013 % Continuing operations before exceptional items: Net Sales 9,181 8,858 4% EBITDA 1,168 1,261 -7% EPS (€) 2.42 2.84 -15% Core EPS (€)* 2.85 3.19 -11% Total DSM before exceptional items: Net Sales 9,283 9,429 -2% EBITDA 1,166 1,261 -8%
Slide 8: EBITDA – development full year 2014
EBITDA – development full year 2014 EBITDA (€ million) FY 2014 FY 2013 % Nutrition 850 914 -7% Performance Materials 343 319 8% Polymer Intermediates 83 113 -27% Innovation Center -18 -9 Corporate Activities -90 -76 Continuing Operations 1,168 1,261 -7% • Nutrition EBITDA declined 7%, despite strong
Slide 9: Headwinds impacting 2014 Nutrition growth & margin
Headwinds impacting 2014 Nutrition growth & margin Topic Remarks/ actions Vitamin E: price decline in • Actively protect market share leveraging our low cost base Vitamin E due to intensified • Further reduce costs competition • Expand market: leverage strong science to move customers to increased i
Slide 10: Dividend proposal to AGM: stable at € 1.65
Dividend proposal to AGM: stable at € 1.65 • Dividend policy “stable and preferably rising” Dividend per ordinary share (€) • Proposal to AGM on 30 April 2015: Maintain the € 1.75 dividend of €1.65 per ordinary share – € 0.55 interim dividend (paid in August’14) € 1.50 – € 1.10 final dividend (payab
Slide 11: Overview
Overview • 2014 Operational performance • Good progress on strategy • Partnership with CVC • Highlights Q1 2015 Page 10
Slide 12: Megatrends more significant than ever; driving our growth
Megatrends more significant than ever; driving our growth Health & Wellness Global Shifts Climate & Energy Aging population Population growth Sustainability concerns Healthcare issues Urbanization drive Resources constraints Food composition Wealth increase Energy concerns Health Nutrition Materials
Slide 13: DSM in motion: driving focused growth
DSM in motion: driving focused growth Creating sustainable value along all growth drivers Page 12
Slide 14: Significantly expanding global presence
Significantly expanding global presence Sales by destination (FY 2014) • Sales to High Growth Economies (HGEs) increased from 32% in 2010 to 43% in 2014 North 19% High Growth America Economies • Current slowdown HGEs likely not structural 43% • DSM will continue to expand presence in HGEs (incl. Afr
Slide 15: Innovation driving higher growth and margins
Innovation driving higher growth and margins • DSM strongly committed to innovation in existing businesses as well as in emerging business platforms • Good progress achieved: Sales from innovative products / solutions, introduced over last 5 years, account for 18% of 2014 sales (target 20%) DSM’s FE
Slide 16: Sustainability is a strong business driver
Sustainability is a strong business driver • FY 2014 ECO+ sales at 49%; well on track towards 2015 aspiration of 50% • More than 90% of DSM’s innovation pipeline is ECO+, strongly driving a greener portfolio • ECO+ sales have grown ~10%/year since 2010 • ECO+ sales have significantly higher contribu
Slide 17: Active portfolio management delivering results
Active portfolio management delivering results • More than €2.8bn of acquisitions since 2010: Created a leading Nutrition business position Established a new business: DSM Biomedical • Value creation confirmed: Martek/Fortitech/Tortuga: ~2.0x EV paid Ocean Nutrition Canada: ~1.5x EV paid • Partnersh
Slide 18: Significant value creation by portfolio transformation
Significant value creation by portfolio transformation 1995 2000 2005 2010 2014 pro-forma* Continuous shift to higher quality portfolio with reduced cyclicality * Core is pro-forma split after deconsolidation of Polymer Intermediates and Composite Resins Page 1717
Slide 19: Established a unique business in Nutrition
Established a unique business in Nutrition Active ingredients Forms & delivery systems Premixes Solutions GLOBAL PRODUCER LOCAL SOLUTION PROVIDER Estimated average EBITDA margins ~15% ~ 7.5% for the steps in the value chain Broad portfolio providing resilience Broadest portfolio of ingredients Sales
Slide 20: Diversified into multiple end-markets
Diversified into multiple end-markets Other Dairy RTE meals Ruminants Soups/Sauces/Spreads 13% Food & Wine-Beer-Fruit drinks 24% Beverages Aqua 4% 9% Swine 8% Infant nutrition 20% 16% Poultry 4% Dietary Supplements Personal care End-market diversification as strong natural hedge providing resilience
Slide 21: Clear Performance Materials strategy
Clear Performance Materials strategy Differentiated strategy: • Accelerate: Accelerate growth in highly innovative markets to fully benefit from megatrends • Strengthen: Combine sustainable innovation sales growth with margin optimization programs • Restructure*: Composite Resins* * Partnership with
Slide 22: Value creating emerging business areas established
Value creating emerging business areas established DSM Biomedical DSM Bio-based Products & DSM Advanced Surfaces Services Innovative materials for Advanced enzymes and Smart coatings and surface Medical Devices delivering yeasts for Bio-Energy & technologies boosting solar clinical improvements Bio-
Slide 23: POET-DSM: Grand Opening [movie]
POET-DSM: Grand Opening [movie] Page 22
Slide 24: Overview: Partnership with CVC
• 2014 Operational performance • Good progress on strategy • Partnership with CVC • Highlights Q1 2015 Page 23
Slide 25: Partnership announced with CVC
Partnership announced with CVC • Partnership (NewCo) for Caprolactam, Acrylonitrile & Composite Resins business : 65% CVC, 35% DSM • Pro-forma 2014 numbers for NewCo: Third party sales of ~€2.1 billion EBITDA of €106 million (excluding non controlling interest) ~ 1,950 Employees • The enterprise val
Slide 26: Overview
Overview • 2014 Operational performance • Good progress on strategy • Partnership with CVC • Highlights Q1 2015 Page 25
Slide 27: Highlights Q1 2015
Highlights Q1 2015 • Sales of €1,886 million, up 11%, including 2% organic sales growth • EBITDA up 4% to €248 million • Nutrition delivered good organic growth of 4%, driven by volumes in animal nutrition • Performance Materials continued to improve EBITDA through higher volumes and margins • Cash
Slide 28: Bright Science. Brighter Living.