Dsm-firmenich Ag · EURONEXT:DSFIR
Dsm-firmenich — Royal DSM — H1 2019 Earnings Presentation
22 slides from Dsm-firmenich's earnings presentation, 2019
Slide 1: Presentation to Investors: H1 2019 results
Presentation to Investors H1 2019 results ROYAL DSM NUTRITION HEALTH SUSTAINABLE LIVING
Slide 2: Quote from the CEO
Quote from the CEO Feike Sijbesma “I am pleased to report a good performance for the first half year, achieved against a challenging macro-economic environment. The Nutrition business saw continued good business conditions and delivered a strong performance, demonstrating the quality of its innovati
Slide 3: H1 2019 Highlights
H1 2019 Highlights § DSM reports a good H1 § Results compared to the Underlying business in H1 2018: ü Group sales +3%, Adjusted EBITDA up 12% (including 3% from IFRS 16) ü Nutrition: organic sales +4%, Adjusted EBITDA up 13% (including 2% from IFRS 16) ü Materials: organic sales -6%, Adjusted EBITD
Slide 4: Q2 2019 Highlights
Q2 2019 Highlights § DSM reports another good quarter § Results compared to the Underlying business in Q2 2018: ü Group sales +3%, Adjusted EBITDA up 10% (including 3% from IFRS 16) ü Nutrition: organic sales +4%, Adjusted EBITDA up 13% (including 3% from IFRS 16) ü Materials: organic sales -7%, Adj
Slide 5: Group Key Financials (H1 2019 vs H1 2018 excluding temporary vitamin effect)
Group Key Financials (comparison with H1 2018 excluding temporary vitamin effect) in € million H1 2019 H1 2018 % Change Underlying1 Temp. Total Underlying1 FX & Underlying1 Temporary Total business vitamin Group Organic ‘other’1 total vitamin Group effect growth growth effect Sales 4,568 4,429 365 4
Slide 6: Group Key Financials (Q2 2019 vs Q2 2018 excluding temporary vitamin effect)
Group Key Financials (comparison with Q2 2018 excluding temporary vitamin effect) in € million Q2 2019 Q2 2018 % Change Underlying1 Temp. Total Underlying1 FX & Underlying1 Temporary Total business vitamin Group Organic ‘other’1 total vitamin Group effect growth growth effect Sales 2,276 2,214 145 2
Slide 7: Group Key Financials (including temporary vitamin effect)
Group Key Financials (comparison with H1 2018 including temporary vitamin effect) in € million, including IFRS 16 impact, YTD where applicable H1 2019 H1 2018 % Change Q2 2019 Q2 2018 % Change Sales 4,568 4,794 -5% 2,276 2,359 -4% Adjusted EBITDA 862 1,046 -18% 438 508 -14% Adjusted EBITDA margin 18
Slide 8: Nutrition Key Financials
Nutrition Key Financials Underlying in € million (estimated) H1 2019 H1 2018 Q2 2019 Q2 2018 § ‘Underlying’ business is defined as the sales Sales 3,029 2,840 7% 1,512 1,410 7% Adjusted EBITDA1 639 564 13% 323 287 13% and Adjusted EBITDA, corrected for the Adjusted EBITDA margin (%) 1 21.1% 19.9% 21
Slide 9: Nutrition H1 2019 Business Overview
Nutrition H1 2019 Business Overview Sales bridge | H1 2018 to H1 2019 (€m) § H1 2019 sales: Nutrition saw good business conditions across regions and business segments. Nutrition realized 4% -volume driven- organic growth, against 10% in H1 2018. Total sales were 7% higher compared to H1 2018 includ
Slide 10: Animal Nutrition & Health Sales Overview
Animal Nutrition & Health Sales Overview Sales bridge | H1 2018 to H1 2019 (€m) § H1 2019 organic sales: The first six months saw continued good business conditions across all regions and species, except for China and South East Asia, where the African swine fever intensified. The impact for DSM con
Slide 11: Human Nutrition & Health Sales Overview
Human Nutrition & Health Sales Overview Sales bridge | H1 2018 to H1 2019 (€m) § H1 2019 organic sales: Overall, business conditions remained good. Early life nutrition, pharma and dietary supplements performed well, with especially a strong growth in i-Health. Food & beverage had a softer second qu
Slide 12: Other Nutrition
Other Nutrition Food Specialties – Personal Care – Andre Pectin § DSM’s other Nutrition activities which include Food Specialties, Personal Care, Aroma Ingredients and Hydrocolloids, continued to deliver a good performance in Q2 2019 with 8% organic sales growth in H1 2019. Personal Care showed a ve
Slide 13: Materials Sales Overview
Materials Sales Overview Sales bridge | H1 2018 to H1 2019 (€m) § Market conditions for some of DSM’s businesses remained challenging, especially in China. Automotive, building & construction and electrical & electronics markets experienced softness, while the market conditions in the other business
Slide 14: Materials Key Financials
Materials Key Financials in € million H1 2019 H1 2018 % Change Q2 2019 Q2 2018 % Change Sales 1,427 1,492 -4% 710 754 -6% 1 Adjusted EBITDA 262 261 0% 135 135 0% Adjusted EBITDA margin (%)1 18.4% 17.5% 19.0% 17.9% Adjusted EBIT 193 199 -3% 100 104 -4% Capital Employed 1,938 1,901 Average Capital Emp
Slide 15: Innovation Center Key Financials
Innovation Center Key Financials in € million H1 2019 H1 2018 % Change Q2 2019 Q2 2018 % Change Sales 90 75 20% 43 39 10% Adjusted EBITDA1 11 0 5 1 Adjusted EBIT -6 -12 -5 -6 Capital Employed 606 589 1 Including IFRS 16 impact of €0 million in Q2 2019 and €1 million in H1 2019 § Biomedical delivered
Slide 16: Cash Flow and (operating) Working Capital
Cash Flow and (operating) Working Capital Overview Condensed Cash Flow and (Operating) Working Capital End of period Total Working Capital % in € million H1 2019 H1 2018 Q2 2019 Q2 2018 H1 2018 H1 2019 Cash provided by Operating Activities 507 503 306 193 - Cash from APM adjustments 23 41 12 22 30.0
Slide 17: Net Debt and ROCE
Net Debt and ROCE Overview Net debt (€ million) ROCE% (underlying business) – incl IFRS16 800 H1 2018 H1 2019 589 30.0 21.6 20.0 400 15.4 15.1 15.0 13.8 13.1 113 0 - End of Year 2018 End of H1 2019 Total DSM Nutrition Materials § Net debt was €589 million, up from €113 million at the end of 2018, du
Slide 18: Continued step up in Sustainability
Continued step up in Sustainability H1 2019 highlights Planet – DSM further improved the environmental impact of its own operations: § Well on track to meet this year’s targets regarding greenhouse gas, energy efficiency and purchased renewable electricity § Increase in sales from Brighter Living So
Slide 19: Outlook 2019
Outlook 2019 § DSM maintains its full year outlook as provided at Q1 2019: DSM expects to deliver a full year 2019 high single digit increase in Adjusted EBITDA compared to prior year Underlying Adjusted EBITDA (pre-temporary vitamin effect), together with an improvement in Underlying Adjusted Net O
Slide 20: Share Buy-Back program update
Share Buy-Back program update § On 1 April 2019, DSM commenced its ordinary share repurchase program of an aggregate market value of €1 billion, with the intention to reduce its issued capital, as first announced on 14 February 2019. This program is in addition to the regular repurchase programs to
Slide 21: Safe Harbor Statement
Safe Harbor Statement 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
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