Slide 1: Presentation to Investors Q3 2016 results
Presentation to Investors Q3 2016 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 reade
Slide 3: Highlights Q3 2016
Highlights Q3 2016 § DSM reports another strong quarter § Group sales up at €1,998m, with 3% organic growth, and EBITDA up 13% to €323m § Nutrition: 5% organic sales growth, EBITDA up 8% § Materials: 5% volume growth, EBITDA up 16% § Group ROCE improved to 10.6% (end Q3 2015: 7.9%) driven by higher
Slide 4: Quote from CEO Feike Sijbesma
Quote from CEO Feike Sijbesma “We are pleased to report another quarter of strong operational and financial progress. This was driven by both Materials and Nutrition, reflecting the progress we are making on delivering on our Strategy 2018 through our growth initiatives as well as ambitious improvem
Slide 5: Key financials | Q3 2016
Key financials | Q3 2016 January - September in € million Q3 2016 Q3 2015 % Change 2016 2015 % Change Sales - Continuing Operations 1,998 1,945 3% 5,905 5,796 2% EBITDA - Continuing Operations 323 287 13% 9470 8140 16% EBITDA margin - Continuing operations 16.2% 14.8% 16.0% 14.0% EBIT - Continuing O
Slide 6: Net sales development | Q3 2016
Net sales development | Q3 2016 in € million Q3 2016 Q3 2015 % Change Volume Price/mix FX Other Sales - Continuing Operations 1,998 1,945 3% 3% 0% 0% 0% Nutrition 1,303 1,253 4% 3% 2% -1% 0% Materials 634 631 0% 5% -5% -1% 1% Innovation Center 43 42 2% 2% 0% 0% 0% Corporate Activities 18 19 Disconti
Slide 7: Net sales development | YTD Q3 2016
Net sales development | YTD Q3 20161 January - September in € million 2016 2015 % Change Volume Price/mix FX Other Sales - Continuing Operations 5,905 5,796 2% 5% -1% -2% 0% Nutrition 3,848 3,699 4% 5% 1% -3% 1% Materials 1,874 1,927 -3% 3% -6% -1% 1% Innovation Center 126 115 10% 10% 0% -1% 1% Corp
Slide 8: EBITDA development | Q3 2016
EBITDA development | Q3 2016 January - September in € million Q3 2016 Q3 2015 % Change 2016 2015 % Change EBITDA - Continuing Operations 323 287 13% 947 814 16% Nutrition 231 213 8% 693 616 13% Materials 118 102 16% 330 294 12% Innovation Center 1 0 2 -8 Corporate Activities -27 -28 -78 -88 Disconti
Slide 9: Nutrition | Sales overview
Nutrition | Sales overview Sales bridge – Q3 2015 to Q3 2016 Sales bridge – YTD Q3 2015 to YTD Q3 20161 -1% 1,303 1% 0% 2% -3% 3,848 1% 5% 3% 1,253 3,699 Q3 2015 Volume Price/mix FX Other Q3 2016 YTD Q3 Volume Price/mix FX Other YTD Q3 2015 2016 § Q3 2016 sales increased by 4% compared to Q3 2015 –
Slide 10: Nutrition | Key financials
Nutrition | Key financials January - September in € million Q3 2016 Q3 2015 % Change 2016 2015 % Change Sales 1,303 1,253 4% 3,848 3,699 4% EBITDA 231 213 8% 693 616 13% EBITDA margin (%) 17.7% 17.0% 18.0% 16.7% EBIT 159 146 9% 485 412 18% Capital Employed 5,384 5,247 Average Capital Employed 5,334
Slide 11: Animal Nutrition & Health | Sales overview
Animal Nutrition & Health | Sales overview Sales bridge – Q3 2015 to Q3 2016 Sales bridge – YTD Q3 2015 to YTD Q3 20161 -0% 633 -0% 2% 5% -5% 1,796 -0% 6% 2% 593 1,739 Q3 2015 Volume Price/mix FX Other Q3 2016 YTD Q3 Volume Price/mix FX Other YTD Q3 2015 2016 1 YTD = January - September Page 10
Slide 12: Animal Nutrition & Health | Sales overview (cont’d)
Animal Nutrition & Health | Sales overview (cont’d) § Q3 2016 sales in animal nutrition delivered 7% organic growth – 2% volume growth and 5% improvement in price/mix compared to Q3 2015 – Volume growth of 2% was achieved against the background of strong comparative figures in 2015 (10% volume growt
Slide 13: Human Nutrition & Health | Sales overview
Human Nutrition & Health | Sales overview Sales bridge – Q3 2015 to Q3 2016 Sales bridge – YTD Q3 2015 to YTD Q3 20161 1,512 0% -1% -2% 2% -1% 497 0% 5% 5% 483 1,438 Q3 2015 Volume Price/mix FX Other Q3 2016 YTD Q3 Volume Price/mix FX Other YTD Q3 2015 2016 1 YTD = January - September Page 12
Slide 14: Human Nutrition & Health | Sales overview (cont’d)
Human Nutrition & Health | Sales overview (cont’d) § Q3 2016 organic sales growth in human nutrition was 4% compared to Q3 2015 – Driven by 5% higher volumes – Price/mix slightly down § Q3 2016 sales by segment: – Food & beverage performed well, driven by good sales volumes in Asia and Europe – Diet
Slide 15: Materials | Sales overview
Materials | Sales overview Sales bridge – Q3 2015 to Q3 2016 Sales bridge – YTD Q3 2015 to YTD Q3 20161 3% 5% -5% 1,927 -6% 631 634 1,874 -1% 1% -1% 1% Q3 2015 Volume Price/mix FX Other Q3 2016 YTD Q3 Volume Price/mix FX Other YTD Q3 2015 2016 1 YTD = January - September Page 14
Slide 16: Materials | Sales overview (cont’d)
Materials | Sales overview (cont’d) § Q3 2016 sales in line with Q3 2015 – 5% volume growth driven by specialties compensating for 5% lower prices, which reflected lower input costs – Currency effect was slightly negative in Q3 2016 driven by the US dollar § DSM Engineering Plastics – Volumes were s
Slide 17: Materials | Key financials
Materials | Key financials January - September in € million Q3 2016 Q3 2015 % Change 2016 2015 % Change Sales 634 631 0% 1,874 1,927 -3% EBITDA 118 102 16% 330 294 12% EBITDA margin (%) 18.6% 16.2% 17.6% 15.3% EBIT 86 69 25% 234 196 19% Capital Employed 1,798 1,833 Average Capital Employed 1,763 1,8
Slide 18: Innovation Center | Key financials
Innovation Center | Key financials January - September in € million Q3 2016 Q3 2015 % Change 2016 2015 % Change Sales 43 42 2% 126 115 10% EBITDA 1 0 2 -8 EBIT -5 -7 -15 -29 Capital Employed 553 563 § Q3 2016 sales were 2% above Q3 2015 – Increase fully driven by higher volumes in DSM Biomedical § Q
Slide 19: Corporate Activities | Key financials
Corporate Activities | Key financials January - September in € million Q3 2016 Q3 2015 2016 2015 Sales 18 19 57 55 EBITDA -27 -28 -78 -88 EBIT -35 -38 -103 -121 § Q3 2016 EBITDA improved by €1 million compared to Q3 2015 Page 18
Slide 20: Key Joint Ventures and Associates | Key financials
Key Joint Ventures and Associates | Key financials January - September in € million, based on 100% Q3 2016 Q3 2015 % Change 2016 2015 % Change DSM Sinochem: Sales 103 103 0% 329 332 -1% EBITDA% 13% 10% 14% 13% Patheon1: Sales 425 403 5% 1,216 1,177 3% EBITDA% 24% 23% 20% 20% 2 ChemicaInvest : Sales
Slide 21: Cash Flow and Working Capital development
Cash Flow and Working Capital development Cash flow Working Capital% - Annualized January - September 40% Q3 2015 Q3 2016 in € million Q3 2016 Q3 20151 YTD 2016 YTD 20151 EBITDA 323 290 947 908 30% Change in Working Capital 56 80 -171 -149 Income Tax -14 -28 -54 -63 Other -40 -61 -78 -314 20% Cash f
Slide 22: Net debt and ROCE development
Net debt and ROCE development Net debt1 ROCE 3,000 20% FY 2015 YTD 2016 15% 2,000 10% 1,000 5% 0 0% YE 2014 YE 2015 YTD 2016 Total DSM Nutrition Materials § Net debt decreased by €267 million compared to the end of 2015 and stood at €2,054 million – The decrease was mainly due to the receipt of divi
Slide 23: Business conditions
Business conditions Nutrition § Animal Nutrition – Robust market conditions – Continued weak market conditions in Latin America – Positive vitamin price effects § Human Nutrition – Robust market conditions in Asia and Europe – Continued softness in the Americas – Some volatility in the Chinese Infan
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