Dsm-firmenich Ag · EURONEXT:DSFIR
Dsm-firmenich — Merger or Acquisition (June 2022)
108 slides from Dsm-firmenich's merger presentation, Jun 13, 2022
Slide 1: Merger of DSM & Firmenich
Merger of DSM & Firmenich The Leading Creation and Innovation Partner in Nutrition, Beauty and Well-Being JUNE 13, 2022
Slide 2: Disclaimers
Disclaimers NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY (IN WHOLE OR IN PART) IN, INTO OR FROM ANY JURISDICTION in such securities in the United States. WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION. NOT FOR GENERAL RELE
Slide 3: Today's Agenda
Today’s Agenda Gilbert Ghostine Firmenich CEO 1. Introduction to Firmenich Sarah Reisinger Ilaria Resta Emmanuel Butstraen Firmenich CRO Firmenich President of Firmenich President of Perfumery Taste & Beyond 2. DSM Ivo Lansbergen Philip Eykerman Patrick Niels DSM President of Animal DSM President of
Slide 4: Today's Agenda
Today’s Agenda Geraldine Matchett DSM Co-CEO 3. DSM-Firmenich Strategic Vision Dimitri de Vreeze DSM Co-CEO 4. Q&A Gilbert Ghostine Firmenich CEO 4
Slide 5: Two Iconic Companies Coming Together
Two Iconic Companies Coming Together DSM Firmenich 150+ years of ground-breaking biotechnology & chemical synthesis 127-year heritage of purpose-led scientific discovery and innovation Led by purpose, developing world-changing innovations to benefit Outstanding track-record of developing cre
Slide 6: Introduction to Firmenich
01 Introduction to Firmenich
Slide 7: Firmenich: 127 Years of Business for Good
Firmenich: 127 Years of Business for Good Passion to Innovate with Lead with Differentiating Passion for Performance Guided by Our Values: Our Clients Ingredients Since 1895, Because We Care Leading portfolio of captive Customers and colleagues ingredients Leader and most vertically Creativity combi
Slide 8: Firmenich at a Glance
Firmenich at a Glance 4.5 Billion CHF 5.0% 20% Revenue Growth CAGR2 Adjusted EBITDA Margin1 Revenues1 9.3% of Revenues Invested Co-Leader in Perfumery & 100+ Ingredients 3 in R&D in 2021 Markets 127 ~10,000 7.5 Years Swiss and colleagues1 Sustainalytics Rating Family-Owned Industry-leading ESG posit
Slide 9: Leadership Across Business Units
Leadership Across Business Units TASTE & BEYOND PERFUMERY & INGREDIENTS Co-leadership position across Perfumery and Global player of scale Ingredients segments 33% 67% Leading innovator in Natural / Clean Label Leading portfolio of sustainable, renewable, Transformation, Better Nutrition (Su
Slide 10: Strong Performance Momentum in H1 FY22
Strong Performance Momentum in H1 FY22 REFLECTS JULY 2021 TO DECEMBER 2021 H1 FY22 REVENUE GROWTH IN FOCUS AREAS FINANCIAL PERFORMANCE Organic Sugar Plant-based Renewable E-commerce growth (%) 12% Fragrance Reduction Proteins CHFm +25% +141% +45% +50% 2,241 1,997 H1 FY22 REVENUE GROWTH IN KEY GEOGRA
Slide 11: Performance vs Competition
Performance vs Competition Long-Term Organic Revenue Growth (CAGR)1 FY YTD (July 2021 to March 2022) 6.5% 11.5% 11.0% 5.4% 9.1% 4.7% 3.8% 5.8% 11 (1) Reflects Firmenich management analysis for the period from December 2013 to December 2021.
Slide 12: Long-Term Resilient Financial Performance
Long-Term Resilient Financial Performance GDP+ REVENUE GROWTH AND ATTRACTIVE ADJ. EBITDA MARGIN OF 20%+ FY 2022 Guidance (July 2021 – June 2022) 9%+ Organic Growth CHFm CAGR1 4,272 (CHF 4.6bn+)1 +5% (organic) 3,874 3,878 CHF 900m+ Adj. EBITDA / CHF 910m+ PF for M&A3 2,891 21.5% 22.1% Mid-Term Ambiti
Slide 13: Track-Record of Innovation-Driven Growth, Underpinned by World-Class Science
Track-Record of Innovation-Driven Growth, Underpinned by World-Class Science 2021 R&D Spend as % of Revenues 9.3% 8.4% 6.1% 5.9% 1939 6 4,000+ Top 100 NOBEL PRIZE R&D CENTERS PATENTS INNOVATOR FOR Geneva IN FORCE Patent Castets Asset Index CHEMISTRY Princeton & San Diego Shanghai Gujarat We are driv
Slide 14: Digital Strategy: Create New Growth Drivers
Digital Strategy: Create New Growth Drivers “Fundamentally Digital” Strategy Launched in 2018 Enhance formulation activities and augment our creators Improve speed-to-market to support a lean business model Accelerate innovation and new ways of working Empower employees with fast, smart & au
Slide 15: Naturals Leadership at Core of Differentiation
Naturals Leadership at Core of Differentiation Leading Naturals Palette Innovation Transparency Naturals TogetherTM Firmenich Natural Center of Digital Traceability App (since 2014) Expertise in Grasse Path2FarmTM Presence at source Green GateTM / White EcoScent CompassTM 250k+ farme
Slide 16: ESG at the Core of Firmenich's Mission
ESG at the Core of Firmenich’s Mission and a Source of Competitive Advantage 37th of nearly 15,000 Top 1% of 85,000+ Recognized by 1 of only 2 companies 1 of 2 companies companies worldwide companies worldwide Ethisphere® as one of worldwide to be triple globally rated and industry leader the world’
Slide 17: Conclusion
Conclusion Passion to Innovate with Lead with Differentiating Our Clients: enabled by Ingredients: Vertically world-class science and integrated with naturals & renowned creators renewables Passion for Performance: Guided by Our Values: Consistent delivery driven by ESG leader investment in digital,
Slide 18: Research & Innovation
INTRODUCTION TO FIRMENICH Research & Innovation Sarah Reisinger
Slide 19: Industry-Leading R&D
Industry-Leading R&D CAPABILITIES STRATEGY DIFFERENTIATED CREATION BIOTECH, EXTRACTION & GREEN CHEMISTRY CHEMOSENSORY SCIENCES DEVELOP TOOLS TO DIFFERENTIATE OUR CREATORS’ TOOLKIT & DELIVER PERFORMANCE SUSTAINABILITY MATERIALS SCIENCE MICROBIOLOGY & SKIN BIOLOGY UPHOLD FIRMENICH VALUES & FULFILL CLI
Slide 20: Differentiated Creation
Differentiated Creation Proprietary Models for Creation AI & Receptor Biology for Discovery Taking guesswork out of the equation Developing technologies to accelerate on bloom and trail performance discovery of new molecules Technologies for Plant-based Foods Solutions for Malodor Control Recreating
Slide 21: Receptor-Based Malodor Control
Receptor-Based Malodor Control Technology is key to advancing sanitation and amplifying delight in multiple applications WITHOUT MALODOR CONTROL Score 8 6 Malodor 4 2 0 8 8 Pleasantness 6 6 Freshness malodor receptor malodor perception 4 4 2 2 0 0 Latrine Non-MOC* accord MOC* accord WITH MALODOR CON
Slide 22: New Technologies Augment Appeal of Meat Analogs
New Technologies Augment Appeal of Meat Analogs Recreating meat juiciness and delivering an authentic cooking aroma Dynarome® SR mimics animal fat release to recreate the same juicy taste and succulence in vegan products TR Moment of Truth Dynarome® TR allows tailored flavor release at elevated Heat
Slide 23: Sustainability
Sustainability New Natural and Increased Renewable Sustainable Long-lasting Renewable Ingredients Content in Our Palette Performance Discovering and developing Converting our palette by Delivering enduring sensory proprietary ingredients leveraging new biomass and performance that is better using su
Slide 24: Eco-Friendly Long-Lasting Fragrance for Laundry
Eco-Friendly Long-Lasting Fragrance for Laundry Firmenich is at the forefront of this critical effort towards protecting the planet Evolving segment opens up new technical challenges Technologies to extend perfume intensity in laundry and opportunities • Sustainable delivery systems for laundry • Pe
Slide 25: Biotech Platform Delivers Sustainable Fragrance Ingredients
Biotech Platform Delivers Sustainable Fragrance Ingredients Pioneered biotech as a capability to deliver high- performance and sustainable ingredients for F&F • Platform for discovery featuring strong toolkit in biocatalysis, precision and natural fermentation Achieved commercial success on multiple
Slide 26: Wellness
Wellness Technologies for Sugar Reduction Antibacterial Solutions for Hygiene Developing new natural sweeteners, Identifying secondary benefits of sweetness enhancers and maskers perfume ingredients for use in hygiene Emotions and Sensory Ingredients for Skin Care Providing tools linking perfume wit
Slide 27: Dreamwood Advances Our Skin Care Journey
Dreamwood™ Advances Our Skin Care Journey Skin care benefits demonstrated in clinical study RELATIVE REDNESS REDUCTION VS. TIME OF APPLICATION 5x redness reduction vs. placebo Positive effect on skin repair, reflected by a reduction in the Benefit stabilized over time Positive reduction dehydration
Slide 28: R&D Positioned as Engine of Sustained Differentiation
R&D Positioned as Engine of Sustained Differentiation Investing in capabilities to grow our business today and in the future MEET CUSTOMER & BUSINESS NEEDS ANTICIPATE FUTURE MARKET OPPORTUNITIES to Fuel Short- & Mid-term Growth to Secure Long-lasting Leadership Delivering measurable value for & with
Slide 29: Perfumery & Ingredients
Perfumery & Ingredients Ilaria Resta Firmenich HY 2022 results presentation • 29
Slide 30: Key Highlights
Key Highlights #1 #1 Best-in-Class Co-leader in in Organic Creation Perfumery & Growth vs. Top Palette Ingredients1 Peers2 Vertically Leader in Breakthrough Integrated in Renewables and R&D and Ingredients Naturals Innovation 30 (1) As per internal estimates excluding Active Beauty Ingredients. (2)
Slide 31: Major Market Trends in Perfumery
Major Market Trends in Perfumery CONSUMER TRENDS CLIENT TRENDS Naturality & Cost Sustainability Certifications Transparency Pressures Customization Enhanced Hygiene & Rise of Leveraging Benefits Efficacy E-Marketplaces Digital & AI Beyond Sensory Responsible Insourced & Competition from Serenity & S
Slide 32: End-to-End Approach to Unlocking Differentiation for Our Customers
End-to-End Approach to Unlocking Differentiation for Our Customers DEEP CONSUMER HIGH-PERFORMANCE BEST-IN-CLASS PERFUME INSIGHTS INGREDIENTS & TECHNOLOGIES CREATION Targeted and digitally-powered Portfolio of innovative and sustainable Differentiated perfume design fueled understanding of consumer p
Slide 33: Best-in-class Creation Palette
INGREDIENTS & INNOVATION LEADERSHIP Best-in-class Creation Palette GREEN BIOTECHNOLOGY NATURALS TECHNOLOGY CHEMISTRY INNOVATION Unique & iconic portfolio Industry pioneer Global presence at source Differentiated performance • • • • Strong IP protection Investments over 20+ years Naturals center of e
Slide 34: Creation is Led by Our World-Class Perfumers
Creation is Led by Our World-Class Perfumers FINE FRAGRANCE PERFUMERS CONSUMER FRAGRANCE PERFUMERS Masters, seniors & next generation Masters, seniors & next generation ALBERTO MORILLAS NICOLAS BONNEVILLE MARTIN KOH HARESH TOTALANI YUNAN CHENG MARIE SALAMAGNE MASTER PERFUMER PRINCIPAL PERFUMER PERFU
Slide 35: We are Leading the Industry Transformation
VISION We are Leading the Industry Transformation WE ARE CREATORS OF POSITIVE FRAGRANCES THAT DELIGHT CONSUMERS WITH SUPERIOR PERFORMANCE AND FRAGRANCE SIGNATURE Positive for Positive for Positive for Our Our Our Consumers & Environment & People& Customers Communities Organization
Slide 36: We are Transforming in Key Areas
STRATEGY We are Transforming in 3 Key Areas INNOVATION SUSTAINABILITY DIGITAL Consumer-driven Innovation: Benefit-based Signatures and Active Leadership in Sustainable Fragrances End-to-End Digital & Benefit Solutions and Ingredients Data Transformation 36
Slide 37: Differentiated & Superior Innovation for Key Benefit Spaces
INNOVATION Differentiated & Superior Innovation for Key Benefit Spaces 3 INNOVATION PLATFORMS TO LEAD IN 4 CONSUMER BENEFIT DOMAINS SENSORIAL EXPERIENCES CLEAN & HYGIENE HEALTH & REASSURANCE EMOTION & WELL-BEING 37
Slide 38: Industry-Leading Ambition
SUSTAINABILITY Industry-Leading Ambition POWERED BY OUR SUSTAINABILITY PROGRAMS 99% 100% -25% Ultimately or Renewable Carbon impact of partially fragrances our perfumery biodegradable business ingredients CreateForGood™ Path2Farm™ EcoScent FirGood™ Compass™ Biotech Natural Extraction Upcycling & Gre
Slide 39: Business-Led Digitalization
DIGITAL Business-Led Digitalization: Introducing Commercial Operational Real-time customer behavior x10 Sales efficiency analytics Pioneering Dynamic Pricing Efficient Supply Chain Access to entrepreneurs, Credit card payments digital start-ups 39
Slide 40: Perfumery & Ingredients Financial Profile
Perfumery & Ingredients Financial Profile Revenue Growth on an Organic basis at Constant Currency (%) 0.8%1 4.4%1 11.7%3 Perfumery & Ingredients 2,855 (FY 2021 CHFm 2,458 Revenue as % 67% 2,450 of total Group) 1,495 21.1% 21.7% 19.3% 20.6% FY 2019 FY 2020 FY 2021 H1 FY 20222 Adj. EBITDA margin Reven
Slide 41: Conclusion
Conclusion Leading palette of renewable Best-in-class creation team biodegradable and differentiated ingredients Top-tier innovation First fully-digital platform for capabilities with strong mid-to-small clients pipeline to build the future 41
Slide 42: Perfumery & Beauty Offers Further Growth Opportunities
Perfumery & Beauty Offers Further Growth Opportunities TECHNICAL & SKIN PERFORMANCE UV FILTERS AROMA BIOACTIVES INGREDIENTS INGREDIENTS Supercharge our customers' success with our combined suite of services and ingredients Global Product Customer Application & Sensory Consumer & Scientific Regulator
Slide 43: Taste & Beyond
Taste & Beyond Emmanuel Butstraen Confidential – For Internal Use Only
Slide 44: What Makes Firmenich T&B Unique?
What Makes Firmenich T&B Unique? Long-standing World-class science Leading with Creation, customer and successful, Application and intimacy growing pipeline Consumer Insight Purpose focus for Sustainability at the employees, customers, core of our business stakeholders, and planet 44
Slide 45: Accelerating the Diet Transformation
Accelerating the Diet Transformation We are helping to create healthier, great-tasting, affordable food & beverages with more natural and sustainable ingredients to enhance well-being for people & planet Transform into Natural Better Nutrition Plant-Based Revolution • INNOVATE TO OPTIMIZE NATURAL RE
Slide 46: Fast-Changing Consumer Trends
Fast-Changing Consumer Trends Positive Negative Neutral Consumers + Affordability & Natural & Food- Food Food- Local & Food security Clean Label Minus Safety Plus sustainable Flexitarianism Food & Beverage Industry Food Food Service Innovation Profitability Pressure New Channels & Supply Chain Waste
Slide 47: Focused Strategy Accelerating Diet Transformation
Focused Strategy Accelerating Diet Transformation… Flavor Beyond Foundations Flavor Priorities Deepen Local Presence Sugar Reduction Accelerate Plant-Based Innovation Transform Nutrition Into Naturals (Emerging) Enablers Service & Expand Digitalization Competitiveness Capabilities 47 …to Deliver Sus
Slide 48: Deploying Innovation with Superior Science Capabilities
Deploying Innovation with Superior Science Capabilities WORLD-CLASS SCIENCE FOCUS ENGAGEMENT Unique Research capabilities Focused Innovation programs Fast deployment Receptor discovery 7 Priority Programs including Plant-based, Immediate customer connectivity Materials science Sugar reductio
Slide 49: Leading a Major Digital Transformation
Leading a Major Digital Transformation E-Creation 3.0 • From augmented creation to informed creation DIGITALIZED • AI & Automation of new creation tools BRIEF TO ADOPTION E-Application 1.0 • AI & Automation of new application tools1 • Lab automation: formulating, processing, sampling & pilot samplin
Slide 50: Taste & Beyond Financial Profile
Taste & Beyond Financial Profile Revenue Growth on an Organic basis at 1.5%1 5.2%1 13.4%3 Constant Currency (%) Taste & 33% Beyond CHFm 1,415 1,428 1,417 (FY 21 Revenue as % of Total Group) 746 22.9% 20.5% 22.1% 18.8% FY 2019 FY 2020 FY 2021 H1 FY 20222 Adj. EBITDA margin Revenue 50 Source: Firmenic
Slide 51: Conclusion
Conclusion Clear strategy and growth Best-in-class team leading momentum Taste & Beyond transformation Leadership in Innovation & We are ready for a new Digitalization Journey into Beyond 51
Slide 52: Firmenich Q&A
Firmenich Q&A
Slide 53: DSM
02 DSM
Slide 54: Transformation into a Leader in Health, Nutrition & Bioscience
Transformation into a Leader in Health, Nutrition & Bioscience More than 150 years of Two decades of Unique business model and Serving highly attractive markets deep scientific heritage successful transformation rich innovation pipeline for people and the planet 1 1902: Royal DSM Health, Pioneer in
Slide 55: Delivering Strong Financial Returns and a Positive ESG Impact
Delivering Strong Financial Returns and a Positive ESG Impact Global food systems face huge DSM is uniquely positioned and This creates purpose-led Building a company that delivers environmental and societal has the capabilities positive impact for people and long-term, performance-driven challenges
Slide 56: Three Business Groups with Clear End-Market Orientation
Three Business Groups with Clear End-Market Orientation Animal Nutrition Health, Nutrition Food & Beverage & Health & Care Healthy diets for all through Radically more sustainable Keeping the world’s growing nutritious, delicious and animal farming population healthy sustainable solutions €3.3bn1 €2
Slide 57: Animal Nutrition & Health
Animal Nutrition & Health Ivo Lansbergen DSM President of Animal Nutrition & Health HEALTH ∙ NUTRITION ∙ BIOSCIENCE
Slide 58: Global Population Growth & Need for More Sustainable Animal Farming Drive Sales Growth
Global Population Growth & Need for More Sustainable Animal Farming Drive Sales Growth Sales1 €3.3bn Poultry Swine Ruminants Aqua 46% 22% 23% 9% DSM holding a strong market position in attractive end markets • ~30% market share in our markets • Unique global premix network, strong US$ 500bn represen
Slide 59: Most Complete Ingredients Portfolio
Most Complete Ingredients Portfolio, Combined through a “Global Products, Local Solutions” Approach Enriched with Precision Services Precision Region N-AM L-AM EMEA Asia Omegas MTX Veramaris® detoxifiers Eubiotics Vitamins Probiotics Market Segments Natural Minerals Preservatives Colorants Bovaer™ C
Slide 60: Our Mission is to Lead a Robust & Achievable Transformation
Our Mission is to Lead a Robust & Achievable Transformation Worldwide in Sustainable Animal Protein Production, by Focusing on 6 Drivers 60
Slide 61: Enabling Customers to Significantly Reduce Scope 3 Emissions
Enabling Customers to Significantly Reduce Scope 3 Emissions and Achieve their SBTI Targets, if Best Practices and Science is Applied This can be achieved through Cattle Cattle -37% applying the right Feed ingredients: Pigs Pigs -24% Poultry Poultry -17% Buffalo Buffalo -30% Small Small ruminants ru
Slide 62: DSM's Rich Innovation Pipeline
DSM’s Rich Innovation Pipeline Contributing to Sustainable Mid Single-digit Organic Growth CAGR 62
Slide 63: 63
63
Slide 64: We Make It Possible
If not us, who? If not now, when? WE MAKE IT POSSIBLE
Slide 65: Health, Nutrition & Care
Health, Nutrition & Care Philip Eykerman DSM President of Health, Nutrition & Care HEALTH ∙ NUTRITION ∙ BIOSCIENCE
Slide 66: A €2.6bn Leader in Health, Nutrition & Care
A €2.6bn1 Leader in Health, Nutrition & Care Serving consumers globally across 10 segments 1 1 1 1 1 20% 35% 15% 1 2 3 20% 5% 5% 66 (1) 2021 Sales. Will move to Perfumery & Beauty in DSM-Firmenich
Slide 67: We are the End-to-End Partner for our Customers
We are the end-to-end Partner for our Customers Across Key Consumer Insights-led Health Benefits and Technical Solutions Delivering Health Benefits and Solutions – Health Benefits addressing consumer needs Solutions for our customers - superior applicability & technical properties and all the
Slide 68: HNC Focuses on Key Strategic Priorities
HNC Focuses on 6 Key Strategic Priorities, which will be Strengthened by Firmenich’s Capabilities Growing along the value chain & regional penetration Delivering personalized nutrition Leading on premix Scaling MRS profitably Commercializing innovations & Serving consumers directly Accelerating grow
Slide 69: Firmenich will Strengthen DSM's Naturals Portfolio
Firmenich will Strengthen DSM’s Naturals Portfolio and Localized/ Customized Solutions Offering Dietary supplements/ personalized nutrition: Develop “next gen” supplements leveraging taste and application expertise (e.g., gummies) and further expanding the product portfolio with naturals Pharma:
Slide 70: HNC's Growth is Fueled by a Rich Product Innovation Pipeline
HNC’s Growth is Fueled by a Rich Product Innovation Pipeline, to be Further Complemented with Naturals Leveraging Firmenich’s Expertise Next-generation vitamins & minerals – Good, Better, Best 70
Slide 71: Synergies Driving Growth: Developing Next-Generation Supplements
Synergies Driving Growth: Developing Next-Generation Supplements Flavored multi-vitamin and eye-health gummies Mix of vitamins, minerals Optimal flavor, taste and Consumer insights on and lutein with known texture key health benefits health benefits and flavors Premix and Market- Ready Solution (MRS
Slide 72: Developing Next-Generation Supplements (Hologram Example)
Developing Next-Generation Supplements (Hologram Example) Premium, health benefit-focused, beauty-inspired menopause gummies Mix of vitamins, saffron, genistein, lutein and zeaxanthin with known Optimal flavor and taste health and beauty benefits Consumer insights on key health benefits and flavors
Slide 73: Developing Market-Ready Medical Nutrition Solutions
Developing Market-Ready Medical Nutrition Solutions Disease-specific composition products for cancer patients and cancer survivors Products around the patient concept allowing integration of the nutrition for disease Consumer insights and into everyday routine of chronic patients for doctor insights
Slide 74: Developing Unique and Novel Medical Nutrition Products
Developing Unique and Novel Medical Nutrition Products Novel medical nutrition product for children with Crohn’s Disease/ Inflammatory Bowel Disease Clinically proven composition with Patient and doctor insights colon delivery B2, HMO mix and on health benefits and vitamin D to improve disease onset
Slide 75: Food & Beverage
Food & Beverage Patrick Niels DSM President of Food & Beverage HEALTH ∙ NUTRITION ∙ BIOSCIENCE
Slide 76: Commitment to Address Food Systems' Biggest Challenges
We Have Clear Commitment to Address Food Systems’ Biggest Challenges Consumers are looking for food & beverages that are nutritious, delicious and sustainable Delicious and appealing Nutritious and healthy Sustainable Consumer preference starts with Dietary choices impact Sufficient affordable, appe
Slide 77: DSM Brings Together Taste, Texture and Health
DSM Brings Together Taste, Texture and Health in Sustainable Solutions for our Customers Supported by nutritional expertise Integrated solutions to address taste, texture and health e.g., the digital FortifullTM Nutrition e.g., in plant based foods Guide for plant based foods 77
Slide 78: DSM Food & Beverage
DSM Food & Beverage Comprehensive portfolio of ingredients serving diverse segments of an attractive and growing market Sales1 Baking, Plant-based, €1.3bn Dairy confectionery Savory Beverages sugar reduction Pet 30% 15% 20% 20% 5% 10% … and holds a strong DSM offers a broad range of ingredients … …
Slide 79: Broad Portfolio of Products, DSM Delivers Value Added Solutions
Broad Portfolio of Products, DSM Delivers Value Added Solutions Process and Taste Texture Health Preservation • Cultures • Bio-gums • Carotenoids • Antioxidants • Enzymes • Cultures • Enzymes • Bioprotection • Sweeteners • Enzymes • Nutraceuticals • Coatings • Yeast extracts • Pectin • Lipids • Cult
Slide 80: Together, DSM-Firmenich have Extensive Capabilities
Together, DSM-Firmenich have Extensive Capabilities in Taste, Nutrition and Functionality – Key Levers for Value Creation Broader customer reach Concept selling Enhanced innovation Extensive, complementary toolbox Great people Address the food systems’ biggest challenges 80
Slide 81: Significant Innovation Opportunities will Drive Additional Sales
Significant Innovation Opportunities will Drive Additional Sales Bring together taste, texture and nutrition Enhanced scale across combined Functional portfolios to provide well-being attributes to savory portfolio and drive new Savory Nutrition Food & Beverage consumers (e.g., functional product cr
Slide 82: Dairy: Combined Unique Portfolio
Dairy: Combined Unique Portfolio to Enhance Dairy System with Premium Taste Profiles, Texture and Health Attributes Example: flavored fortified and probiotic milk drink – that “support immunity” Deep consumer insights Fermentation-derived base enhanced with premium taste Health claims “support immun
Slide 83: Plant-based Foods: Strong Portfolio
Plant-based Foods: Strong Portfolio of Flavors, Taste Modulation, Texture, Enzymes, Cultures, Micronutrients, and Differentiated Protein Sources Example: tasty, nutritious and sustainable plant-based burger Enhanced mouthfeel (Base) taste and juiciness Yeast extracts and Consumer insights Hydrocollo
Slide 84: DSM-Firmenich
03 DSM-Firmenich 84
Slide 85: Leadership Across Nutrition, Beauty and Well-Being
Leadership Across Nutrition, Beauty and Well-Being An €11bn+ revenue company supported by a superior foundation in science and technology and a world- class vertically integrated supply chain DSM1 Firmenich2 Innovator in Health, Nutrition & Bioscience Creators in Taste and Perfume €7.3bn 6% 19% €4.2
Slide 86: Creation and Innovation Partner with Market-Leading Capabilities
Creation and Innovation Partner with Market-Leading Capabilities to Better Serve Our Customers Food & Beverage / Health, Nutrition & Animal Nutrition & Perfumery & Beauty Taste & Beyond Care Health
Slide 87: The Leading Creation and Innovation Partner in Nutrition, Beauty and Well-Being
The Leading Creation and Innovation Partner in Nutrition, Beauty and Well-Being Health, Nutrition Animal Four high-performing businesses uniquely & Care Nutrition positioned to address consumer trends 19% & Health 29% Food & Unparalleled (bio)science and technology Beverage / platforms Taste & Perfu
Slide 88: Creation of DSM-Firmenich will Accelerate Strategic Delivery
Creation of DSM-Firmenich will Accelerate Strategic Delivery and Open New Innovation Opportunities Strengthened value proposition Outstanding health and nutrition to help customers win Artisan perfumers and flavorists driving true portfolio capabilities and expertise differentiation informed by loca
Slide 89: Four High-Performing and Complementary Businesses
Four High-Performing and Complementary Businesses Food & Beverage / Perfumery & Beauty Health, Nutrition & Care Animal Nutrition & Health Taste & Beyond Creators of positive perfumes and Provide delicious, nutritious and sustainable Keeping the world’s growing Transforming animal farming to become b
Slide 90: Consumers are Increasingly Focused on Sustainability, Health & Well-Being
Consumers are Increasingly Focused on Sustainability, Health & Well-Being Consumer associations for products Consumer associations for products …used in perfumery & beauty1 …used as food, beverage, nutrition2 vegetarian free from safe minimal comfort natural 100% ethical & artificial quality natural
Slide 91: Uniquely Positioned to Anticipate Evolving Consumer Needs
Uniquely Positioned to Anticipate and to Address Evolving Consumer Needs Four customer facing businesses Evolving consumer needs with market-leadership positions Fuelled by superior foundation Great product experience Perfumery & Beauty No compromise on: World-class science & technology platform C
Slide 92: Science Leader with Complementary Capabilities
Science Leader with Complementary Capabilities Proven Track Record and Established Broadest Science Foundation Continued Commitment to Innovate Innovation Pipeline Data Science & Naturals Microbiology Differentiated Creation Sustainability Wellness €700m+ AI Extraction & microbiome annual DSM-Firmen
Slide 93: Perfumers and Flavorists
Perfumers and Flavorists Team of artisans: multi- award-winning master perfumers and Building on breakthrough technologies to drive true principal flavorists with an industry-leading ingredient palette differentiation as a partner with customers Supported by strong investment in internal resea
Slide 94: Locally Differentiating Co-Creation and Innovation in All Key Markets
Locally Differentiating Co-Creation and Innovation in All Key Markets Balanced exposure to growth markets North America 23% Europe Villa Botanica fosters 33% inspiration and creativity in South China End-to-end customer direct interaction with co-creation center natural ingredients and newest innova
Slide 95: Pioneering Digitally Powered Business Models
Pioneering Digitally Powered Business Models Exciting suite of digitally enabled new business models enabling leading participation in the formation of new markets around precision and personalization Digital Commerce Human Personalized Nutrition Winner of the Digital Innovation of the year 2021 for
Slide 96: A Global Vertically Integrated Supply Chain
A Global Vertically Integrated Supply Chain Operating at the highest safety and quality standards ensuring supply continuity, resilience and deepening trust with our customers DSM-Firmenich1 40 EMEA Creation centers North America Creation 19 Creation 6 Application 34 Premix 21 78 Application 9 Premi
Slide 97: A Global Company Where Our People will Thrive
A Global Company Where Our People will Thrive 28,000 loyal, passionate, Working in a new company talented & diverse people that will… … with a shared passion for … have a culture that puts innovation and creation to people’s safety, health and well- deliver value for customers being first … and with
Slide 98: Continued Purpose-Led Commitment to People and Planet
Continued Purpose-Led Commitment to People and Planet Sustainability as a core value embedded across both organizations' strategies Global recognition World-leading partnerships Focused on generating positive and measurable impact for people, climate and nature 98
Slide 99: DSM-Firmenich Governance & Financial Highlights
04 DSM-Firmenich Governance & Financial Highlights
Slide 100: Highly Experienced and Well Proven Leadership
Highly Experienced and Well Proven Leadership Board of Directors1 Chairman Vice Chairman Non-Executive Directors Thomas Leysen Current DSM Chair Patrick Firmenich Current Firmenich Chair 9 Independent members2 3 Firmenich representatives Executive Committee Co-CEO including CFO responsibilities Co-C
Slide 101: Merger of Equals (1/2)
Merger of Equals (1/2) Corporate Name DSM-Firmenich Merger of equals between DSM and Firmenich through a new company, DSM-Firmenich, domiciled in Switzerland Transaction Public offer for DSM shares in exchange for DSM-Firmenich shares Structure Contribution of Firmenich shares in exchange fo
Slide 102: Merger of Equals (2/2)
Merger of Equals (2/2) 12 non-executive directors in Board of Directors (under Swiss governance) comprised of: o 3 nominees from the Firmenich shareholders o 7 independent directors from DSM’s Supervisory Board Board o 1 independent director from the existing Firmenich Board o 1 new independent me
Slide 103: Synergies Driving Substantial Value Creation with Low Integration Risk
Synergies Driving Substantial Value Creation with Low Integration Risk Substantial Value Creation Revenue Synergy Breakdown ~€500m Revenue Synergies Food & Beverage / Taste & 60% ~50 – 60% Beyond Cost Synergies ~40 – 50% 25% Health, Nutrition & Care 15% Perfumery & Beauty Total run-rate ~€350m Adj.
Slide 104: Significant Innovation Opportunities Driving Revenue Synergies
Significant Innovation Opportunities Driving Revenue Synergies Food & Beverage / Taste & Beyond: Innovation Accelerators Functional Nutrition: Bring together taste, texture and nutrition portfolios to provide well-being attributes to Food & Beverage consumers (e.g., functional beverage, fortified
Slide 105: Strong Financial Profile Enhanced by Material Synergies Over Time
Strong Financial Profile Enhanced by Material Synergies Over Time Indicative pro-forma1 DSM2 Firmenich3 DSM- Synergies4 FY 2021 CY 2021 Firmenich5 Sales €7.3bn €4.2bn ~€0.5bn €11.9bn Adj. EBITDA €1.4bn €0.8bn €0.35bn €2.6bn Adj. EBIT €0.8bn €0.5bn FCF6 €0.8bn €0.6bn Effective Tax Rate 19% 18-19.5% (
Slide 106: Robust Financial Profile for Superior Shareholder Value Creation
Robust Financial Profile for Superior Shareholder Value Creation Mid-single-digit organic sales growth to gradually accelerate to a 5-7% range, supported by revenue Sales Mid-Term synergies and innovation Ambition1 20%+ Adj. EBITDA margins at the outset, with a medium-term outlook of 22-23%, sup
Slide 107: Creation and Innovation Partner with Market-Leading Capabilities
Creation and Innovation Partner with Market-Leading Capabilities to Better Serve Our Customers Food & Beverage / Health, Nutrition & Animal Nutrition & Perfumery & Beauty Taste & Beyond Care Health
Slide 108: <= O Lr) ©
<= 5 O Lr) ©