Dsm-firmenich Ag · EURONEXT:DSFIR

Dsm-firmenich — Royal DSM — Investor Day (June 2018)

13 slides from Dsm-firmenich's investor day presentation, Jun 20, 2018

  1. Slide 1: DSM Capital Markets Day 2018 – Nutrition

    DSM Capital Markets Day 2018 Nutrition Chris Goppelsroeder | President & CEO DSM Nutritional Products ROYAL DSM CAPITAL MARKETS DAY | LONDON (UK) 20 JUNE 2018

  2. 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 rea

  3. Slide 3: How did we enter the 2016-18 strategic period?

    How did we enter the 2016-18 strategic period? ✓ Further enhanced our Nutrition portfolio through 5 major acquisitions ✓ Started a new comprehensive Nutrition Improvement Program accelerating growth & providing a step-up in EBITDA ✓ Leveraging the power of Nutrition’s unique business model Page 2

  4. Slide 4: Outperforming our Strategy 2018 targets on organic sales and Adj. EBITDA growth

    Outperforming our Strategy 2018 targets on organic sales and Adj. EBITDA growth from underlying business Strategy 2018 Targets 1000% (2016-2018) ~7% Temporary vitamin 800% CAGR1 benefit Nutrition 2016-18 600% Organic Sales Growth per year Sales (€bn) Underlying 400% business +5% 200% 5.0 5.2 5.6 0%

  5. Slide 5: Outperforming ROCE target, but high OWC reduced EBITDA-to-cash conversion

    Outperforming ROCE target, but high OWC (inventory) reduced EBITDA-to- cash conversion Outperforming ROCE targets Slipping EBITDA-to-cash conversion2 (high-double digit basis points annual ROCE growth) Temporary vitamin 18% benefit 100% 100% 16% ~180 90% Avg. bps 80% 14% 2016-182 Underlying 70% 12%

  6. Slide 6: Both businesses accelerated their underlying organic growth significantly

    Both businesses accelerated their underlying organic growth significantly, but through different levers Human Nutrition & Health Animal Nutrition & Health 2010-2015 2016-2018 2010-2015 2016-2018 Organic growth ~5% ~8% 1 1 (CAGR) ~1% ~5% M&S Excellence + Invest in B2C Biz-model leverage + Auctus Stra

  7. Slide 7: Overall Gross Margin relies on many products and tends to be more resilient

    Our overall Gross Margin today relies on many products and therefore tends to be more resilient – Temporary vitamin benefit 2018 separated! GPx distribution by product1 Vitamins Temporary vitamin A&E benefit 100% Other Underlying business Adj. EBITDA %: ~19% Vitamin E <10%2 1. Excluding mixing margi

  8. Slide 8: The comprehensive Nutrition Improvement Program did mostly work

    The comprehensive Nutrition Improvement Program did mostly work … ✓ ~ ✓ ✓ ✓ Strategy ~5% organic 1% OWC/Sales ~€300m capex €130-150m Major impact 2018 growth per year reduction/yr per year savings beyond 2018 Integrated Product Portfolio Operations Innovation Animal Nutrition Business Planning More

  9. Slide 9: … and will be followed up by an ambitious phase-2

    … and will be followed up by an ambitious phase-2 Strategy ~5% organic Operating Cash Flow growth > EBITDA Economies of scale Major impact 2021 growth per year growth Animal Integrated business Product Operations Innovation Nutrition planning portfolio More focused portfolio … End-to-end customer ex

  10. Slide 10: Five key macro-trends - Two have a disruptive impact on strategy

    Five key macro-trends - Two have a disruptive impact on strategy Animal Nutrition & Health Human Nutrition & Health Growth & Health & Productivity Wellness ▪ Antibiotic resistance Food & Beverage ▪ Environmental footprint ▪ Focus on M&S More integrated ▪ Overfishing ▪ “Less of …” application-based s

  11. Slide 11: Distinct organic & inorganic growth drivers per business for 2019-2021

    Distinct organic & inorganic growth drivers per business for 2019 - 2021 Human Nutrition & Health Animal Nutrition & Health M&S Excellence Part 2 B2B B2C Ingredients Applications Food & Build out Food Ingredient Beverage Solutions business Strategic Early life & Medical Broaden Specialty Nutrition G

  12. Slide 12: Ambitions for Nutrition underpinning DSM's 2021 Targets

    Ambitions for Nutrition underpinning DSM’s 2021 Targets Organic Sales growth ~5% Adjusted EBITDA growth High single-digit % Adjusted EBITDA margin >20% Page 11

  13. Slide 13: Slide 13

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