Dsm-firmenich Ag · EURONEXT:DSFIR
Dsm-firmenich — FY 2024 Earnings Presentation
38 slides from Dsm-firmenich's earnings presentation, Feb 13, 2025
Slide 1: Presentation to Investors FY 2024 results
Presentation to Investors FY 2024 results 13 February 2025
Slide 2: Our journey towards bringing progress to life
Our journey towards bringing progress to life Accelerate Tune Focus Merge Prioritization of 1. Grow what we have Dream Full focus on high growth, high 2. Anchor what we do margin segments 3. Deliver on our 2 iconic companies building a leading promises Bringing progress coming together consumer with
Slide 3: Delivered on our 2024 commitments
Strategic plan Delivered on our 2024 commitments Established a leading, innovation-focused consumer company in nutrition, health & beauty Significant improvement of financial results: • strong 6% organic sales growth • 19% step-up in Adj. EBITDA, 210bps increase in Adj. EBITDA margin • 12% cash to s
Slide 4: Sale of stake in Feed Enzymes Alliance
Sale of stake in Feed Enzymes Alliance Sale Announcement • Sale of ANH’s stake in Feed Enzymes Alliance to Novonesis for €1.5bn • Represents around €300m 2024 sales • Long-term relationship continued for re-sale of feed enzymes through ANH’s premix network Status ANH separation • ANH transaction pro
Slide 5: Continuing our journey: 2025 plan
Continuing our journey: 2025 plan • Acceleration of innovation and creation-led organic sales growth • Further synergies of about €100m Adj. EBITDA • Completion of vitamin transformation program with about €100m Adj. EBITDA • Exiting Animal Nutrition & Health and finalizing tuning of our portfolio,
Slide 6: Financial Highlights
01 Financial Highlights 6
Slide 7: FY 2024 – Strong improvement of financial results
FY 2024 – Strong improvement of financial results Sales Organic Sales Growth Adj. EBITDA Adj. EBITDA margin €12,799m +6% €2,118m 16.5% +4% +11 pp +19% +210bps €1bn Share Buy Back Core EBIT Core EPS Adj. GOFCF/Sales €1,213m €3.10 12% €2.50 +43% +53% +400bps Dividend per share 7
Slide 8: FY 2024 Group financials
FY 2024 Group financials • Strong 6% organic sales growth in 2024 ✓ Very strong performance in Perfumery & FY 2024 sales development Beauty and Taste, Texture & Health €12,310m 6% €12,799m ✓ Solid performance on better business (0%) conditions in Health, Nutrition & Care through (1%) (1%) H2 2024 ✓
Slide 9: Q4 2024 Group financials
Q4 2024 Group financials • Overall: strong 7% organic sales growth in Q4 2024 ✓ Good performance in Perfumery & Beauty and Taste, Texture & Health in a seasonally lower Q4 2024 sales development quarter ✓ Better performance in Health, Nutrition & Care 4% €3,257m €3,112m 3% on improved business condi
Slide 10: FY 2024 Perfumery & Beauty
FY 2024 Perfumery & Beauty • Very strong performance with 9% volume growth, driven by both global and regional accounts. The (2%) pricing reflected lower input costs FY 2024 sales development ✓ Perfumery had an excellent year with strong organic sales growth in both Fine Fragrances 9% €3,964m and Co
Slide 11: Q4 2024 Perfumery & Beauty
Q4 2024 Perfumery & Beauty • Perfumery & Beauty delivered good performance Q4 2024 sales development with 5% volume growth 5% 0% €966m €914m 1% ✓ Perfumery delivered a strong volume growth on strong demand for Fine Fragrances and good demand for Consumer Fragrances ✓ Beauty & Care had a soft quarter
Slide 12: Perfumery & Beauty Key innovations
Key innovations Perfumery & Beauty Perfumery Ingredients Beauty & Care Strong innovation portfolio, rapidly adopted in Ingredients expanded its manufacturing Continued to emphasize suncare with the customer briefs and expanded with new footprint, with strong focus on Fragrance launch of Sunsense3, a
Slide 13: FY 2024 Taste, Texture & Health
FY 2024 Taste, Texture & Health • Very strong performance with 9% volume growth, equally contributed by Taste and Ingredients Solutions FY 2024 sales development • Strong demand was driven by regional and local accounts, partly also bolstered by catch-up from 9% €3,245m last year's destocking €3,038
Slide 14: Q4 2024 Taste, Texture & Health
Q4 2024 Taste, Texture & Health Q4 2024 sales development • Business momentum remained strong throughout 4% 0% €790m €768m the quarter, which is seasonally a low quarter (0%) (1%) • The reported 4% volume growth in Q4 followed an exceptionally strong Q3 with 13% volume growth Actual FX Volumes Price
Slide 15: Taste, Texture & Health Key innovations
Key innovations Taste, Texture & Health Plant-based solutions Savory Dairy TTH developed a plant-based solution In Savory, TTH developed a plant- In Dairy, a renowned US dairy company for oat and soy drinks, combining a based tuna solution using expertise in launched new fruit-flavored low-sugar gel
Slide 16: FY 2024 Health, Nutrition & Care
FY 2024 Health, Nutrition & Care FY 2024 sales development • HNC delivered 2% volume growth €2,270m 2% €2,214m • Medical Nutrition, i-Health, and Biomedical Solutions (0%) (1%) (3%) performed well • Dietary Supplements and Early Life Nutrition gradually improved, driving 5% volume growth for Pro for
Slide 17: Q4 2024 Health, Nutrition & Care
Q4 2024 Health, Nutrition & Care Q4 2024 sales development • HNC had a good quarter with 5% volume growth 5% 0% €581m €562m • I-Health and Biomedical Solutions performed well, (0%) (8%) with further improvement in demand for Dietary Supplements, particularly algal lipid solutions, and Actual FX Volu
Slide 18: Health, Nutrition & Care Key innovations
Key innovations Health, Nutrition & Care Unlocking Health from the Gut Increasing Health Expectancy Supporting the Big Shift to Algal HNC launched Humiome® Post LB to improve HNC aims to reduce the 10-year gap between life’s®OMEGA O3020, the first algal-based gut wellbeing and Humiome® B2 with lifes
Slide 19: FY 2024 Animal Nutrition & Health
FY 2024 Animal Nutrition & Health • Strongly improved performance with 5% OSG • Performance Solutions delivered strong results, particularly in mycotoxin risk management now FY 2024 sales development offered together with precision services through the 2% €3,324m premix network €3,227m 3% • Bovaer a
Slide 20: Q4 2024 Animal Nutrition & Health
Q4 2024 Animal Nutrition & Health • Animal Nutrition & Health delivered a strongly Q4 2024 sales development improved performance, led by prices up 15%, owing to a further normalization of the 15% €930m €833m 1% vitamin prices and the temporary vitamin (4%) price effect Actual FX Volumes Prices Actu
Slide 21: Animal Nutrition & Health Key innovations
Key innovations Animal Nutrition & Health Feed enzymes Precision service On track with Bovaer® The feed enzymes HiPhorius and Verax DBS is a newly developed Bovaer® has made strong progress, ProAct360 help increase efficiency and commercially available precision both commercially and with the lower
Slide 22: All financial KPI's moved in right direction
All financial KPI’s moved in right direction Pro forma Commentary in € millions FY 2024 FY 2023¹ % Change Net sales 12,799 12,310 +4% • Core Tax rate: 23% Adj. EBITDA 2,118 1,777 +19% • Core net profit up 53% to €849m Adj. EBITDA margin (%) 16.5 14.4 . • Core net EPS up 53% to €3.10 Core adj. EBIT 1
Slide 23: Continued commitment to progress on our cash ambitions
Continued commitment to progress on our cash ambitions Pro forma Commentary in € millions FY 2024 FY 2023¹ • The adjusted gross operating free Adj. gross operating free cash flow 1,552 999 cash flow was up €553 million Sales to cash conversion % 12.1 8.1 versus prior year, representing a . cash conv
Slide 24: Outlook for FY 2025
Outlook for FY 2025 For the group, 2025 ‘housekeeping’ we estimate a full year Adjusted EBITDA of • D&A – around €225m/quarter • PPA adjustments - around at least €2.4 billion, €290m/year • Core Finex - around €140m/year which includes at least €100 million contribution from the temporary vitamin pr
Slide 25: Strategy
O2 Strategy dsm-firmenich ese
Slide 26: Our journey towards bringing progress to life
Our journey towards bringing progress to life Accelerate Tune Focus Merge Prioritization of 1. Grow what we have Dream Full focus on high growth, high 2. Anchor what we do margin segments 3. Deliver on our 2 iconic companies building a leading promises Bringing progress coming together consumer with
Slide 27: Cost synergy delivery with target delivery of €175+ million
Cost synergy delivery with target delivery of €175+ million Cumulative cost Cost synergy implementation synergies, € million ahead of planning Direct Indirect G&A 175+ Examples include G&A: remove role duplications, leverage GES Remove management roles duplication, leverage Global Enterprise Service
Slide 28: Strong progress on revenue synergy with customers
Strong progress on revenue synergy with customers TTH HNC P&B Strong pipeline of … translates into confidence to revenue synergies… reach targets according to plan HNC Revenue growth synergies, € m P&B TTH 500 GROUP Pipeline of revenue synergies, € m 350+ 300+ 200 175+ 130 75 25 Q2’23 Q4’23 Q4’24 20
Slide 29: Vitamin Transformation with €200m profit improvement, well under way
Vitamin Transformation with €200m profit improvement, well under way Cumulative profit improvement, € million Optimization Streamlined Improved cash 200 of site network organization management Vitamin B6 plan More focused and agile Inventories reduced Xinghuo closed organization model by ~€100m thro
Slide 30: ANH transaction – Carve out completed
ANH transaction – Carve out completed Transaction in the course of 2025 With continued focus of ANH team on delivering strong results 1 January 2025 2024 Feb • Transaction expected in the course of 2025 , subject to 11 February 2025 Announcement of Preparation Phase customary conditions and approval
Slide 31: Well-progressed in tuning of our portfolio
Well-progressed in tuning of our portfolio with the sale of marine lipids, yeast extracts, and the divestment of our minority stake in Robertet Non-differentiated Aroma Agro Yeast Marine Minority stake Vitamins Ingredients Ingredients Extracts Lipids Robertet >€100m ~€170m ~€40m ~€120m ~€170m Total
Slide 32: Established a leading, innovation-focused consumer company in nutrition, health & beauty
Established a leading, innovation-focused consumer company in nutrition, health & beauty consisting of 3 complementary Business Units dsm-firmenich, building a company with over €10 bn sales We are a Category of One 32
Slide 33: Sustainability as business driver and core responsibility
Sustainability as business driver and core responsibility Partnerships with People. Planet. Broad contribution to SDGs Progress. People Planet Together with customers & partners 33
Slide 34: Stepping-up in People & Planet
Stepping-up in People & Planet Planet GHG reduction GHG reduction Purchased electricity Scope 1 & 2 Scope 3 from renewable sources 28% (2024) 19% (2024) 95% Target: 42% CO2e reduction by 2030 versus 2021 Target: 25% CO2e reduction by 2030 versus 2021 Target: 100% by 2025, maintain that level through
Slide 35: ESG Expert Investor Event 2025
ESG Expert Investor Event 2025 Kaiseraugst (CH), March 25, 2025 Making a unique contribution to the world by combining the essential, the desirable, and the sustainable.
Slide 36: Where are we on our journey?
Where are we on our journey? 1. Dream / merger 7. Significant improvement of financial results Bring Essential, Desirable & Sustainable together • Strong 6% organic sales growth • 19% step-up in Adj. EBITDA, 210bps increase in Adj. EBITDA margin • 12% cash to sales conversion 2. Merger execution • O
Slide 37: Forward-looking statements
This presentation contains forward-looking statements with respect to dsm-firmenich’s future performance and position. Such statements are based on current expectations, estimates and projections of dsm-firmenich and information currently available to the company. dsm-firmenich cautions readers that
Slide 38: We bring progress to life
We bring progress to life © 2025 dsm-firmenich group.