Dsm-firmenich Ag · EURONEXT:DSFIR
Dsm-firmenich — Royal DSM — Q1 2015 Earnings Presentation
27 slides from Dsm-firmenich's earnings presentation, Apr 29, 2015
Slide 1: Presentation to Investors Q1 2015 Results
Life Sciences and Materials Sciences Presentation to Investors Q1 2015 Results, 29 April 2015 Page
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 Q1 2015
Highlights Q1 2015 • Sales of €1,886 million, up 11%, including 2% organic sales growth • EBITDA up 4% to €248 million • Nutrition delivered good organic growth of 4%, driven by volumes in animal nutrition • Performance Materials continued to improve EBITDA through higher volumes and margins • Cash
Slide 4: Quote from Feike Sijbesma
Quote from Feike Sijbesma “DSM delivered higher results in Q1 2015 compared to prior year, driven by higher volumes in both Nutrition and Performance Materials. Nutrition delivered mixed results with good volume growth in animal nutrition, partly offset by low prices in vitamin E and weak performanc
Slide 5: Results Q1-2015 Key figures
Results Q1-2015 Key figures (€ million) Q1-2015 Q1-2014 % Continuing operations before exceptional items: Net Sales 1,886 1,692 11% EBITDA 248 239 4% EPS (€) 0.39 0.52 -26% Core EPS (€)* 0.51 0.61 -17% Total DSM before exceptional items (incl. discontinued): Net Sales 2,392 2,298 4% EBITDA 286 270 6
Slide 6: Net sales growth Q1-2015 versus Q1-2014
Net sales growth Q1-2015 versus Q1-2014 Price/ (€ million) Q1-2015 Q1-2014 Diff. Volume FX Other Mix Nutrition 1,199 1,047 15% 3% 1% 11% 0% Performance Materials 632 589 7% 3% -4% 8% 0% Innovation Center 36 34 6% -12% 0% 18% 0% Corporate Activities 19 22 Continuing operations* 1,886 1,692 11% 3% -1%
Slide 7: EBITDA – development
EBITDA – development EBITDA (€ million) Q1-2015 Q1-2014 % Nutrition 195 203 -4% Performance Materials 86 71 21% Innovation Center -5 -6 Corporate Activities -28 -29 Continuing Operations* 248 239 4% * Continuing operations (excluding discontinued activities) Page 6
Slide 8: Nutrition
Nutrition (€ million) Q1-2015 Q1-2014 % Net sales 1,199 1,047 15% Volume 3% Price/Mix 1% FX 11% Other 0% EBITDA 195 203 -4% EBITDA margin 16.3% 19.4% EBIT 129 143 -10% Capital employed 5,509 5,034* * Year-end 2014 • Sales in the first quarter increased by 15% compared to Q1 2014. Organic sales growt
Slide 9: Nutrition: quarterly sales evolution
Nutrition: quarterly sales evolution Reported sales in € million 600 500 400 300 200 Q1'13 Q3'13 Q1'14 Q3'14 Q1'15 Animal Nutrition Human Nutrition • The reported organic growth rates in Q1 2015 reflect the business evolution during 2014: Q1’14 was weakest quarter for animal nutrition (ANH) since th
Slide 10: Animal Nutrition & Health
Animal Nutrition & Health* (€ million) Q1-2015 Q1-2014 % Net sales 574 467 23% Organic growth 14% Volume 14% Price/Mix 0% FX 9% • Animal Nutrition and Health net sales were €574 million in Q1, a 23% increase versus the €467 million in Q1 2014. Organic sales growth in Q1 was 14%, entirely driven by h
Slide 11: Significant impact from lower Vitamin E prices
Significant impact from lower Vitamin E prices € 15 Vitamin E 50% spot price per kg (source: feedinfo) € 10 €5 €0 • Spot prices seem to have bottomed out in Q1 2015 • Thanks to the full integration of our vitamin production, DSM continues to be a low cost supplier vs our Chinese competitors • Attrac
Slide 12: Human Nutrition & Health
Human Nutrition & Health* (€ million) Q1-2015 Q1-2014 % Net sales 452 422 7% Organic growth -6% Volume -6% Price/Mix 0% FX 13% • Human Nutrition & Health net sales increased by 7% to €452 million versus €422 million in Q1 2014. Volumes declined 6% and prices were flat while currencies had a positive
Slide 13: Performance Materials
Performance Materials (€ million) Q1-2015 Q1-2014 % Net sales 632 589 7% Volume 3% Price/Mix -4% FX 8% Other 0% EBITDA 86 71 21% EBITDA margin 13.6% 12.1% EBIT 53 43 23% Capital employed 1,930 1,744* * Year-end 2014 • Organic sales development in Q1 amounted to -1% compared to Q1 2014 as a result of
Slide 14: Performance Materials cont.
Performance Materials cont. • EBITDA in Performance Materials for the quarter increased 21% compared to Q1 2014. Higher margins were achieved in all businesses, resulting from positive foreign exchange effects and lower raw material costs. The EBITDA-margin increased significantly to 13.6%, now in l
Slide 15: Innovation Center
Innovation Center (€ million) Q1-2015 Q1-2014 % Net sales 36 34 6% EBITDA -5 -6 EBIT -12 -14 Capital employed 572 523* * Year-end 2014 • Net sales in Q1 2015 were 6% higher compared to Q1 2014. DSM Biomedical benefited from a stronger US dollar. Volumes in DSM Biomedical were lower compared to Q1 20
Slide 16: Corporate Activities
Corporate Activities (€ million) Q1-2015 Q1-2014 Net sales 19 22 EBITDA -28 -29 EBIT -39 -39 • EBITDA in Q1 2015 was in line with the same period in previous year Page 15
Slide 17: Pharma activities and other associates
Pharma activities and other associates • Total Q1 2015 sales of joint control entities amounted to €128 million on a 100% basis (Q1 2014: €105 million) of which €117 million from DSM Sinochem Pharmaceuticals (Q1 2014: €98 million) • DPx holdings (49% DSM) realized total sales (100%) of €433 million,
Slide 18: Discontinued Operations
Discontinued Operations Per Q1 2015, Polymer Intermediates and Composite Resins are reported as Discontinued Operations (€ million) Q1-2015 Q1-2014 Net sales 506 606 EBITDA 38 31 EBIT 20 -11 • Net sales amounted to €506 million, positively impacted by currency effects of 7% and EBITDA amounted to €3
Slide 19: Partnership announced with CVC in March 2015
Partnership announced with CVC in March 2015 • Partnership (NewCo) for Caprolactam, Acrylonitrile & Composite Resins business : 65% CVC, 35% DSM • Pro-forma 2014 numbers for NewCo: Third party sales of ~€2.1 billion EBITDA of €106 million (excluding non controlling interest) ~ 1,950 Employees • The
Slide 20: Cash flow & Balance Sheet
Cash flow & Balance Sheet Cash Flow (€ million) Q1 2015 Q1 2014 Cash from operating activities, continuing operations 84 11 Cash from operating activities, total DSM 22 -37 Cash from investing activities, total DSM* -210 -75 Free cash flow from operations, total DSM -188 -112 Balance sheet (€ millio
Slide 21: Dividend proposal to AGM: stable at € 1.65
Dividend proposal to AGM: stable at € 1.65 • Dividend policy “stable and preferably rising” Dividend per ordinary share (€) • Proposal to AGM on 30 April 2015: Maintain the € 1.75 dividend of €1.65 per ordinary share – € 0.55 interim dividend (paid in August 2014) – € 1.10 final dividend (payable in
Slide 22: Business conditions and outlook
Business conditions and outlook Page 21
Slide 23: Positive currency development
Positive currency development • Indicative rules of thumb on most important sensitivities are, before hedging for €/USD and CHF/€: 1 ct USD ~€9-10m on EBITDA 1 rappen CHF ~€7-8m on EBITDA FX-Hedges in place for 2015: • Other material sensitivities include Japanese Yen, GB Pound and High Growth Econo
Slide 24: Business Conditions
Business Conditions Animal Nutrition • Good demand in animal feed markets • Vitamin E prices have bottomed out Human Nutrition • F&B markets in developed economies show some improvements, whereas LATAM and APAC impacted by economic slowdown. • US retail sales of vitamin-based dietary supplements slo
Slide 25: 2015 Outlook
2015 Outlook • Macro-economic uncertainty and low consumer confidence continue to impact market dynamics. DSM assumes low growth in Europe, continued economic resilience and growth in the US and a slowdown of growth in some of the high growth economies • Assuming current low spot prices in vitamin E
Slide 26: Annex: DSM's IR App @your service
Annex: DSM’s IR App @your service Download the mobile app at Apple’s App store and Google Play DSM Investor Relations released its Investor Relations App for iPhone, iPad and Android mobile devices. The App is available for free at Apple’s App Store for the iPhone and iPad and at Google Play for And
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