Dsm-firmenich Ag · EURONEXT:DSFIR
Dsm-firmenich — Royal DSM — Shareholder Meeting (May 2013)
33 slides from Dsm-firmenich's shareholder meeting presentation, May 3, 2013
Slide 1: DSM in motion: driving focused growth
DSM in motion: driving focused growth Annual Results 2012 Feike Sijbesma CEO / Chairman Managing Board Annual General Meeting of Shareholders Heerlen, 3 May 2013
Slide 2: Safe harbor statement
Confidential / PtI Annual Results 2012 / IR / 6 February 2013 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 info
Slide 3: Highlights of this week
Confidential / PtI Annual Results 2012 / IR / 6 February 2013 Highlights of this week • Abdication Queen Beatrix of the Kingdom of The Netherlands • Inauguration of King Willem Alexander with Queen Maxima • Royal DSM has sent its congratulations • Q1 2013 Results: Good Start to the Year in challengi
Slide 4: Overview
Confidential / PtI Annual Results 2012 / IR / 6 February 2013 Overview • Financial Results 2012 • Building a higher value business • Progress per cluster • 2013 Page 3
Slide 5: Highlights 2012
Confidential / PtI Annual Results 2012 / IR / 6 February 2013 Highlights 2012 • Solid results in challenging market conditions: – Nutrition performed well, now representing ~70% of EBITDA – 2012 results negatively impacted by caprolactam: € 300 million FY impact • Dividend increase for third consecu
Slide 6: Results FY 2012 - Key figures
Confidential / PtI Annual Results 2012 / IR / 6 February 2013 Results FY 2012 - Key figures (€ million) FY-2012 FY-2011 D% Continuing operations before exceptional items: Net Sales 9,131 9,048 +1% EBITDA 1,109 1,296 -14% EBIT 635 866 -27% EPS (€) 2.58 3.53 -27% Core EPS (€)* 2.78 3.66 -24% Total DSM
Slide 7: EBITDA FY 2012 – DSM continuing business
Confidential / PtI Annual Results 2012 / IR / 6 February 2013 EBITDA FY 2012– DSM continuing business EBITDA (€ million) 2012 2011 2010 2009* Nutrition 793 735 684 655 Pharma 39 36 61 91 Performance Materials 280 293 283 174 Polymer Intermediates 129 380 223 36 Innovation Center* -38 -57 -49 (**) Co
Slide 8: Cash flow
Confidential / PtI Annual Results 2012 / IR / 6 February 2013 Cash flow Cash Flow OWC development Q1’09 – Q4’12 FY ’12 FY ’11 (€ million) Cash from operating OWC (€m) % OWC/Sales (right axis) 730 882 activities 3000 30% Cash from investing -1,933 -741 25% activities* Free cash flow from 2000 20% -1,
Slide 9: Dividend to increase for the 3rd consecutive year
Confidential / PtI Annual Results 2012 / IR / 6 February 2013 Dividend to increase for the 3rd consecutive year • Dividend policy “stable and preferably rising” Dividend per ordinary share (€) • Proposal to AGM (May 2013) to increase dividend by € 0.05 to € 1.50 per ordinary share – € 0.48 interim d
Slide 10: Profit Improvement Program
Confidential / PtI Annual Results 2012 / IR / 8 February 2013 Profit Improvement Program • Company-wide programs to support mid-term strategic targets • Expected structural annual benefits: – DSM Resins: € 30m by 2013 – PIP: € 150m by 2014 – PIP Extension € 50-100m by 2015 • PIP one-off cash costs t
Slide 11: Overview
Confidential / PtI Annual Results 2012 / IR / 6 February 2013 Overview • Financial Results 2012 • Building a higher value business • Progress per cluster • 2013 Page 10
Slide 12: DSM in motion: driving focused growth
Confidential / PtI Annual Results 2012 / IR / 6 February 2013 DSM in motion: driving focused growth Page 11
Slide 13: Good 2012 progress on DSM's growth drivers
Confidential / PtI Annual Results 2012 / IR / 6 February 2013 Good 2012 progress on DSM’s growth drivers From From From From reaching out building the machine responsibility portfolio transformation To To To To becoming truly global doubling the output business driver growth High Growth Innovation S
Slide 14: Major acquisitions done in 2012
Confidential / PtI Annual Results 2012 / IR / 6 February 2013 Major acquisitions done in 2012 Acquisition of Kensey Nash • Making DSM biomedical leading medical EV ~€ 275m; 2010/11 device materials supplier in regenerative sales ~US$ 72m, EBITDA ~US$ 29m medicine Acquisition of Ocean Nutrition Canad
Slide 15: Broad product portfolio
Confidential / PtI Annual Results 2012 / IR / 6 February 2013 Value creation and differentiation in Nutrition Active ingredients Delivery Systems Premix & Blends Broad product portfolio One hundred Several thousand Tens of thousands ingredients forms of recipes Vitamins Carotenoids Stability / Shelf
Slide 16: Building unique value chain position in Nutrition
Confidential / PtI Annual Results 2012 / IR / 6 February 2013 Building unique value chain position in Nutrition Portfolio broadened, value chain extended and global presence increased Page 15
Slide 17: Since 2010 strong progress in Acquisitions & Partnerships
Confidential / PtI Annual Results 2012 / IR / 8 February 2013 Since 2010 strong progress in Acquisitions & Partnerships ACQUISITIONS PARTNERSHIPS ~ € 2.4bn Nutrition Nutrition • Premix plant Russia • Martek (microbial DHA/ARA) • Vitatene (natural carotenoids), • Premix plants (Romania, Italy, China)
Slide 18: Enhancing the quality of DSM's earnings profile
Confidential / PtI Annual Results 2012 / IR / 6 February 2013 Enhancing the quality of DSM’s earnings profile *: 2012 EBITDA is including annualized proforma EBITDA of acquisitions Page 17
Slide 19: 2012 progress in High Growth Economies
Confidential / PtI Annual Results 2012 / IR / 6 February 2013 2012 progress in High Growth Economies Sales • 38% of total sales • Nutrition & Performance Materials ~10% growth Highlights • China: • New plants anti-infectives and composite resins • 2nd Caprolactam plant under construction • Latin Ame
Slide 20: Investing in innovation
Confidential / PtI Annual Results 2012 / IR / 6 February 2013 Investing in innovation • Innovation Sales: 18% of sales • 319 new Patents added (DSM in top in NL/Eur) • R&D expenditure: € 490m (5.4% of sales) • New investments in R&D facilities: – Biotech in Delft – Materials Sciences in NL and Singa
Slide 21: DSM Bio-based Products & Services
Confidential / PtI Annual Results 2012 / IR / 6 February 2013 DSM Bio-based Products & Services • Cellulosic bio-ethanol: • Advanced C5 yeast and enzymes commercialized • Construction of POET-DSM 20-25m gallon cellulosic bio-ethanol plant (Iowa), start up beginning 2014 • Advanced bio-diesel, DSM an
Slide 22: DSM Biomedical and DSM Advanced Surfaces
Confidential / PtI Annual Results 2012 / IR / 6 February 2013 DSM Biomedical and DSM Advanced Surfaces • In DSM Biomedical: • Acquisition of Kensey Nash making DSM a leading medical device materials supplier • In DSM Advanced Surfaces: • Strategic approach: focus on solutions for solar industry, wit
Slide 23: Sustainability as business driver
Confidential / PtI Annual Results 2012 / IR / 6 February 2013 Sustainability as business driver • DSM again among leaders Dow Jones Sustainability Index • ECO+ solutions: 43% of running business • 2012 energy efficiency improved by 14% compared to 2008, on track toward 2020 aspiration of 20% • Renew
Slide 24: Partnerships to combat malnutrition
Confidential / PtI Annual Results 2012 / IR / 6 February 2013 Partnerships to combat malnutrition Offering tailored nutritional solutions to fight hunger and malnutrition around the world • At World Economic Forum in Davos (2013), DSM and UN World Food Programme strengthened partnership – 3-year ext
Slide 25: Overview
Overview • Financial Results 2012 • Building a higher value business • Progress per cluster • 2013 Page 24
Slide 26: Nutrition: Continued value growth
Confidential / PtI Annual Results 2012 / IR / 6 February 2013 Nutrition: Continued value growth 2012 progress: portfolio broadened, value chain extended and global presence increased • Continued EBITDA growth driven by advanced forms, premixes, nutritional lipids and contributions from acquisitions
Slide 27: Pharma: Leveraging partnerships for growth
Confidential / PtI Annual Results 2012 / IR / 6 February 2013 Pharma: Leveraging partnerships for growth 2012 progress • Business conditions remained challenging, but good progress was made: • Anti-infectives plants started up • Biologics facility in Brisbane, to open 2013 • Atorvastatin commerciali
Slide 28: PM: Growing via innovative sustainable solutions
Confidential / PtI Annual Results 2012 / IR / 6 February 2013 PM: Growing via innovative sustainable solutions 2012 progress At DSM Engineering Plastics: • Strong performance specialty polymers, partly offset by weakness in PA-6 chain • New capacities for specialty polymers At DSM Dyneema: • Result
Slide 29: PI: Strengthening backward integration for DEP
Confidential / PtI Annual Results 2012 / IR / 6 February 2013 PI: Strengthening backward integration for DEP 2012 progress • Significantly lower results: – high benzene prices – new capacities in market – combined with weak end-use markets in fibers caused a sharp deterioration of margins • 2nd 200k
Slide 30: Overview
Confidential / PtI Annual Results 2012 / IR / 6 February 2013 Overview • Financial Results 2012 • Building a higher value business • Progress per cluster • 2013 Page 29
Slide 31: Q1'13: good start to the year in challenging environment
Q1’13: good start to the year in challenging environment • EBITDA higher than in previous and prior year quarters: – Nutrition – which accounts for about 70% of group EBITDA - demonstrates once again its resilience, with high and stable margins – Q1 negatively impact by caprolactam (€ 65m) • No chan
Slide 32: 2013 Outlook unchanged
2013 Outlook unchanged • Nutrition is expected to show clearly higher results than in 2012 due to organic growth moving towards the target of 2% above GDP and the acquisitions • Business conditions in Pharma are likely to remain challenging though DSM is confident of being able to deliver substantia
Slide 33: Contact
Confidential / PtI Annual Results 2012 / IR / 6 February 2013 Contact: DSM Investor Relations P.O. Box 6500, 6401 JH Heerlen, The Netherlands (+31) 45 578 2864 e-mail: investor.relations@dsm.com internet: www.dsm.com visiting address: Het Overloon 1, Heerlen, The Netherlands Page