Dsm-firmenich Ag · EURONEXT:DSFIR
Dsm-firmenich — Royal DSM — Shareholder Meeting (May 2014)
30 slides from Dsm-firmenich's shareholder meeting presentation, May 7, 2014
Slide 1: Royal DSM - Annual Results 2013
Royal DSM - Annual Results 2013 Feike Sijbesma - CEO / Chairman of the Managing Board Annual General Meeting of Shareholders, May 7 2014 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: Overview
Overview • Financial Results 2013 • Building a higher value business • Strategy • Wrap-up • 2014 Page 2
Slide 4: Results FY 2013 - Key figures
Results FY 2013 - Key figures (€ million) FY-2013 FY-2012 D% Continuing operations before exceptional items: Net Sales 9,051 8,588 5% EBITDA 1,263 1,073 18% EPS (€) 2.84 2.59 10% Core EPS (€)* 3.19 2.80 14% Total DSM before exceptional items: Net Sales 9,618 9,131 5% EBITDA 1,314 1,109 18% Total DSM
Slide 5: EBITDA – FY development
EBITDA – FY development EBITDA (€ million) 2013 2012 2011 2010 Nutrition 914 793 735 684 Pharma 3 3 12 28 Performance Materials 324 280 293 283 Polymer Intermediates 113 129 380 223 Innovation Center -17 -38 -57 -49 Corporate Activities -74 -94 -91 -41 Continuing Operations* 1,263 1,073 1,272 1,128
Slide 6: Very good cash flow & healthy financial base
Very good cash flow & healthy financial base Cash Flow FY ’13 FY ’12 (€ million) Cash from operating 889 730 activities Cash from investing -1,188 -1,933 activities* Free cash flow from -299 -1,203 operations Balance sheet YE 2013 YE 2012 (€ million) Net debt 1,862 1,668 Gearing 23% 22% * Excl. chan
Slide 7: Dividend to increase for the 4th consecutive year
Dividend to increase for the 4th consecutive year • Dividend policy “stable and preferably rising” Dividend per ordinary share (€) • Proposal to AGM (May 2014) to increase dividend € 1.75 by 10% from €1.50 to €1.65 per ordinary share – € 0.50 interim dividend (paid in August 2013) – € 1.15 final div
Slide 8: Unrelated headwinds impacting Q4
Unrelated headwinds impacting Q4 • Unfavorable currency developments impacting margins and profit • Lower prices in vitamin E, due to weak market conditions in H1 2013 and the threat of a new entrant • Weakness in US dietary supplements markets, with inventory adjustments in the retail supply chain
Slide 9: Overview
Overview • Financial Results 2013 • Building a higher value business • Strategy • Wrap-up • 2014 Page 8
Slide 10: Shift to higher quality earnings
Shift to higher quality earnings EBITDA (€ m)* Sales by end-market* 1,500 Polymer Intermediates Other Food & Beverages 11% 12% Performance Infant nutrition 1,000 Materials Building & 4% 7% Construction Dietary Supp. 7% Pharma Auto- 8% 2% Personal motive Care 500 Nutrition 9% Textiles 24% 6% Animal F
Slide 11: DSM has become truly global
DSM has become truly global Increase in % of sales to High Growth Economies* 2013 Sales by destination* North America High Growth 20% Economies 41% 41% 34% 32% Western 22% 5% Europe Rest 2005 2010 2013 of World CSD * Sales from continuing operations 41% of DSM’s sales* are now sold into High Growth
Slide 12: Well on track with successful acquisitions
Well on track with successful acquisitions Acquisition Acquired • Martek exceeded expectations • Double digit growth Martek 2011 • Integrated in Business Unit Nutritional Lipids • Successful launches of Martek products outside US • Integrated in Business Unit Nutritional Lipids ONC 2012 • Impacted b
Slide 13: Innovation underpins further growth & profit
Innovation underpins further growth & profit Innovation Sales (as % of total sales) Maxarome® replacing salt, reducing health risks, whilst maintaining a good taste Higher eco-efficiency and renewable content composite resin Palapreg® a/o for bridges Innovation strongly contributes to DSM’s sales gr
Slide 14: Three exciting growth platforms established
Three exciting growth platforms established DSM Biomedical Innovative materials that deliver more advanced clinical procedures and improved patient outcomes DSMBio-based DSM Bio-basedProducts Products&& Services Services Advanced Enzymes and Yeast platforms: enabling Advanced Bio- Energy and Bio-bas
Slide 15: Three dimensional value generation People – Planet - Profit
Three dimensional value generation People – Planet - Profit • People+: Product solutions creating measurable better impact on people’s live than competing alternatives • ECO+: Product solutions creating more value with less environmental impact than competing alternatives Our mission is to create br
Slide 16: Sustainability as a strong business driver
Sustainability as a strong business driver ECO+ Sales (as % of total sales) Eco+: Dyneema® for cargo nets reduces weight, fuel-consumption while improving durability People +: Optimized vitamin-D reduces fractures by 20%: Improving lives & reducing costs Sustainable solutions delivering higher growt
Slide 17: On track with sustainability aspirations
On track with sustainability aspirations Sustainability aspirations 2011 – 2015 2013 Dow Jones Top ranking (“SAM Gold Class”) Gold class per 2014 Sustainability Index Eco+ (innovation) at least 80% of pipeline is ECO+ >95% Eco+ (running business) from ~34% towards 50% 45% 20% improvement in 2020, En
Slide 18: Sustainable partnerships to combat malnutrition
Sustainable partnerships to combat malnutrition Offering tailored nutritional solutions to fight hunger and malnutrition around the world • DSM - UN World Food Program partnership strengthened to combat global malnutrition: double number of beneficiaries to 30 million per year by 2015 • DSM is engag
Slide 19: Overview
Overview • Financial Results 2013 • Building a higher value business • Strategy • Wrap-up • 2014 Page 18
Slide 20: Driving growth by embracing global megatrends
Driving growth by embracing global megatrends Health & Wellness Global shifts Climate & Energy Aging population Population growth Resources constraints Healthcare costs Urbanization Energy security Food security Wealth Sustainability Health Nutrition Materials Page 19
Slide 21: DSM in motion: driving focused growth
DSM in motion: driving focused growth Page 20
Slide 22: Nutrition: continued value growth
Nutrition: continued value growth FROM Actives Forms Premix TO Active Access & Forms Solutions Ingredients insights GLOBAL PRODUCER + LOCAL SOLUTION PROVIDER Broad, global Differentiation through Premixes: from channel- Proprietary access to Portfolio of Actives: industry & segment to- market to cus
Slide 23: Performance Materials: Upgrade portfolio
Performance Materials: Upgrade portfolio Via differentiated strategy: • Accelerate: Accelerate growth in highly innovative markets benefitting from megatrends • Strengthen: Combine sustainable innovation sales growth with margin optimization • Restructure: Composite Resins Page 22
Slide 24: Pharma and Polymer Intermediates
Pharma and Polymer Intermediates Partnership established in Pharmaceutical Products: DPx Holdings • Combining DPP and Patheon is another successful step in DSM’s strategy execution as well as an excellent value creation opportunity: independent stand alone company, of which DSM owns 49% anticipa
Slide 25: 2015 targets
2015 targets Profit targets 2015 • EBITDA margin (%) 14% - 15% • ROCE 11% - 12% Sales target 2015 • Organic sales growth 5%-7% annually • China sales towards US$ 3bn • High Growth Economies sales about 45% of total sales • Innovation sales 20% of total sales • ECO+ sales towards 50% of total sales C
Slide 26: Overview
Overview • Financial Results 2013 • Building a higher value business • Strategy • Wrap-up • 2014 Page 25
Slide 27: Wrap-up 2013
Wrap-up 2013 • 2013 FY EBITDA substantially up to €1,314m (€1,261m continued activities) • Strong cash generation operating activities in 2013 (€889m); solid financial base • Dividend increase of 10% proposed to €1.65 per ordinary share • Significant strategic progress & 2015 targets updated • DPx p
Slide 28: Overview
Overview • Financial Results 2013 • Building a higher value business • Strategy • Wrap-up • 2014 Page 27
Slide 29: Highlights Q1 2014
Highlights Q1 2014 DSM reports Q1 2014 results • In Q1 2014 DSM delivered €272 million EBITDA from continuing operations, in line with expectations • Q1 2014 EBITDA from continuing operations was €29 million below Q1 2013, of which about €23 million was due to adverse exchange rate developments • Th
Slide 30: Bright Science. Brighter Living.