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Dsm-firmenich — Royal DSM — Investor Day (2011)
43 slides from Dsm-firmenich's investor day presentation, 2011
Slide 1: DSM Capital Markets Days
Royal DSM N.V. Presentations, Vaalsbroek 2011 Life Sciences and Materials Sciences DSM Capital Markets Days Address: DSM Investor Relations P.O. Box 6500, 6401 JH Heerlen The Netherlands Phone: +31 45 5782864 Fax: +31 10 45 90275 Email: investor.relations@dsm.com www.dsm.com
Slide 2: DSM – Bright Science. Brighter Living.
DSM – Bright Science. Brighter Living.™ Royal DSM N.V. is a global science-based company active in health, nutrition and materials. By connecting its unique competences in Life Sciences and Materials Sciences DSM is driving economic prosperity, environmental progress and social advances to create su
Slide 3: DSM in motion: driving focused growth
DSM BRIGHT SCIENCE. BRIGHTER LIVING. DSMain motionsdriving focused growth Feike Sijbesma CEO / Chairman Managing Board Capital Markets Days 2011 HEALTH NUTRITION + MATERIALS 141
Slide 4: DSM in motion: driving focused growth
DSM in motion: driving focused growth + Strategic progress ¢ Transforming our organization + Delivering value through our businesses + Strength of DSM & Outlook 2011 1.2
Slide 5: DSM uses its Bright Science to create Brighter Living
1.3 • DSM uses its Bright Science to create Brighter - Society — which means both communities and Living for people today and for generations to the planet benefit from the impact of more come. Based on a deep understanding of key sustainable, longer-lasting, safer, healthier global trends which are
Slide 6: Innovative and sustainable solutions to global challenges
1.4 • DSM’s business is built around finding • Climate change & energy usage — the accepted innovative and sustainable solutions to some of reality that our fossil-fuel age is causing the world’s most important challenges. These considerable change to our climate is driving solutions are based on a
Slide 7: DSM in motion: driving focused growth strategy
1.5 • ”DSM in motion: driving focused growth” - our strategy announced in 2010 - marked the shift from an era of intensive portfolio transformation to a strategy for the coming years of maximizing sustainable and profitable growth of ‘the new DSM’. The current businesses compose the new core of DSM
Slide 8: Profitability targets for 2013
1.6 • DSM has set itself ambitious targets for this applications introduced in the last five years — new strategy period. We have high aspirations, reached 18%, close to our target of based on an assessment of the opportunities, approximately 20% of total net sales. particularly in high growth econo
Slide 9: Sustainability as a business driver
1.7 • A key element of the new strategy, ”DSM in - DSM is on track with its drive to improve motion: driving focused growth”, was for DSM energy efficiency by 20% by 2020 (compared to go to the next level in sustainability: from to 2008). responsibility to a business driver. - DSM will report progre
Slide 10: Becoming a truly global company
1.8 • A key element of ”DSM in motion: driving focused growth” was to move from being a European company reaching out to the world, to a truly global company. • We have worked hard to drive our market penetration in the high growth economies, increasing from just 22% of sales in these economies in 2
Slide 11: Sales growth in high growth economies
1.9 • The pace of our accelerated sales growth in high growth economies has continued in 2011, particularly in China and India.
Slide 12: Innovation: doubling innovation output
1.10 • In innovation, DSM’s stated ambition is to move and applications introduced in the last five to the next level: from building the machine to years, replacing the previous target of an doubling innovation output. absolute amount of additional sales through innovation. • Since the announcement
Slide 13: Sustainability ambition and ECO+ targets
1.11 • In sustainability, DSM has made it clear that its this leading position in 6 out of the last 8 ambition is to go to the next level: from simple years. responsibility to where sustainability is a business driver, in line with the company’s mission to create brighter lives for people today and
Slide 14: Acquisitions and partnerships
1.12 • When we launched ”DSM in motion: driving focused growth” we made it clear that, alongside stretching organic growth targets, we would also use acquisitions and partnerships to advance our ambitions more rapidly. Clearly, this would need to be partnerships that make strategic sense in terms of
Slide 15: List of acquisitions, partnerships and venturing participations
1.13 • Above a list is given of the acquisitions, partnerships and venturing participations which DSM has concluded or announced since September 2010 in Nutrition, Performance Materials and the Emerging Business Areas. • The Shandong ICD high performance fiber acquisition in China and the premix acq
Slide 16: DSM in motion: driving focused growth
DSM in motion: driving focused growth « Strategic progress ¢ Transforming our organization ¢ Delivering value through our businesses .
Slide 17: Transforming into a genuinely global organization
1.15 • DSM is transforming to become a genuinely • The further transformation of DSM’s global organization able to achieve its strategic organization is supported by DSM’s culture ambitions. By strengthening and empowering change program, which has established a the regional businesses, DSM deepens
Slide 18: Internationalizing the business
1.16 • DSM’s goal is to truly internationalize its and Russia (these roles already existed in business. This will bring us closer to our key China, Japan and the US) and, initially, a markets and customers, strengthen the combined business / president role in Latin regional businesses and stimulate
Slide 19: Executives and talent from high growth economies
1.17 • Because of its internationalization drive, its strategy to grow in high growth economies, DSM wants the number of executives and high and top potentials to grow much faster in the high growth economies than in the other regions. In 2015 approximately one third will be from and working in high
Slide 20: Creating a new culture at DSM
1.18 • The most important step forward in creating a higher performance. new culture at DSM has been the launch of our new brand. Not only does the Bright Science, • In order to facilitate learning across the Brighter Living positioning succinctly capture businesses and regions, several initiatives
Slide 21: Functional Excellence and customer centricity
1.19 • The drive for a global high performance - Customer Management: key account organization is supported by Functional management and customer relationship Excellence programs, one of which focuses on management (CRM) to increase the achieving excellence in Marketing & Sales. effectiveness of mar
Slide 22: DSM in motion: driving focused growth
1.20 DSM in motion: driving focused growth « Strategic progress ¢ Transforming our organization ¢ Delivering value through our businesses « Strength of DSM & Outlook 2011 DSM BRIGHT SCIENCE. BRIGHTER LIVING.
Slide 23: DSM Nutritional Products progress
1.21 • DSM Nutritional Products has made steady the production of vitamin B6, addressing our progress, with continued strong business adverse cost position in Grenzach, Germany. fundamentals. • An additional element of DSM’s nutrition • DSM Nutritional Products’ strength is derived strategy is to ex
Slide 24: Martek acquisition
1.22 • DSM successfully completed the acquisition of expected to deliver new growth opportunities Martek Biosciences Corporation in early 2011. in Life Sciences and Materials Sciences. • Martek had a strong position in PUFAs for infant • The preparation for the integration of DSM and nutrition and a
Slide 25: Pharma businesses and partnerships
1.23 • DSM was clear in presenting its strategy for the Australia in 2013, funded by the Australian next period, ”DSM in motion: driving focused Government. growth”, that it saw the future for both of its pharma businesses as being in partnership with other players who could accelerate transformatio
Slide 26: Anti-infectives demand moving to Asia
1.24 • World demand for — and production of — anti- and DSM and will allow DSM Sinochem infectives is moving rapidly towards Asia and Pharmaceuticals JV to grasp market other high growth economies. Global demand opportunities in China and other high growth growth for beta-lactam antibiotics is expec
Slide 27: DSM Sinochem Pharmaceuticals joint venture
1.25 • The Sinochem Group has taken a 50% equity interest in the business group for a total cash consideration of € 210 million on a cash and debt-free basis with 1 January 2011 as effective date. Sinochem Group and DSM share the cash inflows and outflows of DSM Anti- Infectives as from that date, o
Slide 28: Performance Materials growth opportunities
1.26 • DSM’s Performance Materials businesses are access especially in the high growth economies. well-positioned to capture growth DSM and the Russian company KuibyshevAzot opportunities that arise from the global trends, OJSC have commenced their strategic supplying business sectors where performa
Slide 29: Performance and sustainability drive materials innovation
1.27 • Performance and sustainability are the two key drivers for materials innovation. • New chain tensioner in car engines made from Stanyl® gives higher endurance, lowers weight and friction and saves 1% fuel used during the life of a car and 1 gram CO2 reduction per km (~ € 100 penalty/car regis
Slide 30: Polymer Intermediates position
1.28 • Polymer Intermediates has a uniquely strong driven by strong growth in engineering plastics starting point: its global market position, a and film segments (CAGR > 10%). Being the only solid partnership in China, excellent Western producer with production assets in performance, technological
Slide 31: Emerging Business Areas
1.29 • DSM’s Emerging Business Areas program is economy, particularly in bio-energy and bio- designed to create new growth platforms based based building blocks and materials. Currently on the synergies and strengths of DSM’s Life the following businesses are in development Sciences and Materials Sc
Slide 32: Overview
Overview DSM in motion: driving focused growth Strategic progress Transforming our organization Delivering value through our businesses Strength of DSM & Outlook 2011 DSM BRIGHT SCIENCE. BRIGHTER LIVING. 1.30
Slide 33: Macro-economic outlook and financial position
1.31 • The world faces an uncertain macro-economic • However, limited impact of these factors is outlook, which has the potential to impact visible in DSM’s markets so far. DSM’s new DSM’s future performance. portfolio after its transformation into a Life Sciences and Materials Sciences company is •
Slide 34: More resilient portfolio
1.32 • DSM is confident that its transformation has created a more resilient portfolio. • Compared to 2007 — the year before the financial crisis created a real economy recession — DSM’s business results were much more exposed to commodity chemicals such as fertilizers, melamine, elastomers and capr
Slide 35: High growth economies share of sales
1.33 • High growth economies make up a far larger proportion of DSM’s sales compared with 2007 across the board, increasing from 30% to 37% - a trend which is continuing toward 50% in 2015. As a consequence, in a global slowdown where the high growth economies are less affected than the developed We
Slide 36: EBITDA resilience through the cycle
1.34 • DSM also believes that its business has already proven to be increasingly resilient through this latest highly unusual economic cycle. In 2009, EBITDA for the current continuing business, excluding Martek, was around € 850 million, approximately 15-20% lower than in the previous years. • Post
Slide 37: More secure financial base
1.35 • DSM’s financial base is now considerably more secure than at the moment the last recession hit in Q4 2008. • We have reduced our net debt position, whilst cash in hand is substantial, meaning we are independent of financial markets in order to finance the company and our growth. • Similarly,
Slide 38: Current trading conditions
1.36 • Trading conditions remain in line with the environment as reported in Q2, with strong growth in high growth economies and a slowdown of growth in Western Europe and North America. The Japanese economy is still weak, following the natural disasters in Q1. • Within this macro-economic context t
Slide 39: Nutrition and Pharma trading update
1.37 • The fundamental growth drivers for the • Overall business trading for the Pharma cluster nutrition business remain fully intact and is in line with Q2. unchanged despite the uncertain economic climate. In Animal Nutrition & Health there is strong year-on-year volume growth with moderate to go
Slide 40: Performance Materials and Polymer Intermediates trading
1.38 • Performance Materials is experiencing continued growth in end-user demand, albeit at a lower pace. Asia remains the growth engine and markets like automotive continue to grow. However, engineering plastics for the electronics and electrical (E&E) segment are slowing and the building and const
Slide 41: DSM confirms its 2011 outlook
1.39 • DSM confirms its 2011 outlook.
Slide 42: Disclaimer
6.41 DISCLAIMER This document 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. Examples of forward-looking s
Slide 43: Abbreviations and explanations
6.42 Abbreviation Explanation Abbreviation Explanation 6-APA 6-amino-penicillanic acid EU European Union AGI AGI Corporation Taiwan F&B Food & Beverage AMEA Asscociation of Machinery and FD Finished dosage / final dose Equipment Appraisers FDA Food and Drugs Administration ANH Animal Nutrition & Hea