Slide 1: Q2 Results 2012 Presentation to Investors
Q2 Results 2012 Presentation to Investors Life Sciences and Materials Sciences 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 in motion: driving focused growth Q2 results 2012
Slide 4: Overview
Overview • Operational performance Q2 2012 • Progress on strategy • Profit Improvement Program • Business conditions and outlook Page 2 Slide
Slide 5: Highlights Q2 2012
Highlights Q2 2012 DSM reports robust Q2 in challenging environment • Q2 EBITDA from continuing operations €290 million (Q2 2011: €339 million) • Life Sciences continues to deliver robust performance, driven by Nutrition • Materials Sciences improved, except for caprolactam which had an EBITDA impac
Slide 6: Quote from Feike Sijbesma
Quote from Feike Sijbesma “Despite the challenging macro-economic environment, I am pleased that DSM was able to deliver another robust set of results demonstrating the strength of our strategy, as evidenced by the ongoing strong performance of Nutrition. Our Life Sciences clusters accounted for aro
Slide 7: Results Q2 2012 - Key figures
Results Q2 2012 - Key figures Q2-2012 Q2-2011 % (€ million) H1-2012 H1-2011 % Continuing operations before exceptional items: 2,268 2,265 0% Net Sales 4,558 4,499 1% 290 339 -14% EBITDA 596 664 -10% 168 238 -29% EBIT 368 469 -22% 0.67 0.97 -31% EPS (€) 1.54 1.88 -18% Total DSM before exceptional ite
Slide 8: EBITDA – DSM continuing business
EBITDA – DSM continuing business EBITDA (€ million) H1–2012 H1–2011 H1-2010 H1–2009 (*) H1–2008 (*) Nutrition 387 366 354 330 252 Pharma 22 12 28 43 68 Performance Materials 156 173 155 50 191 Polymer Intermediates 99 192 110 -11 78 Innovation Center (*) -25 -26 -26 (**) (**) Corporate activities (*
Slide 9: Net sales growth Q2-2012 versus Q2-2011
Net sales growth Q2-2012 versus Q2-2011 (€ million) Q2-2012 Q2-2011 Diff. Volume Price FX Other Nutrition 899 839 7% 1% 1% 5% 0% Pharma 182 178 2% 7% 2% 2% -9% Performance Materials 713 709 1% -6% -1% 6% 2% Polymer 389 423 -8% -3% -11% 6% Intermediates Innovation Center 18 14 Corporate activities 67
Slide 10: Nutrition
Nutrition Q2-2012 Q2-2011 % (€ million) H1-2012 H1-2011 % 899 839 +7% Net Sales 1,799 1,637 +10% 195 193 +1% EBITDA 387 366 +6% 153 154 -1% EBIT 302 294 +3% 21.7% 23.0% EBITDA margin 21.5% 22.4% • In the second quarter of 2012 sales growth in Nutrition was 7% compared to Q2 2011, supported by health
Slide 11: Pharma
Pharma Q2-2012 Q2-2011 % (€ million) H1-2012 H1-2011 % 182 178 2% Net Sales 357 341 5% 17 12 42% EBITDA 22 12 83% -4 0 EBIT -12 -10 9.3% 6.7% EBITDA margin 6.2% 3.5% • In Q2 2012 net sales growth was 2%, despite the negative impact from the 50% deconsolidation of DSM Sinochem Pharmaceuticals. Organi
Slide 12: Performance Materials
Performance Materials Q2-2012 Q2-2011 % (€ million) H1-2012 H1-2011 % 713 709 +1% Net Sales 1,414 1,414 - 77 82 -6% EBITDA 156 173 -10% 42 53 -21% EBIT 90 115 -22% 10.8% 11.6% EBITDA margin 11.0% 12.2% • In Q2 2012 sales growth was 1% compared to Q2 2011, with positive currency developments and the
Slide 13: Polymer Intermediates
Polymer Intermediates Q2-2012 Q2-2011 % (€ million) H1-2012 H1-2011 % 389 423 -8% Net Sales 819 880 -7% 30 93 -68% EBITDA 99 192 -48% 23 86 -73% EBIT 85 176 -52% 7.7% 22.0% EBITDA margin 12.1% 21.8% • Sales development was -8% compared to Q2 2011, due to 11% lower prices and 3% lower volumes, partly
Slide 14: Innovation Center
Innovation Center Q2-2012 Q2-2011 % (€ million) H1-2012 H1-2011 % 18 14 +29% Net Sales 34 28 +21% -10 -13 EBITDA -25 -26 -14 -16 EBIT -31 -32 - - EBITDA margin - - • Results were above the usual level as a result of somewhat higher Biomedical sales as well as lower costs. The acquisition of Kensey N
Slide 15: Higher cash flow from operating activities
Higher cash flow from operating activities Cash flow OWC development Q1’09 – Q2’12 H1 2012 H1 2011 (€ million) Cash from operating OWC (€m) % OWC/Sales (right axis) 294 156 activities 3000 30% Cash from investing -437 -434 activities 25% Free cash flow from -143 -278 2000 20% operations 15% Balance
Slide 16: Dividend increased for 2nd consecutive year
Dividend increased for 2nd consecutive year • Interim dividend for the year 2012: €0.48 Dividend per ordinary share (€) per ordinary share, which, as usual, 2011 represents one third of the total dividend € 1,50 € 1.45 paid for the previous year (2011) • In cash or ordinary shares € 1,25 • Dividend
Slide 17: Overview
Overview • Operational performance Q2 2012 • Progress on strategy • Profit Improvement Program • Business conditions and outlook Page Slide15 15
Slide 18: Global societal trends drive DSM’s markets
Global societal trends drive DSM’s markets Health Health & W Wellness ellness Global shifts Climate & Energy Ageing population Population growth Resources constraints Healthcare costs Urbanization Energy security Food security Wealth Sustainability Health Nutrition Materials Page Slide 16 16
Slide 19: DSM in motion: driving focused growth
DSM in motion: driving focused growth Page Slide 17 17
Slide 20: Solid progress with strategic ambitions in Q2
Solid progress with strategic ambitions in Q2 High Growth Economies • Sales to High Growth Economies was 39% of total sales (37% in Q2 2011) driven by double digit growth in Nutrition and Performance Materials • Q2 China sales: US$ 430 million Innovation • Multiple new product launches, innovation s
Slide 21: Ocean Nutrition Canada: leader in Omega-3
Ocean Nutrition Canada: leader in Omega-3 Transaction completed 19 July 2012 • Total enterprise value CAD 540m (~ € 420m), in an all cash transaction • Expected 2012 net sales approx. CAD 190m with EBITDA CAD 55-60m • Value creating acquisition Strategic fit • Consistent with Nutrition cluster strat
Slide 22: Nutritional Lipids, double digit growth business
Nutritional Lipids, double digit growth business Sales >US$ 500m DSM Nutritional Lipids, market leader in PUFAs EBITDA > US$ 150m Omega-3 (DHA) and Omega-6 (ARA), Algal derived • Health benefits in eye, cognition and brain development • Strengthening DSM in North American Infant Nutrition market • L
Slide 23: Compelling innovation growth platforms in place
Compelling innovation growth platforms in place Unlocking the cellulosic bio-ethanol opportunity Creating a leading biomedical business • Start-up expected end of 2013 / • Double digit sales growth (excl. beginning of 2014 AngioSeal) • JV is expected to be profitable in first • New technology platfo
Slide 24: Total acquisitions now reaching € 2.2bn
[Page updated after Q2 results after acquisition of Tortuga] Total acquisitions now reaching € 2.2bn* ACQUISITIONS PARTNERSHIPS Nutrition € ~1.8bn Nutrition • Martek (microbial DHA/ARA) • Premix plant Russia • Vitatene (natural carotenoids), Pharma • Premix plants (Rumania, Italia) • DSM Sinochem Ph
Slide 25: Overview
Overview • Operational performance Q2 2012 • Progress on strategy • Profit Improvement Program • Business conditions and outlook Page Slide 23 23
Slide 26: Profit Improvement Program to deliver €150m
Profit Improvement Program to deliver €150m • Company wide Profit Improvement Program: Key elements – Implementation the next 18 months – Main focus on cost reductions and efficiency of DSM’s PIP improvements – Expected structural annual benefits of €150m Cost reductions – Fully effective by 2014 •
Slide 27: Examples of a broad range of projects started
Examples of a broad range of projects started • Improving competitiveness of key vitamins (Bs and C) with restructuring projects in Grenzach (D) and Dalry (UK) • Efficiency synergies via integration Martek • Reduction of the Swiss Franc dependency Life Sciences • Closing of the LTP plant in Sweden •
Slide 28: Overview
Overview • Operational performance Q2 2012 • Progress on strategy • Profit Improvement Program • Business conditions and outlook Page Slide 26 26
Slide 29: Nutrition markets continue resilience
Nutrition markets continue resilience Feed: animal protein demand stays firm Food markets continue global growth • Continued strong demand for animal • Continued market growth in all protein in all geographic areas regions and segments with some • Continued growing premix demand softening in Europe
Slide 30: Unique position key for differentiation & growth
Unique position key for differentiation & growth Active ingredients Delivery Systems Premixes Vitamins Stability / Shelf Life Custom Formulation Broad product portfolio Carotenoids Delivery / Solubility Enzymes Bio-availability Dilution Nutritional lipids Powder / Flow Nutritional ingredients Proper
Slide 31: Nutrition: sustained good business conditions
Nutrition: sustained good business conditions Business conditions Continuous profit increase • Continued growth with stable pricing • Ocean Nutrition Canada contributing to EBITDA Rolling 4Qs EBITDA growth (~€20m in EBITDA in H2 2012) 200 • Further expansion of premix network Quarterly EBITDA (milli
Slide 32: Pharma: conditions likely to remain challenging
Pharma: conditions likely to remain challenging Business conditions Opening of new 6-APA plant in Yushu, China • Slightly better market conditions • Improved CMO pipeline (impact after 2012) • New 6-APA plant on stream (full benefit in 2013) Sensitivities • Price of SSPs/SSCs • Currencies (US$) • En
Slide 33: PM: End-market outlook remains uncertain
PM: End-market outlook remains uncertain Business conditions Olympic cycling shorts containing Dyneema® • Ongoing volatile and uncertain market conditions • Trading conditions are not expected to improve in H2 2012 versus H1 2012 • No large vehicle protection orders expected in DSM Dyneema • Restruc
Slide 34: PI: Margin pressure and scheduled turnarounds
PI: Margin pressure and scheduled turnarounds Business conditions Caprolactam for fibers for heavy duty tires • Caprolactam: – Prices and margins declined during Q2 • End user demand is weak • High benzene prices affecting margins • Some smaller new entrants – No significant improvements in business
Slide 35: Outlook
Outlook • In Nutrition, EBITDA is now expected to be clearly above 2011. Ocean Nutrition Canada will add about €20 million in EBITDA for the remainder of the year. • Pharma is expected to deliver a slightly improved EBITDA despite the 50% deconsolidation of the anti-infectives business. • Full year
Slide 36: Wrap up
Wrap up • Robust Q2 performance in challenging market conditions, except for caprolactam • Strategic progress continued – Closing of Kensey Nash acquisition – Acquisition of Ocean Nutrition Canada, which will further contribute to the sustainable growth of the Nutrition cluster moving towards €4 bil
Slide 37: Acquisition of Ocean Nutrition Canada
Acquisition of Ocean Nutrition Canada Adding world’s largest fish oil derived Omega-3 supplier Investor Relations May 18, 2012
Slide 38: Overview
Overview • Transaction highlights • Ocean Nutrition Canada at a glance • Acquisition rationale Page Page 361
Slide 39: Transaction highlights Ocean Nutrition Canada
Transaction highlights Ocean Nutrition Canada Acquisition • Total enterprise value CAD 540m (~ € 420m), in an all cash transaction • Expected 2012 net sales approx. CAD 190m with EBITDA CAD 55-60m • Value creating acquisition; EPS accretive as from 2013 Strategic fit • Consistent with Nutrition clus
Slide 40: Nutritional lipids, a fast growing market
Nutritional lipids, a fast growing market Healthy Nutritional Lipids Awareness of Omega-3 is almost universal • Different sources; microbial Omega-3 (DHA) Aware Unaware and Omega-6 (ARA) and fish-oil derived 100% Omega-3 (EPA / DHA) • These have different value propositions and pricing 75% Growing b
Slide 41: A growing body of scientific evidence
A growing body of scientific evidence Omega-3 cumulative # studies: 20,000+ Abundant science for many health benefits 1650 Brain/nerve Cardiovascular • Infant brain • Coronary hearth development disease 16,000 • Mental/cognitive • Atherosclerosis 34 development • Blood pressure • Memory performance
Slide 42: Overview
Overview • Transaction highlights • Ocean Nutrition Canada at a glance • Acquisition rationale Page Page 405
Slide 43: Ocean Nutrition Canada, leader in fish-oil Omega-3
Ocean Nutrition Canada, leader in fish-oil Omega-3 Revenues Strong presence in North America • Average annual growth in local currencies nearly 20% over the past 5 years North America • Expected 2012 net sales approximately Europe CAD 190m with EBITDA CAD 55-60m Asia ROW Company • HQ in Halifax, Nov
Slide 44: High quality and strong brand recognition
High quality and strong brand recognition The brand: MEG-3® - trust the source® Dietary Supplements • MEG-3® 30% oils • MEG-3® Concentrate oils (40-75%) Food & Beverage Excellent, well certified quality • MEG-3® Powder • GOED (Global Organization of Omega-3 EPA and DHA Omega-3) • MEG-3® • CFIA (Cana
Slide 45: Overview
Overview • Transaction highlights • Ocean Nutrition Canada at a glance • Acquisition rationale Page Page 438
Slide 46: Nutrition: Continued value growth
[Page updated after Q2 results after acquisition of Tortuga] Nutrition: Continued value growth Aspiration by 2015 Continuous profit increase • Growth GDP + 2% • EBITDA margin >20 - 23% Strategic progress • Expanded offering through M&A activities • Expanded to 55 premix facilities • Successful proce
Slide 47: Next step in Nutrition’s value growth strategy
Next step in Nutrition’s value growth strategy Key elements of Nutrition strategy Acquisition of Ocean Nutrition Canada • Strengthens and complements • Continued strengthening of the DSM’s global Nutritional Lipids core of the business growth platform • Strengthens DSM’s position in the North Americ
Slide 48: Creating Nutritional Lipids growth platform
Creating Nutritional Lipids growth platform • Acquisition strengthens and complements DSM’s global Nutritional Lipids growth platform • DSM is active in microbial Omega-3 (DHA) and Omega-6 (ARA) • Ocean Nutrition Canada is active in fish-oil derived Omega-3 (EPA / DHA) • These are highly complementa
Slide 49: Opportunities for accelerated growth
Opportunities for accelerated growth • Strengthening DSM in North American dietary supplement market Dietary Supplements • Leveraging DSM global infrastructure to expand in dietary supplement markets outside North America • Leveraging DSM global footprint, customer relationships and Food & position
Slide 50: Value creating, EPS accretive as from 2013
Value creating, EPS accretive as from 2013 Financial impact • Expected 2012 net sales approximately CAD 190m with EBITDA CAD 55-60m • EPS accretive as from 2013 • Predominantly sales synergies, some cost synergies Expectations by 2015 • Ongoing double digit sales growth • With continued high margins
Slide 51: Conclusion
Conclusion • Fully supports DSM’s growth strategy “DSM in motion: driving focused growth” • Good strategic fit with Nutrition cluster strategy • Acquisition strengthens and complements DSM’s global Nutritional Lipids growth platform in a double digit growing market • Material growth synergies in bui
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Slide 53: The acquisition of Tortuga
The acquisition of Tortuga Strengthening our animal nutrition business Investor Relations 8 August, 2012
Slide 54: Overview
Overview • Tortuga at a glance • Acquisition rationale Page 52 Slide 1
Slide 55: DSM to acquire Tortuga in an all-cash transaction
DSM to acquire Tortuga in an all-cash transaction Acquisition • Total enterprise value ~ € 465m(*) in cash • 2012 expectations: net sales ~ € 385m and EBITDA ~ € 60m • Value creating acquisition; immediately EPS accretive • Execution of Nutrition cluster strategy “continued value growth” Strategic f
Slide 56: Tortuga, leader in supplements for ruminants
Tortuga, leader in supplements for ruminants Financials • 2012 expectations: Tortuga locations in Brazil Net sales ~ €385m and EBITDA ~ €60m Privately held Brazilian company • Leading company in nutritional supplements with focus on pasture raised beef and dairy cattle Pecém • HQ in Sao Paulo, 1200
Slide 57: Supplements for pasture based ruminants
Supplements for pasture based ruminants Ruminant in feedlot vs pasture based Free Choice Nutritional Supplements • DSM’s current feed activities for ruminants are focusing on ruminants in feedlot • Pasture based ruminants, where Tortuga is focusing on, is a relatively new market to DSM Free Choice N
Slide 58: Tortuga is recognized for its premium brand
Tortuga is recognized for its premium brand Fosbovi, “at the top of the farmer’s mind” in Latin America • Specific supplements for regions (e.g. low mineral content areas) or season (e.g. rain or dry season). • Products for various life stages (e.g. beef calves lactating, growing phase) • Increasing
Slide 59: Supplying highly attractive markets
Supplying highly attractive markets Global supplements market for ruminants Brazil is one of the largest markets • Total size estimated well in access of (Total Cattle numbers in millions) € 4bn globally • Brazil is #2 market • Global market growth ~3% (Brazil: ~4-5%) Organic trace minerals • Curren
Slide 60: Overview
Overview • Tortuga at a glance • Acquisition rationale Page 58 Slide 7
Slide 61: Total acquisitions now reaching € 2.2bn
Total acquisitions now reaching € 2.2bn* ACQUISITIONS PARTNERSHIPS Nutrition € ~1.8bn Nutrition • Martek (microbial DHA/ARA) • Premix plant Russia • Vitatene (natural carotenoids), Pharma • Premix plants (Rumania, Italia) • DSM Sinochem Pharmaceuticals • Food enzymes business and technology (Vereniu
Slide 62: Nutrition: Continued value growth
Nutrition: Continued value growth Aspiration by 2015 Continuous profit increase • Growth GDP + 2% • EBITDA margin >20 - 23% Strategic progress • Expanded offering through M&A activities • Expanded to 55 premix facilities • Successful process developments; improving cost position • Assets optimizatio
Slide 63: Animal feed: customer value through efficacy
Animal feed: customer value through efficacy Vitamin Macro Premix Protein Supplementary Vitamin Straights Premix Complete Feed forms / supplements Concentrate Feed Animal feed composition Grains Various Protein Components Differentiation by feed (Soya, sunflower meal, etc.) conversion know-how Singl
Slide 64: Next step in Nutrition’s value growth strategy
Next step in Nutrition’s value growth strategy Key elements of Nutrition strategy Acquisition of Tortuga • Continued strengthening of the • Strengthens DSM’s presence in core of the business nutritional supplements and additives for ruminants • Establishment of new growth • Strengthens presence in B
Slide 65: The acquisition offers value creating synergies
The acquisition offers value creating synergies Sales synergies • Introducing DSM ingredients into Tortuga’s product range and distribution channels • Leveraging Tortuga’s know-how and strong position in ruminant supplements globally • Introduction of Tortuga's trace mineral products to other market
Slide 66: Tortuga complements value chain presence
Tortuga complements value chain presence DSM production Sourced by DSM • Vitamins • Carotenoids • Di-Calcium Phosphate • Enzymes • Organic trace minerals • Eubiotics Complete feed Active Forms Premix ingredients Supplements Tortuga production Sourced by Tortuga • Di-Calcium Phosphate • Vitamins • Or
Slide 67: Value creating, EPS accretive from the start
Value creating, EPS accretive from the start Financial impact • 2012 expectations: Net sales ~ €385m and EBITDA ~ €60m • Immediately EPS accretive • Predominantly sales synergies, some cost synergies Expectations by 2015 • Sales growth above Nutrition cluster aspiration (GDP +2%) • Increasing EBITDA
Slide 68: Conclusion
Conclusion • Fully supports DSM’s growth strategy “DSM in motion: driving focused growth” • Good strategic fit with Nutrition cluster strategy • Acquisition strengthens and complements DSM’s animal nutrition & health business • Capture value from DSM’s extended value chain presence with a broad port
Slide 69: Disclaimer
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 70: Contact
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
Slide 71: DSM reports robust Q2 in challenging environment
Press Release DSM, Corporate Communications email media.relations@dsm.com Heerlen (NL), 7 August 2012. www.dsm.com 21E DSM reports robust Q2 in challenging environment Q2 EBITDA from continuing operations €290 million (Q2 2011: €339 million) Life Sciences continues to deliver robust performance, dri
Slide 72: Operating profit before depreciation and amortization (EBITDA)
second quarter first half 2012 2011 +/- in € million 2012 2011 +/- Continuing operations 2,268 2,265 0% Net sales 4,558 4,499 1% Operating profit before depreciation and 290 339 -14% amortization (EBITDA) 596 664 -10% 195 193 - Nutrition 387 366 17 12 - Pharma 22 12 77 82 - Performance Materials 156
Slide 73: Overview
Overview The world economy developed less positively than expected, mainly due to the continuing Eurozone challenges, which are prolonging weak consumer sentiment and resulting in a recession in parts of Europe. China experienced an economic slowdown owing to weaker exports though growth is still at
Slide 74: Net sales by cluster
Net sales in € million second quarter 2012 2011 differ- organic exch. other ence growth rates Nutrition 899 839 7% 2% 5% 0% Pharma 182 178 2% 9% 2% -9% Performance Materials 713 709 1% -7% 6% 2% Polymer Intermediates 389 423 -8% -14% 6% Innovation center 18 14 Corporate activities 67 102 Total (cont
Slide 75: DSM initiates Profit Improvement Program
DSM initiates Profit Improvement Program Considering the economic uncertainty, especially in Europe, and challenging developments in some markets, DSM has decided to implement a company wide Profit Improvement Program, mainly focused on cost reductions and efficiency improvements, but also on sales
Slide 76: Business review by cluster: Nutrition and Pharma
Business review by cluster Nutrition second quarter in € million first half 2012 2011 2012 2011 899 839 Net sales 1,799 1,637 195 193 EBITDA 387 366 153 154 EBIT 302 294 21.7% 23.0% EBITDA margin 21.5% 22.4% In the second quarter of 2012 sales growth in Nutrition was 7% compared to Q2 2011, supporte
Slide 77: Performance Materials and Polymer Intermediates
Performance Materials second quarter in € million first half 2012 2011 2012 2011 713 709 Net sales 1,414 1,414 77 82 EBITDA 156 173 42 53 EBIT 90 115 10.8% 11.6% EBITDA margin 11.0% 12.2% In Q2 2012 sales growth was 1% compared to Q2 2011, with positive currency developments and the impact of acquis
Slide 78: Innovation Center and Corporate activities
Innovation Center second quarter in € million first half 2012 2011 2012 2011 18 14 Net sales 34 28 -10 -13 EBITDA -25 -26 -14 -16 EBIT -31 -32 Results were above the usual level as a result of somewhat higher Biomedical sales as well as lower costs. The acquisition of Kensey Nash was completed on Ju
Slide 79: Cash flow, capital expenditure and financing
sale of the Danisco shares (total profit of €226 million), while in Q2 2012 restructuring costs and impairments were included for €73 million. Net earnings per ordinary share (continuing operations, before exceptional items) amounted to €0.67 in Q2 2012 compared to €0.97 in Q2 2011. Cash flow, capit
Slide 80: Sustainability: from responsibility to a business driver
Sustainability: from responsibility to a business driver The share of Eco+ products in DSM’s running business portfolio has increased gradually to 42% in the first half of 2012 from 39% the same period a year earlier. This is aligned with DSM’s efforts of expanding Eco+ products in its portfolio and
Slide 81: Outlook
Outlook Considering the economic uncertainty, especially in Europe, and challenging developments in some markets, DSM has decided to implement a company wide Profit Improvement Program that is expected to generate annual recurring EBITDA benefits of around €150 million by 2014. Benefits for 2012 are
Slide 82: Condensed consolidated statement of income for the second quarter
Condensed consolidated statement of income for the second quarter second quarter 2012 in € million second quarter 2011 before excep- total before excep- total excep- tional excep- tional tional items tional items items items 2,268 2,268 net sales 2,299 2,299 290 -67 223 EBITDA from continuing operat
Slide 83: Condensed consolidated statement of income for the first half
Condensed consolidated statement of income for the first half first half 2012 in € million first half 2011 before excep- total before excep- total excep- tional excep- tional tional items tional items items items 4,558 4,558 net sales 4,644 4,644 596 -67 529 EBITDA from continuing operations 664 -17
Slide 84: Consolidated balance sheet: assets
Consolidated balance sheet: assets in € million 30 June 2012 year-end 2011 intangible assets 2,064 1,786 property, plant and equipment 3,578 3,405 deferred tax assets 340 292 associates 38 35 other financial assets 148 135 non-current assets 6,168 5,653 inventories 1,776 1,573 trade receivables 1,72
Slide 85: Consolidated balance sheet: equity and liabilities
Consolidated balance sheet: equity and liabilities in € million 30 June 2012 year-end 2011 shareholders' equity 5,882 5,784 non-controlling interest 224 190 equity 6,106 5,974 deferred tax liability 201 192 employee benefits liabilities 304 322 provisions 135 116 borrowings 2,056 2,029 other non-cur
Slide 86: Condensed consolidated cash flow statement
Condensed consolidated cash flow statement first half in € million 2012 2011 cash, cash equivalents and current investments at beginning of period 2,147 2,290 current investments at beginning of period 89 837 cash and cash equivalents at beginning of period 2,058 1,453 operating activities: - earnin
Slide 87: Condensed consolidated statement of comprehensive income
Condensed consolidated statement of comprehensive income in € million first half 2012 2011 exchange differences on translation of foreign operations 100 -116 actuarial gains and losses and asset ceiling 0 0 change in fair value reserve -2 -84 change in hedging reserve -40 12 income tax expense 16 23
Slide 88: Condensed report business segments
Condensed report business segments first half 2012 (in € million) continuing operations Discon- Elimi- Total Nutrition Pharma Performance Polymer Innovation Corporate Elimi- Total tinued nation Materials Intermediates center activities nation continuing operations operations net sales 1,799 357 1,41
Slide 89: Geographical information (continuing operations)
Geographical information (continuing operations) The Rest of Eastern North Latin China India Japan Rest of Rest of Total Nether- Western Europe America America Asia the first half 2012 lands Europe world net sales by origin in € million 1,518 1,388 54 795 126 462 46 59 87 23 4,558 in % 33 30 1 17 3
Slide 90: Notes to the financial statements
Notes to the financial statements Accounting policies and presentation The consolidated financial statements of DSM for the year ended 31 December 2011 were prepared according to International Financial Reporting Standards (IFRS) as adopted by the European Union and valid as of the balance sheet dat
Slide 91: Acquisition of Kensey Nash
Acquisition of Kensey Nash Book in € million value intangible assets 17 property, plant and equipment 47 other non-current assets 18 inventories 12 receivables 12 cash and cash equivalents 30 total assets 136 non-current liabilities 28 current liabilities 50 total liabilities 78 net assets at book v
Slide 92: Dividends and equity
Dividends and equity On 6 June the final dividend of €1.00 per share for the year 2011 was paid to holders of ordinary shares and a dividend of €0.15 per share was paid to holders of cumulative preference shares A. The total distribution to shareholders amounting to €171 million, of which €62 millio
Slide 93: Important dates
Important dates Ex interim dividend quotation Wednesday, 8 August 2012 Record date Friday, 10 August 2012 Interim dividend payable Thursday, 30 August 2012 Report for the third quarter 2012 Tuesday, 6 November 2012 Annual Report 2012 Wednesday, 20 February 2013 Report for the first quarter 2013 Thur
Slide 94: Financial Overview Q2 2012
Financial Overview Q2 2012 in million of Performance Polymer Innovation Corporate DSM Nutrition Pharma Euros Materials Intermediates Center Activities Continuing operations Q2'12 Q2'11 Chg.% Q2'12 Q2‘11 Chg.% Q2'12 Q2'11 Chg.% Q2'12 Q2'11 Chg.% Q2'12 Q2'11 Chg.% Q2'12 Q2'11 Chg.% Q2'12 Q2'11 Chg.% b
Slide 95: Financial Overview H1 2012
Financial Overview H1 2012 in million of Performance Polymer Innovation Corporate DSM Nutrition Pharma Euros Materials Intermediates Center Activities Continuing operations H1'12 H1'11 Chg.% H1'12 H1'11 Chg.% H1'12 H1'11 Chg.% H1'12 H1'11 Chg.% H1'12 H1'11 Chg.% H1'12 H1'11 Chg.% H1'12 H1'11 Chg.% b
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Slide 99: 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 100: Presentation to Investors
Q2 Results 2012 Presentation to Investors Life Sciences and Materials Sciences 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