Dsm-firmenich Ag · EURONEXT:DSFIR
Dsm-firmenich — Royal DSM — Q1 2019 Earnings Presentation
20 slides from Dsm-firmenich's earnings presentation, 2019
Slide 1: Presentation to Investors Q1 2019 results
Presentation to Investors Q1 2019 results ROYAL DSM NUTRITION HEALTH SUSTAINABLE LIVING
Slide 2: Quote From the CEO
Quote From the CEO Feike Sijbesma “I am pleased to report a good start to the year, with continued positive momentum, led by our Nutrition business, while Materials continues to demonstrate its resilience. Last year we benefitted from an exceptional growth and profit contribution in Nutrition follow
Slide 3: Q1 2019 Highlights
Q1 2019 Highlights ▪ DSM reports a good start to the year ▪ Results compared to Underlying business in Q1 2018: ✓ Group sales up 3%, Adjusted EBITDA up 10% to €412m (up 14% to €424m including IFRS 16 impact of €12m) ✓ Nutrition: organic sales +3%, Adjusted EBITDA up 11% to €309m (up 14% to €316m inc
Slide 4: Group Key Financials (excluding temporary vitamin effect)
Group Key Financials (comparison with Q1 2018 excluding temporary vitamin effect) in € million Q1 2019 Q1 2018 % Change Underlying1 Temp. Total Underlying1 FX & Underlying1 Temporary Total business vitamin Group Organic ‘other’1 total vitamin Group effect growth growth effect Sales 2,292 2,215 220 2
Slide 5: Group Key Financials (including temporary vitamin effect)
Group Key Financials (comparison with Q1 2018 including temporary vitamin effect) YTD in € million Q1 2019 Q1 2018 % Change Q1 2019 Q1 2018 % Change Sales 2,292 2,435 -6% 2,292 2,435 -6% Adjusted EBITDA 424 538 -21% 424 538 -21% Adjusted EBITDA margin 18.5% 22.1% 18.5% 22.1% ROCE (%) 12.9% 21.8% Eff
Slide 6: Nutrition Key Financials
Nutrition Key Financials Underlying YTD in € million (estimated) Q1 2019 Q1 2018 Q1 2019 Q1 2018 ▪ Underlying business in 2018 is defined as the sales and Adjusted EBITDA, corrected Sales 1,517 1,430 6% 1,517 1,430 6% Adjusted EBITDA1 316 277 14% 316 277 14% for the temporary vitamin effect due to A
Slide 7: Nutrition Q1 2019 Business Overview
Nutrition Q1 2019 Business Overview Sales bridge | Q1 2018 to Q1 2019 (€m) ▪ Q1 2019 sales: Nutrition reported 3% organic growth, against a tough comparison of 12% organic growth in Q1 2018 (excluding the one-time vitamin effect). Total sales were 6% higher compared to Q1 2018. Currencies, especiall
Slide 8: Animal Nutrition & Health Sales Overview
Animal Nutrition & Health Sales Overview Sales bridge | Q1 2018 to Q1 2019 (€m) ▪ Q1 2019 organic sales: The first quarter saw continued good business conditions across all regions except for China where the African swine fever intensified. The effect was partly compensated by higher poultry product
Slide 9: Human Nutrition & Health Sales Overview
Human Nutrition & Health Sales Overview Sales bridge | Q1 2018 to Q1 2019 (€m) ▪ Q1 2019 organic sales. Overall business conditions were good across regions and segments. i-Health, pharma and early life nutrition performed strongly. Food and beverage showed strong premix sales to regional and smalle
Slide 10: Other Nutrition
Other Nutrition Food Specialties – Personal Care – Andre Pectin ▪ DSM’s other Nutrition activities which include Food Specialties, Personal Care, Aroma Ingredients and Hydrocolloids, delivered a strong performance with 12% organic sales growth. ▪ Andre Pectin was re-consolidated in Q1 2019 after DSM
Slide 11: Materials Sales Overview
Materials Sales Overview ▪ Market conditions for some of DSM’s businesses remained challenging, especially in Asia. Automotive, building & construction and electrical & electronics markets experienced continued softness, while the market conditions in the other business segments stayed robust. DSM r
Slide 12: Materials Key Financials
Materials Key Financials YTD in € million Q1 2019 Q1 2018 % Change Q1 2019 Q1 2018 % Change Sales 717 738 -3% 717 738 -3% 1 Adjusted EBITDA 127 126 1% 127 126 1% 1 Adjusted EBITDA margin (%) 17.7% 17.1% 17.7% 17.1% Adjusted EBIT 93 95 -2% 93 95 -2% Capital Employed 1,959 1,824 Average Capital Employ
Slide 13: Innovation Center Key Financials
Innovation Center Key Financials YTD in € million Q1 2019 Q1 2018 % Change Q1 2019 Q1 2018 % Change Sales 47 36 31% 47 36 31% 1 Adjusted EBITDA 6 -1 6 -1 Adjusted EBIT -1 -6 -1 -6 Capital Employed 614 553 1 Including IFRS 16 impact of €1 million in Q1 2019 • Innovation Center had a good start to the
Slide 14: Cash Flow and (operating) Working Capital
Cash Flow and (operating) Working Capital Overview Condensed Cash Flow and (Operating) Working Capital Average Total Working Capital % YTD 40% in € million Q1 2019 Q1 2018 Q1 2019 Q1 2018 Q1 2018 Q1 2019 Cash provided by Operating Activities 201 310 201 310 30% 26% - Cash from APM adjustments 11 19
Slide 15: Net Debt and ROCE
Net Debt and ROCE Overview Net debt (€ million) ROCE% (underlying business) – incl IFRS16 1.000 30 2018 Q1 2019 Q1 21,0 19,2 15,3 15,1 500 414 15 13,3 12,9 113 0 0 End of Year 2018 End of Q1 2019 Total DSM Nutrition Materials ▪ Net debt was €414 million, up from €113 million at the end of 2018, due
Slide 16: Continued step up in Sustainability
Continued step up in Sustainability Q1 2019 highlights ▪ Planet: ▪ New science-based reduction targets for greenhouse gas emissions ▪ New green energy plant at our Sisseln site (CH), together with ENGIE and EWZ, reducing CO2 emissions by 50,000 tons/year ▪ Newly expanded 66-acre solar field in Belve
Slide 17: Outlook 2019 Increased
Outlook 2019 Increased ▪ DSM increases its full year outlook 2019 and now expects to deliver a full year 2019 high single digit increase in Adjusted EBITDA compared to prior year Underlying Adjusted EBITDA (pre-temporary vitamin effect), together with an improvement in Adjusted Net Operating Free Ca
Slide 18: Share Buy-Back program started
Share Buy-Back program started ▪ As of April 1, DSM commenced its ordinary share repurchase program of an aggregate market value of €1 billion as announced on 14 February 2019, with the intention to reduce its issued capital. This program is in addition to the usual repurchase programs which DSM exe
Slide 19: 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 20: Slide 20