Dsm-firmenich Ag · EURONEXT:DSFIR

Dsm-firmenich — Royal DSM — Q1 2016 Earnings Presentation

21 slides from Dsm-firmenich's earnings presentation, 2016

  1. Slide 1: Presentation to Investors Q1 2016 results

    Presentation to Investors Q1 2016 results ROYAL DSM HEALTH NUTRITION MATERIALS

  2. 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

  3. Slide 3: Highlights Q1 2016

    Highlights Q1 2016  DSM reports a strong first quarter  Group net sales up at €1,913 million, with 2% organic growth  Group EBITDA up 19% to €296 million  Nutrition: 6% organic sales growth, EBITDA up 15%  Materials: EBITDA up 10%, supported by low input costs  Group ROCE: improved to 9.8% (Q1

  4. Slide 4: Quote from CEO Feike Sijbesma

    Quote from CEO Feike Sijbesma ““We are pleased to report that we delivered a strong first quarter in terms of growth, profitability and returns, with all businesses seeing the effects of our improvement programs. Both Animal and Human Nutrition delivered above-market volume growth, with Human Nutrit

  5. Slide 5: Key financials | Q1 2016

    Key financials | Q1 2016 in € million Q1 2016 Q1 2015 % Change Sales - Continuing Operations 1,913 1,886 1% EBITDA - Continuing Operations 296 248 19% EBITDA margin - Continuing operations 15.5% 13.1% EBIT - Continuing Operations 185 131 41% ROCE - Continuing Operations (%) 9.8% 6.8% Profit for the

  6. Slide 6: Net sales development | Q1 2016

    Net sales development | Q1 2016 in € million Q1 2016 Q1 2015 % Change Volume Price/mix FX Other Sales - Continuing Operations 1,913 1,886 1% 5% -3% -2% 1% Nutrition 1,250 1,199 4% 7% -1% -4% 2% Materials 600 632 -5% 1% -6% 0% Innovation Center 43 36 19% 19% 0% 0% Corporate Activities 20 19 Discontin

  7. Slide 7: EBITDA development | Q1 2016

    EBITDA development | Q1 2016 in € million Q1 2016 Q1 2015 % Change EBITDA - Continuing Operations 296 248 19% Nutrition 225 195 15% Materials 95 86 10% Innovation Center 1 -5 Corporate Activities -25 -28 Discontinued Operations 0 38 Page 6

  8. Slide 8: Nutrition | Sales overview

    Nutrition | Sales overview Sales bridge – Q1 2015 to Q1 2016  Q1 2016 sales up 4% compared to Q1 2015; 6% organic sales growth -1% – Strong volume growth in Human Nutrition and continued good volume development in Animal Nutrition 1,250 -4% – Price/ mix slightly down 7% 2% – Exchange rates had a 4%

  9. Slide 9: Nutrition | Key financials

    Nutrition | Key financials in € million Q1 2016 Q1 2015 % Change Sales 1,250 1,199 4% EBITDA 225 195 15% EBITDA margin (%) 18.0% 16.3% EBIT 161 129 25% Capital Employed 5,252 5,509 Average Capital Employed 5,281 5,234 ROCE (%) 12.1% 9.9% Total Working Capital 1,399 1,438 Total Working Capital as % o

  10. Slide 10: Animal Nutrition & Health | Sales overview

    Animal Nutrition & Health | Sales overview Sales bridge – Q1 2015 to Q1 2016  Q1 2016 sales showed a 4% organic growth, incl. 5% volume growth, compared to Q1 2015 -1% – This was a good result in particular considering the positive year-end effects on the timing of orders reported in Q4 2015 5% – B

  11. Slide 11: Human Nutrition & Health | Sales overview

    Human Nutrition & Health | Sales overview Sales bridge – Q1 2015 to Q1 2016  Q1 2016 sales developed strongly, with 8% organic growth, albeit against a relatively weak comparable quarter in 2015 – Prices as well as currency effects stable compared with 508 Q1 2015 – Margins supported by favorable p

  12. Slide 12: Materials | Sales overview

    Materials | Sales overview Sales bridge – Q1 2015 to Q1 2016  Q1 2016 sales 5% below Q1 2015 – While volumes were slightly up (+1%), prices were down 6% vs. prior year on the back of lower input costs 1% – Key markets remained soft in Q1 2016 632  DSM Engineering Plastics: Volumes were down slight

  13. Slide 13: Materials | Key financials

    Materials | Key financials in € million Q1 2016 Q1 2015 % Change Sales 600 632 -5% EBITDA 95 86 10% EBITDA margin (%) 15.8% 13.6% EBIT 62 53 17% Capital Employed 1,755 1,930 Average Capital Employed 1,739 1,837 ROCE (%) 14.4% 11.6% Total Working Capital 293 418 1 Total Working Capital as % of Sales

  14. Slide 14: Innovation Center | Key financials

    Innovation Center | Key financials in € million Q1 2016 Q1 2015 % Change Sales 43 36 19% EBITDA 1 -5 EBIT -5 -12 Capital Employed 549 572  Q1 2016 sales 19% above Q1 2015 sales – Increase fully driven by higher volumes; good volume development at DSM Biomedical, which saw sales volumes normalize fo

  15. Slide 15: Corporate Activities | Key financials

    Corporate Activities | Key financials in € million Q1 2016 Q1 2015 Sales 20 19 EBITDA -25 -28 EBIT -33 -39  Q1 2016 EBITDA was €3 million better than Q1 2015, supported in part by the effects of the savings implemented in the DSM-wide support functions Page 14

  16. Slide 16: Key Joint Ventures and Associates | Key financials

    Key Joint Ventures and Associates | Key financials in € million, based on 100% Q1 2016 Q1 2015 % Change DSM Sinochem: Sales 112 117 -4% EBITDA% 16% 13% Patheon1: Sales 376 377 0% EBITDA% 15% 18% ChemicaInvest: Sales 455 n.a. n.a. EBITDA% 4% n.a.  DSM Sinochem Pharmaceuticals (50% DSM) - EBITDA impr

  17. Slide 17: Cash Flow and Working Capital development

    Cash Flow and Working Capital development Cash flow Working Capital% - At year-end in € million Q1 2016 Q1 2015 40% Q1 2015 Q1 2016 EBITDA - Total 296 286 Change in Working Capital -112 -102 30% Income Tax -22 -21 Other -25 -141 20% Cash from Operating Activities 137 22 of which provided by Continui

  18. Slide 18: Net debt and ROCE development

    Net debt and ROCE development Net debt1 ROCE 3,000 20% Q1 2015 Q1 2016 15% 2,000 10% 1,000 5% 0 0% YE 2014 YE 2015 Q1 2016 Total DSM Nutrition Materials  Net debt decreased by €52 million compared to the end of 2015. The decrease was mainly due to the cash flow from operations and value changes of

  19. Slide 19: Dividend proposal to AGM: stable at € 1.65

    Dividend proposal to AGM: stable at € 1.65 Dividend per ordinary DSM share - €  Dividend policy “stable and preferably rising”  Proposal to AGM on 29 April 2016: Maintain the dividend of €1.65 per ordinary share: 1.70 4.5% 1.65 1.65 1.65 – €0.55 interim dividend (paid in August 2015) 4.0% 1.65 – €

  20. Slide 20: Business conditions

    Business conditions Animal Nutrition  Robust market conditions with the exception of Latin America. No significant pressure from animal diseases Human Nutrition  Continued slow market conditions in the Americas, but own growth initiatives gradually kicking in Materials  Macro economic conditions

  21. Slide 21: Bright Science. Brighter Living.

Royal DSM — Q1 2016 Earnings Presentation on 6ix