Slide 1: Presentation to investors Q1 2017 results
Presentation to investors Q1 2017 results ROYAL DSM HEALTH NUTRITION MATERIALS
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 rea
Slide 3: Highlights Q1 2017
Highlights Q1 2017 § DSM reports a very strong first quarter § Sales up 13% to €2,159m, with 9% organic growth § Adjusted EBITDA up 17% to €345m § ROCE up 150 bps to 11.3% § Cash from operating activities up 43% to €196m § Net profit up 75% to €149m § Outlook maintained: DSM aims to deliver high-sin
Slide 4: Quote from CEO Feike Sijbesma
Quote from CEO Feike Sijbesma § "We are pleased to report a very good start to the year, with continued positive momentum in all businesses as we execute on our mid-term strategic and financial ambitions. Nutrition continued to deliver on its objectives with good growth from Animal and Human Nutriti
Slide 5: Group | Key financials
Group | Key financials in € million Q1 2017 Q1 2016 % Change Sales 2,159 1,913 13% Adjusted EBITDA 345 296 17% Adjusted EBITDA margin 16.0% 15.5% ROCE (%) 11.3% 9.8% Adjusted net profit 163 109 50% Net profit - Total DSM 149 85 75% Adjusted net EPS 0.92 0.60 53% Net EPS - Total DSM 0.84 0.46 Cash Fl
Slide 6: Group | Net sales development
Group | Net sales development in € million Q1 2017 Q1 2016 % Change Volume Price/mix FX Other Sales - Continuing Operations 2,159 1,913 13% 6% 3% 3% 1% Nutrition 1,398 1,250 12% 5% 3% 4% 0% Materials 701 600 17% 11% 3% 1% 2% Innovation Center 43 43 0% 3% -5% 2% 0% Corporate Activities 17 20 Page 5
Slide 7: Group | EBITDA development
Group | EBITDA development in € million Q1 2017 Q1 2016 % Change Adjusted EBITDA 345 296 17% Nutrition 257 225 14% Materials 113 95 19% Innovation Center 1 1 Corporate Activities -26 -25 Page 6
Slide 8: Nutrition | Sales overview
Nutrition | Sales overview § Q1 2017 sales increased by 12% compared to Q1 2016, Sales bridge | Q1 2016 to Q1 2017 driven predominantly by organic growth of 8% – Volume growth continued to be good across all business lines, with both animal and human nutrition benefiting in part from timing of sales
Slide 9: Nutrition | Key financials
Nutrition | Key financials in € million Q1 2017 Q1 2016 % Change Sales 1,398 1,250 12% Adjusted EBITDA 257 225 14% Adjusted EBITDA margin (%) 18.4% 18.0% Adjusted EBIT 185 161 15% Capital Employed 5,555 5,252 Average Capital Employed 5,546 5,281 ROCE (%) 13.3% 12.1% Total Working Capital 1,500 1,399
Slide 10: Animal Nutrition & Health | Sales overview
Animal Nutrition & Health | Sales overview § Q1 2017 sales were up 18% versus Q1 2016, driven mainly Sales bridge | Q1 2016 to Q1 2017 by organic growth of 12% – All regions delivered good volume growth – Our Latin America business, where markets remained 634 weak, benefited from a low comparable re
Slide 11: Human Nutrition & Health | Sales overview
Human Nutrition & Health | Sales overview § Q1 2017 sales were 10% higher compared to Q1 2016 Sales bridge | Q1 2016 to Q1 2017 driven predominantly by higher volumes – Good growth across all regions and market segments, well above market 512 – The reported volume growth in human nutrition in the 0%
Slide 12: Materials | Sales overview
Materials | Sales overview § Q1 2017 sales were 17% higher than Q1 2016, with high Sales bridge | Q1 2016 to Q1 2017 demand for specialties and some stocking effects in parts of the value chain resulting in an exceptionally high volume growth of 11% – DSM Resins & Functional Materials benefited from
Slide 13: Materials | Key financials
Materials | Key financials in € million Q1 2017 Q1 2016 % Change Sales 701 600 17% Adjusted EBITDA 113 95 19% Adjusted EBITDA margin (%) 16.1% 15.8% Adjusted EBIT 81 62 31% Capital Employed 1,831 1,755 Average Capital Employed 1,819 1,739 ROCE (%) 17.9% 14.4% Total Working Capital 332 293 Average To
Slide 14: Innovation | Key financials
Innovation | Key financials in € million Q1 2017 Q1 2016 % Change Sales 43 43 0% Adjusted EBITDA 1 1 Adjusted EBIT -5 -5 Capital Employed 602 549 § Q1 2017 sales and Adjusted EBITDA were stable compared to Q1 2016 – Higher volumes in Biomedical and Advanced Solar and positive FX effects were offset
Slide 15: Corporate Activities | Key financials
Corporate Activities | Key financials in € million Q1 2017 Q1 2016 Sales 17 20 Adjusted EBITDA -26 -25 Adjusted EBIT -39 -33 § Q1 2017 sales and Adjusted EBITDA were in line with Q1 2016 – EBIT was impacted by an impairment of an IT tool Page 14
Slide 16: Key joint ventures/associates | Financial overview
Key joint ventures/associates | Financial overview in € million, based on 100% Q1 2017 Q1 2016 % Change DSM Sinochem Sales 110 112 -2% Adjusted EBITDA% 17% 16% Patheon1 Sales 430 376 14% Adjusted EBITDA% 17% 15% ChemicaInvest Sales 535 455 18% Adjusted EBITDA% 8% 4% § DSM Sinochem Pharmaceuticals (5
Slide 17: Joint ventures/associates | Net result contribution
Joint ventures/associates | Net result contribution in € million Q1 2017 Q1 2016 DSM Sinochem (50%) 3 3 Patheon (33.5%) 7 -12 ChemicaInvest (35%) 0 -3 Other -4 -5 Total share of the profit of 6 -17 associates/joint ventures Page 16
Slide 18: Cash flow and Working Capital | Overview
Cash flow and Working Capital | Overview Cash flow Average Working Capital % in € million Q1 2017 Q1 2016 40% Q1 2016 Q1 2017 EBITDA 334 271 Change in Working Capital -109 -112 30% 27.5% 27.2% Income Tax -15 -22 18.0% 19.0% Other -14 0 20% 11.7% 12.3% Cash from Operating Activities 196 137 10% Cash
Slide 19: Net debt and ROCE | Overview
Net debt and ROCE | Overview Net debt ROCE 3,000 25% Q1 2016 Q1 2017 2,321 2,070 2,081 20% 17.9% 2,000 14.4% 15% 13.3% 11.3% 12.1% 9.8% 10% 1,000 5% 0 0% 2015 2016 Q1 2017 Total DSM Nutrition Materials § Net debt increased slightly by €11 million compared to the end of 2016 and stood at €2,081 milli
Slide 20: Dividend | Proposal to AGM: Increase dividend to €1.75 per ordinary share
Dividend | Proposal to AGM: Increase dividend to €1.75 per ordinary share § Dividend policy “stable and preferably rising” Dividend per ordinary share - € § Reflecting its confidence in the financial performance of the company, DSM proposes to increase the dividend 2.00 6.0% 1.75 § Proposal to the A
Slide 21: DSM Investor Seminar 2017
== SAVE THE DATE == DSM Investor Seminar 2017 25 - 26 September 2017
Slide 22: BRIGHT SCIENCE. BRIGHTER LIVING
BRIGHT SCIENCE. BRIGHTER LIVING