Dsm-firmenich Ag · EURONEXT:DSFIR
Dsm-firmenich — Royal DSM — Q3 2015 Earnings Presentation
24 slides from Dsm-firmenich's earnings presentation, Nov 3, 2015
Slide 1: Presentation to Investors
Life Sciences and Materials Sciences Presentation to Investors Q3 Results 2015, 3 November 2015 Page
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
Slide 3: Overview
Overview • Q3 2015 Operational performance • Business conditions and outlook Page 2
Slide 4: Highlights Q3 2015
Highlights Q3 2015 DSM reports Q3 2015 results • Sales up 8%, driven by 7% organic growth in Nutrition and foreign exchange • Solid volume growth in Human Nutrition; very strong volume growth in Animal Nutrition • Nutrition EBITDA: negative impact of vitamin E and Swiss franc largely offset • Perfor
Slide 5: Quote from Feike Sijbesma
Quote from Feike Sijbesma “DSM continued to make good progress in Q3 in both EBITDA and cash generation. These results demonstrate the benefits of our focus on improving our operational performance. We are starting to implement the previously announced €125-150 million cost reduction program for the
Slide 6: Results Q3 2015 - Key figures
Results Q3 2015 - Key figures Q3 -2015 Q3-2014 D% (€ million) YTD-2015 YTD-2014 D% Continuing operations before exceptional items: 1,945 1,794 8% Net Sales 5,796 5,240 11% 287 281 2% EBITDA 814 784 4% 0.59 0.64 -8% EPS (€) 1.61 1.78 -10% 0.70 0.76 -8% Core EPS (€)* 1.95 2.08 -6% Total DSM before exc
Slide 7: Net sales growth Q3-2015 versus Q3-2014
Net sales growth Q3-2015 versus Q3-2014 Price/ (€ million) Q3 2015 Q3 2014 Diff. Volume FX Other Mix Nutrition 1,253 1,091 15% 6% 1% 6% 2% Performance Materials 631 638 -1% -3% -5% 7% Innovation Center 42 40 5% -5% -1% 11% Corporate Activities 19 25 Continuing Operations* 1,945 1,794 8% 2% -1% 6% 1%
Slide 8: Net sales growth YTD-2015 versus YTD-2014
Net sales growth YTD-2015 versus YTD-2014 YTD- YTD- Price/ (€ million) Diff. Volume FX Other 2015 2014 Mix Nutrition 3,699 3,211 15% 5% 0% 9% 1% Performance Materials 1,927 1,842 5% 1% -4% 8% Innovation Center 115 112 3% -9% -1% 13% Corporate Activities 55 75 Continuing Operations* 5,796 5,240 11% 3
Slide 9: EBITDA – development Q3
EBITDA – development Q3 EBITDA (€ million) Q3-2015 Q3-2014 D% Nutrition 213 225 -5% Performance Materials 102 87 17% Innovation Center 0 -4 Corporate Activities -28 -27 Continuing Operations* 287 281 2% * Continuing operations Page 8
Slide 10: EBITDA – development YTD
EBITDA – development YTD EBITDA (€ million) YTD-2015 YTD-2014 D% Nutrition 616 650 -5% Performance Materials 294 243 21% Innovation Center -8 -15 Corporate Activities -88 -94 Continuing Operations* 814 784 4% * Continuing operations Page 9
Slide 11: Nutrition
Nutrition Q3-2015 Q3-2014 D% (€ million) YTD-2015 YTD-2014 D% 1,253 1,091 15% Net sales 3,699 3,211 15% 6% Volume 5% 1% Price/Mix 0% 6% FX 9% 2% Other 1% 213 225 -5% EBITDA 616 650 -5% 17.0% 20.6% EBITDA margin 16.7% 20.2% 146 163 -10% EBIT 412 471 -13% Capital employed 5,247 5,034* * year-end 2014
Slide 12: Animal Nutrition & Health
Animal Nutrition & Health Q3-2015 Q2-2014 D% (€ million) YTD-2015 YTD-2014 D% 593 527 13% Net sales 1,739 1,512 15% 12% Organic growth 9% • Volume: Q3 showed very strong volume Vitamin E prices (www.feedinfo.com) growth driven by the premix activities and specialty products in Europe and Latin Ameri
Slide 13: Human Nutrition & Health
Human Nutrition & Health Q3-2015 Q3-2014 D% (€ million) YTD-2015 YTD-2014 D% 464 406 14% Net sales 1,396 1,232 13% 2% Organic growth 0% • Volume: DSM delivered solid volume growth in spite of the continued soft environment in several key market segments. The dietary supplements businesses continued
Slide 14: Performance Materials
Performance Materials Q3-2015 Q3-2014 D% (€ million) YTD-2015 YTD-2014 D% 631 638 -1% Net sales 1,927 1,842 5% -3% Volume 1% -5% Price/Mix -4% 7% FX 8% 0% Other 0% 102 87 17% EBITDA 294 243 21% 16.2% 13.6% EBITDA margin 15.3% 13.2% 69 55 25% EBIT 196 153 28% Capital employed 1,833 1,744* * year-end
Slide 15: Performance Materials - continued
Performance Materials - continued • EBITDA in Performance Materials for the quarter increased by 17% versus Q3 2014. On a structural base, good margin management and efficiency & cost savings programs over recent years contributed positively. The increase in EBITDA was, however, also enhanced by pos
Slide 16: Innovation Center
Innovation Center Q3-2015 Q3-2014 D% (€ million) YTD-2015 YTD-2014 D% 42 40 5% Net sales 115 112 3% -5% Volume -9% -1% Price/Mix -1% 11% FX 13% 0% Other 0% 0 -4 EBITDA -8 -15 -7 -10 EBIT -29 -36 Capital employed* 563 523* * year-end 2014 • Sales: DSM Biomedical continues to operate in a challenging
Slide 17: Corporate Activities Discontinued Operations
Corporate Activities Q3-2015 Q3-2014 (€ million) YTD-2015 YTD-2014 19 25 Net sales 55 75 -28 -27 EBITDA -88 -94 -38 -39 EBIT -121 -129 • EBITDA in Q3 2015 was in line with the average quarterly run-rate as well as Q3 2014 Discontinued Operations Polymer Intermediates and Composite Resins Q3-2015 Q3-
Slide 18: Key joint ventures and associates
Key joint ventures and associates Q3-2015 Q3-2014 D% (€ million) YTD-2015 YTD-2014 D% 103 99 4% DSM Sinochem 332 305 9% EBITDA margin approx. 13% 455 384 18% DPx Holdings* 1,335 601 n.a. EBITDA margin approx. 20% 365 n.a. n.a. ChemicaInvest** 365 n.a. n.a. EBITDA margin approx. 3% * DPx respective p
Slide 19: Cash flow
Cash flow Cash Flow % OWC continuing activities 9M’15 9M’14 (€ million) 30 Cash from operating 382 390 activities Cash from investing 20 -35 -364 activities* Free cash flow from 10 347 26 operations Balance sheet Sept 30 YE 2014 (€ million) 2015 0 Net debt 2,395 2,420 2014 Q1 2014 Q3 2015 Q1 2015 Q3
Slide 20: Overview
Overview • Q3 2015 Operational performance • Business conditions and outlook Page 19
Slide 21: Business Conditions
Business Conditions Animal Nutrition • Stable demand in animal feed markets • Vitamin E prices continue to be under pressure • Large maintenance shutdowns in Q4 Human Nutrition • F&B: continued improved conditions in Europe, NA starting to show some improvements; Asia weakening; South America weak •
Slide 22: 2015 Outlook maintained
2015 Outlook maintained • The volatility in currencies, including the strengthening of the Swiss franc and the US dollar against the Euro, and the recent weakening of the Brazilian real will have a mixed effect on DSM’s 2015 results compared to 2014. Based on current exchange rates and the 2015 hedg
Slide 23: DSM's IR App @your service
DSM’s IR App @your service Download the mobile app at Apple’s App store and Google Play DSM Investor Relations released its Investor Relations App for iPhone, iPad and Android mobile devices. The App is available for free at Apple’s App Store for the iPhone and iPad and at Google Play for Android mo
Slide 24: Bright Science. Brighter Living.