Dsm-firmenich Ag · EURONEXT:DSFIR
Dsm-firmenich — Royal DSM — Q3 2019 Earnings Presentation
22 slides from Dsm-firmenich's earnings presentation, November 2019
Slide 1: Presentation to Investors: First nine months 2019 results
Presentation to Investors First nine months 2019 results ROYAL DSM NUTRITION HEALTH SUSTAINABLE LIVING
Slide 2: Quote from the CEO Feike Sijbesma
Quote from the CEO Feike Sijbesma “I am pleased to report again a good nine-month performance, together with a solid third quarter. In the quarter, Nutrition delivered a good performance with 4% organic growth and Adjusted EBITDA up 12%, despite some softness in Human Nutrition. Materials experience
Slide 3: Highlights first nine months 2019
Highlights first nine months 2019 ▪ DSM reports good first nine months, with a solid performance in Q3 ▪ Results compared to Underlying business in first nine months 2018: ✓ Group sales +3%, Adjusted EBITDA up 11% (including 3% from IFRS 16) ✓ Nutrition: organic sales +4%, Adjusted EBITDA up 13% (in
Slide 4: Highlights Q3 2019
Highlights Q3 2019 ▪ DSM reports a solid Q3 ▪ Results compared to Underlying business in Q3 2018: ✓ Group sales +3%, Adjusted EBITDA up 9% (including 3% impact from IFRS 16) ✓ Nutrition: organic sales +4%, Adjusted EBITDA up 12% (including 3% impact from IFRS 16) ✓ Materials: organic sales –7% (-3%
Slide 5: Key financials Q3 2019 YTD
Key financials Q3 2019 YTD Comparison with Q3 2018 YTD Underlying business in € million Jan - Sept Jan – Sept % Change 2019 2018 Underlying1 Temp. Total Underlying1 FX & Underlying1 Temporary Total business vitamin Group Organic ‘other’1 total vitamin Group effect growth growth effect Sales 6,858 6,
Slide 6: Key financials Q3 2019
Key financials Q3 2019 Comparison with Q3 2018 Underlying business in € million Q3 2019 Q3 2018 % Change Underlying1 Temp. Total Underlying1 FX & Underlying1 Temporary Total business vitamin Group Organic ‘other’1 total vitamin Group effect growth growth effect Sales 2,290 2,215 50 2,265 0% 3% 3% -2
Slide 7: Key financials
Key financials Comparison with Q3 2018 YTD including temporary vitamin effect January - September in € million, including IFRS 16 impact, 2019 2018 % Change Q3 2019 Q3 2018 % Change where applicable Sales 6,858 7,059 -3% 2,290 2,265 1% Adjusted EBITDA 1,288 1,452 -11% 426 406 5% Adjusted EBITDA marg
Slide 8: Nutrition | Key financials
Nutrition | Key financials January - September in € million (estimated) 2019 2018 Q3 2019 Q3 2018 Sales 4,573 4,278 7% 1,544 1,438 7% Adjusted EBITDA1 956 847 13% 317 283 12% ▪ ‘Underlying’ business is defined as the sales and Adjusted EBITDA margin (%) 1 20.9% 19.8% 20.5% 19.7% ROCE (%) 14.6% 15.1%
Slide 9: Nutrition | Business overview
Nutrition | Business overview Sales bridge | Q3 2018 YTD to Q3 2019 YTD (€m) ▪ Nine months 2019 sales: Nutrition realized 4% organic growth against a strong +9% in same period last year. Total sales were 7% higher compared to first nine months 2018 including 1% from the consolidation of Andre Pectin
Slide 10: Animal Nutrition & Health | Sales overview
Animal Nutrition & Health | Sales overview Sales bridge | Q3 2018 YTD to Q3 2019 YTD (€m) ▪ Nine months 2019 sales: Animal Nutrition reported 4% organic growth, against a strong 12% in the same period last year. Volumes were up 2% and prices +2%. Total sales were 6% higher compared to first nine mon
Slide 11: Human Nutrition & Health | Sales overview
Human Nutrition & Health | Sales overview Sales bridge | Q3 2018 YTD to Q3 2019 YTD (€m) ▪ Nine months 2019 sales: Organic growth was 1% against a tough comparison of +7% organic growth in the first nine months of 2018. Volumes were up 3% and prices were down 2%. Total sales were up 5% as sales grow
Slide 12: Other Nutrition activities
Other Nutrition activities ▪ DSM’s other nutrition activities which include Food Specialties, Personal Care, Aroma Ingredients and Hydrocolloids, delivered a good performance with 7% organic sales growth in the first nine months 2019, with 5% organic growth in Q3. Food Specialties enjoyed good growt
Slide 13: Materials | Sales overview
Materials | Sales overview Sales bridge | Q3 2018 YTD to Q3 2019 YTD (€m) ▪ Nine months 2019 sales Organic growth was down 7%, with volumes down 5% and prices minus 2%., while margins were slightly up Total sales were down 5% as a result of a 2% positive exchange rate effect, which was largely US do
Slide 14: Materials | Key financials
Materials | Key financials January - September in € million 2019 2018 % Change Q3 2019 Q3 2018 % Change Sales 2,114 2,215 -5% 687 723 -5% 1 Adjusted EBITDA 391 393 0% 129 132 -2% 1 Adjusted EBITDA margin (%) 18.5% 17.7% 18.8% 18.3% Adjusted EBIT 285 298 -4% 92 99 -7% Capital Employed 2,028 1,890 Ave
Slide 15: Innovation center | Key financials
Innovation center | Key financials January - September in € million 2019 2018 % Change Q3 2019 Q3 2018 % Change Sales 140 118 19% 50 43 16% 1 Adjusted EBITDA 16 1 5 1 Adjusted EBIT -11 -16 -5 -4 Capital Employed 621 587 1 Including IFRS 16 impact of €0 million in Q3 2019 and €1 million in the first
Slide 16: Corporate activities | Key financials
Corporate activities | Key financials 1 Including IFRS 16 impact of €0 million in Q3 2019 and €1 million in the first nine months of 2019 ▪ Nine months 2019 Adjusted EBITDA slightly increased compared to previous year, predominantly driven by the adoption of IFRS 16 partly offset by somewhat higher
Slide 17: Cash Flow and Working Capital | overview
Cash Flow and Working Capital | overview Condensed Cash Flow and (Operating) Working Capital Average Total Working Capital % January - September 30.0 27.8 in € million 2019 2018 Q3 2019 Q3 2018 24.9 Cash provided by Operating Activities 941 933 434 430 21.1 - Cash from APM adjustments 37 66 14 25 20
Slide 18: Net debt and ROCE | overview
Net debt and ROCE | overview Net debt ROCE (underlying business including IFRS 16) 1,000 30.0 852 21.5 19.5 15.1 14.6 500 15.0 13.6 12.7 113 0 - End of Year 2018 End of Q3 2019 Total DSM Nutrition Materials ▪ Net debt was €852 million, up from €113 million at the end of 2018, mainly driven by the in
Slide 19: Outlook 2019
Outlook 2019 ▪ DSM maintains its full year outlook: DSM 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 Underlying Adjusted Net Operating Free Cash Flow
Slide 20: Share Buy Back program
Share Buy Back program ▪ On 1 April 2019, DSM commenced its ordinary share repurchase program of an aggregate market value of €1 billion, with the intention to reduce its issued capital, as first announced on 14 February 2019. This program is in addition to the regular repurchase programs to cover c
Slide 21: Safe harbor
Safe harbor This presentation may contain forward-looking statements with respect to DSM’s future performance and position. Such statements are based on current expectations, estimates and projections of DSM and information currently available to the company. DSM cautions readers that such statement
Slide 22: Bright Science. Brighter Living.