Slide 1: Presentation to investors Q1 2018 results
Presentation to investors Q1 2018 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 2018
Highlights Q1 2018 Full Q1 2018 results are in line with the previously announced preliminary figures for Q1 2018 on 12 April 2018 § Continued strong organic sales growth in underlying business estimated at 11% § Adjusted EBITDA growth of underlying business estimated at 8%, despite significant FX h
Slide 4: Quote from CEO Feike Sijbesma
Quote from CEO Feike Sijbesma § “We are very pleased that the strong underlying performance of our business continues, with growth well above market. In addition, we are currently benefitting from substantially higher prices in some vitamins due to exceptional supply disruptions in the industry, whi
Slide 5: Outlook 2018
Outlook 2018 § DSM confirms its increased full year outlook 2018, as announced on 12 April 2018, and expects an Adjusted EBITDA growth towards 25% and a related higher ROCE growth. This is based on: – a low double-digit Adjusted EBITDA growth in the underlying business at constant currencies, – a ne
Slide 6: Group | Key figures and indicators
Group | Key figures and indicators1 in € million Q1 2018 Q1 2017 % Change Underlying2 Temporary2 Total Reported Underlying2 FX & Underlying2 Temporary2 Total business vitamin effect Group organic growth ‘other’2 total growth vitamin effect Group Sales 2,215 220 2,435 2,159 11% -8% 3% 10% 13% Nutriti
Slide 7: Group | Key figures and indicators – including temporary vitamin effect
Group | Key figures and indicators – including temporary vitamin effect in € million Q1 2018 Q1 2017 % Change Sales 2,435 2,159 13% Adjusted EBITDA 538 345 56% Adjusted EBITDA margin 22.1% 16.0% ROCE (%) 2 21.8% 11.3% Adjusted net profit4 337 163 107% Net profit - Total DSM 4 331 149 122% Adjusted n
Slide 8: Nutrition | Key financials
Nutrition | Key financials Underlying Underlying Q1 2018 Q1 2017 % Change § Nutrition continues to outperform its Strategy business in € million (estimated) 2018 aspirations with ongoing strong momentum in Sales 1,430 1,398 2% Adjusted EBITDA 277 257 8% its underlying business, delivering clearly ab
Slide 9: Nutrition | overview – underlying business
Nutrition | overview – underlying business Sales bridge (underlying business) | Q1 2017 to Q1 2018 § Q1 2018 organic sales growth in the underlying Nutrition business was an estimated 12%, driven by continued strong volume growth of 8%, well above market – Higher prices in the quarter of 4% partly o
Slide 10: Animal Nutrition & Health | Sales overview – underlying business
Animal Nutrition & Health | Sales overview – underlying business § Q1 2018 organic sales growth in the underlying business Sales bridge (underlying business) | Q1 2017 to Q1 2018 was an estimated 18% § Volumes were up 13% mainly due to very strong premix sales – All regions delivered strong underlyi
Slide 11: Human Nutrition & Health | Sales overview – underlying business
Human Nutrition & Health | Sales overview – underlying business § Q1 2018 organic sales growth in the underlying business Sales bridge (underlying business) | Q1 2017 to Q1 2018 was an estimated 8% § Volumes were up 5%, with good growth across all regions and market segments, well above the market.
Slide 12: Materials | Sales overview
Materials | Sales overview § Materials delivered another very strong quarter, continuing Sales bridge | Q1 2017 to Q1 2018 its excellent progress since the start of Strategy 2018 § Q1 2018 organic sales growth was 11% resulting from 7% higher volumes and 4% higher prices, driven by the implementatio
Slide 13: Materials | Key financials
Materials | Key financials in € million Q1 2018 Q1 2017 % Change Sales 738 701 5% Adjusted EBITDA 126 113 12% Adjusted EBITDA margin (%) 17.1% 16.1% Adjusted EBIT 95 81 17% Capital Employed 1,824 1,831 Average Capital Employed 1,805 1,819 ROCE (%) 21.0% 17.9% Total Working Capital 367 332 Average To
Slide 14: Innovation | Key financials
Innovation | Key financials in € million Q1 2018 Q1 2017 % Change Sales 36 43 -16% Adjusted EBITDA -1 1 Adjusted EBIT -6 -5 Capital Employed 553 602 § Q1 2018 sales were impacted by significant negative foreign currency effects as several businesses are predominantly in US dollars – Volumes were up,
Slide 15: Corporate Activities | Key financials
Corporate Activities | Key financials in € million Q1 2018 Q1 2017 Sales 11 17 Adjusted EBITDA -29 -26 Adjusted EBIT -36 -39 § Q1 2018 Adjusted EBITDA was slightly below Q1 2017, mainly due to higher insurance claims at DSM’s captive insurance company Page 14
Slide 16: Key joint ventures/associates | Financial overview
Key joint ventures/associates | Financial overview in € million, based on 100% Q1 2018 Q1 2017 % Change DSM Sinochem Sales 121 110 10% Adjusted EBITDA% 17% 17% ChemicaInvest Sales 532 535 -1% Adjusted EBITDA% 10% 8% § DSM Sinochem Pharmaceuticals (50% DSM) showed improved results compared to Q1 2017
Slide 17: Joint ventures/associates | Net result contribution
Joint ventures/associates | Net result contribution in € million Q1 2018 Q1 2017 DSM Sinochem (50%) 4 3 Patheon1 0 9 ChemicaInvest (35%) 2 7 0 Other associates / joint ventures -6 -4 Total before APM adjustments 5 8 APM adjustments 0 -2 Share of the profit of 5 6 associates/joint ventures 1. DSM com
Slide 18: Cash flow and Working Capital | Overview
Cash flow and Working Capital | Overview Cash Flow, Capital Expenditures and Financing Average Total Working Capital % 40% Q1 2017 Q1 2018 in € million Q1 2018 Q1 2017 Cash provided by Operating Activities 310 196 30% 27.2% Operating Working Capital 2,117 2,057 22.8% Operating Working Capital as % o
Slide 19: Net debt and ROCE | Overview
Net debt and ROCE | Overview Net debt ROCE (underlying business) 3,000 25% Q1 2017 Q1 2018 21.0% 20% 17.9% 15.3% 2,000 13.3% 13.3% 15% 11.3% 10% 1,000 742 579 5% 0 0% FY 2017 Q1 2018 Total DSM Nutrition Materials § Net debt was €579m vs. €742m at the end of 2017 § ROCE of underlying business up 200b
Slide 20: Dividend proposal to AGM: Increase dividend to €1.85 per ordinary share
Dividend proposal to AGM: Increase dividend to €1.85 per ordinary share § Dividend policy “stable and preferably rising” Dividend per ordinary DSM share - € § Reflecting its confidence in the financial performance of the company, DSM proposes to increase the dividend (Interim) dividend per share § P
Slide 21: ANNEX: Group | Net sales development – including temporary vitamin effect
ANNEX: Group | Net sales development – including temporary vitamin effect in € million Q1 2018 Q1 2017 % Change Volume Price/mix FX Other Sales 2,435 2,159 13% 8% 13% -9% 1% Nutrition 1,650 1,398 18% 9% 19% -11% 1% Materials 738 701 5% 7% 4% -6% 0% Innovation Center 36 43 Corporate Activities 11 17
Slide 22: ANNEX: Group | EBITDA development – including temporary vitamin effect
ANNEX: Group | EBITDA development – including temporary vitamin effect in € million Q1 2018 Q1 2017 % Change Sales 2,435 2,159 13% Adjusted EBITDA 538 345 56% Nutrition 442 257 72% Materials 126 113 12% Innovation Center -1 1 Corporate Activities -29 -26 1. Continuing operations Page 21
Slide 23: DSM Capital Markets Day 2018
== SAVE THE DATE == DSM Capital Markets Day 2018 20 June 2018
Slide 24: BRIGHT SCIENCE. BRIGHTER LIVING
BRIGHT SCIENCE. BRIGHTER LIVING