Dsm-firmenich Ag · EURONEXT:DSFIR

Dsm-firmenich — Royal DSM — Shareholder Meeting (May 2019)

32 slides from Dsm-firmenich's shareholder meeting presentation, May 8, 2019

  1. Slide 1: Annual Results 2018

    Annual Results 2018 Feike Sijbesma, CEO & Chairman Managing Board Royal DSM Annual General Meeting, Heerlen (NL) - 8 May 2019 NUTRITION HEALTH SUSTAINABLE LIVING

  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 rea

  3. Slide 3: Agenda

    Agenda 1 Introduction - attractive portfolio 2 2018 - Highlights of another successful year 3 Strategy 2018 - successfully delivered 4 Strategy 2021 Growth & Value – Purpose led, Performance driven 5 First quarter 2019 – A good start to the year Page 2

  4. Slide 4: Royal DSM @ a glance – (2018 numbers)

    Royal DSM @ a glance – (2018 numbers) Innovation  Sales: ~ €10bn (adj. EBITDA: ~ €1.5/1.8bn) Center Animal Nutrition  Global: ~ 45% sales from emerging economies & Health (EU-35% - Americas-35% - Asia/ROW-30%) Specialty  Innovation: ~ 20% of sales (avg. last 5 years) Materials  R&D investments:

  5. Slide 5: DSM global workforce

    DSM global workforce ~60% Employees outside Europe (compared with 37% in 2006) ~23,000 Employees incl. JVs/Associates Europe > 9,000 North America > 3,000 Asia > 6,000 Africa: 73 employees Latin America > 2,000 ROW > 250 Page 4

  6. Slide 6: Successful transformation future-proofing DSM

    Successful transformation future-proofing DSM Coal mining (Petro)chemicals Nutrition, Health & Sustainable Living 2018 1902 Page 5

  7. Slide 7: DSM offers products & solutions to a wide range of end-markets

    DSM offers products & solutions to a wide range of end-markets Human Nutrition (Food) Food & Packaging Beverages Materials Other 5% 11% 11% Early life 5% nutrition Building & Construction 6% 12% Dietary 7% Supplements Automotive 4% 5% Personal Care Electrical & Electronics 34% Animal Feed Animal Nut

  8. Slide 8: Nutrition's attractive business model

    Nutrition’s attractive business model Broad, global portfolio in food & feed ingredients and solutions Global Products Local Solutions Regions N-AM L-AM EMEA Asia ROW Cultures Vitamins Probiotics Nutra- Market Segments Natural ceuticals & Preservatives Specialties Colorants Yeast Carotenoids (extrac

  9. Slide 9: Materials capturing opportunities in Sustainable Living

    Materials capturing opportunities in Sustainable Living Silent transformation towards higher-growth, higher-margin, specialty applications Page 8

  10. Slide 10: Agenda

    Agenda 1 Introduction - attractive portfolio 2 2018 - Highlights of another successful year 3 Strategy 2018 - successfully delivered 4 Strategy 2021 Growth & Value – Purpose led, Performance driven 5 First quarter 2019 – A good start to the year Page 9

  11. Slide 11: For DSM 2018 was a very successful year in almost every way

    For DSM 2018 was a very successful year in almost every way Highlights Hard work and engagement of our employees delivered very strong results (pride) Financially: well ahead of our strategic targets, creating significant value in all our businesses In sustainability we outperformed our aspirations

  12. Slide 12: PROFIT: we delivered well ahead of our strategic targets

    PROFIT: we delivered well ahead of our strategic targets Creating significant value in all our businesses Adj.EBITDA Sales underlying ROCE underlying underlying Net Debt €8,852m 13.3% up 6% organically €1,532m up 100bps €113m up 6% Total Sales Total ROCE Total Adj. EBITDA versus €742m end of €9,276m

  13. Slide 13: All businesses contributed to DSM achieving its financial targets

    All businesses contributed to DSMs achieving its financial targets Delivering continued above market-growth Nutrition Materials underlying Innovation 43% Sales to Sales up 5% high-growth Sales up 7% Organically Sales at 19% Organically economies In line with our Adj. EBITDA Adj. EBITDA ambition In l

  14. Slide 14: We outperformed our aspirations towards our PLANET

    We outperformed our aspirations towards our PLANET Further embedding sustainability across all of our business activities ~8% 41% 1.4% 22million m 3 Absolute Purchased Energy Efficiency Water Greenhouse Gas renewable Improvement Consumption reduction vs 2016 electricity year-on-year (down from 23 mi

  15. Slide 15: A high performance company & culture

    A high performance company & culture Our success is built on engagement, commitment & capabilities of our PEOPLE 19% 76% 0.33 Female executives 62% Employee Brighter Living Safety Frequency (25% by 2020) Engagement Solutions favorable score Recordable index 60% (<0.25% by 2021) (>75% by 2021) Under-

  16. Slide 16: Recognized by the benchmarks for ESG performance

    Recognized by the benchmarks for ESG performance Leading the way in integrating sustainability in business and operations For the 3rd year on Top-rating in ESG Chemicals Industry Constituent of A- for Climate Industry Group leader Fortune Magazine’s index in our Industry Leader in FTSE4GOOD index B-

  17. Slide 17: Agenda

    Agenda 1 Introduction - attractive portfolio 2 2018 - Highlights of another successful year 3 Strategy 2018 - successfully delivered 4 Strategy 2021 Growth & Value – Purpose led, Performance driven 5 First quarter 2019 – A good start to the year Page 16

  18. Slide 18: Successfully completed Strategy 2018: key financial targets

    Successfully completed Strategy 2018 DSM outperformed on its key financial targets Page 17

  19. Slide 19: Successfully completed Strategy 2018: growth ambitions

    Successfully completed Strategy 2018 DSM outperformed on its growth ambitions Page 18

  20. Slide 20: Significantly outperformed financial markets

    Successfully completed Strategy 2018 Significantly outperformed financial markets Almost 40% in dividend/share since start Strategy 2018 Shareprice* more than doubled since start Strategy 2018 (until 30 April’19) € 2.50 2.30   € 2.25 € 2.00 1.85 1.75 € 1.75 1.65 1.65 1.65 1.50 € 1.50 1.45 € 1.25 €

  21. Slide 21: Agenda

    Agenda 1 Introduction - attractive portfolio 2 2018 - Highlights of another successful year 3 Strategy 2018 - successfully delivered 4 Strategy 2021 Growth & Value – Purpose led, Performance driven 5 First quarter 2019 – A good start to the year Page 20

  22. Slide 22: The World is changing …

    The World is changing ….. Good financial returns will Doing financially well go together with purpose can Doing well Focus on profit go together with doing well for the world or Doing good Improving the world 10 years ago Today 10 years from now Start DSM’s new/next DSM’s purpose approach is fully a

  23. Slide 23: Doing well, by doing good …. DSM does

    Doing well, by doing good …. DSM does As from 2007: Share price tripled; TSR: ~335% (incl dividend reinvested), GHG reduction -90% Total value creation (shareprice + dividend): >€15bn 20 Today 15 €102 10 5 May €35 0 2007 2019 GHG Emissions (million tonnes) Market Value (euro billion) Page 22

  24. Slide 24: Purpose drives growth opportunities

    Purpose drives growth opportunities Strategy 2021: Growth & Value – Purpose led, Performance driven Our purpose is to create brighter lives for all With our Employees With our Customers and With our Shareholders For Society Suppliers Science-based competences in Growth in Nutrition, Health and focus

  25. Slide 25: Two ambitious targets for profit growth and cash generation

    Two ambitious targets for profit growth and cash generation ….. For the period 2019-2021 2021 Targets Ambitions underpinning Group targets High single-digit 1. Sales Above-market sales growth (~5%) for percentage annual Group, Nutrition and Materials Adj. EBITDA increase 2. Adj. EBITDA margin Nutrit

  26. Slide 26: Veramaris

    Veramaris Omega-3 Fatty Acids from Natural Algae  Joint venture with Evonik  Disruptive new algae-based technology for producing Omega-3 EPA and DHA  For use in fish feed  Conserves natural biodiversity of our oceans  Initial facility in Blair, with ~€150-200m sales potential per year Page 25

  27. Slide 27: Clean Cow

    Clean Cow Reducing Methane  ~14.5% of all Greenhouse gas emissions comes from livestock (~65% from dairy and beef cows)  Feed supplement reducing the methane emission of dairy cows with ~30%  Attractive market potential of ~€1-2bn with launch after 2019 Page 26

  28. Slide 28: Fermentative Stevia

    Fermentative Stevia A sweat deal for sugar reduction  More scalable, more sustainable and low cost-in-use, zero-calorie solution  Market for high-intensity sweeteners produced by fermentation is expected to exceed €3 billion by 2025.  JV Avansya with Cargill is well positioned to secure a signifi

  29. Slide 29: Niaga

    Niaga Reducing 4.5bn m2 of carpet waste every year  Niaga® Technology: a 100% recyclable carpet, produced with up to 90% less energy  Collaboration with carpet producers progressing successful  Niaga technology also introduced to redesign mattresses of 100% material recovery, reuse and recyclabil

  30. Slide 30: Agenda

    Agenda 1 Introduction - attractive portfolio 2 2018 - Highlights of another successful year 3 Strategy 2018 - successfully delivered 4 Strategy 2021 Growth & Value – Purpose led, Performance driven 5 First quarter 2019 – A good start to the year Page 29

  31. Slide 31: Q1 2019: Highlights

    Q1 2019: Highlights  DSM reports a good start to the year  Results compared to Underlying business in Q1 2018:  Group sales up 3%, Adjusted EBITDA up 10% to €412m (up 14% to €424m including IFRS 16 impact of €12m)  Nutrition: organic sales +3%, Adjusted EBITDA up 11% to €309m (up 14% to €316m in

  32. Slide 32: Bright Science. Brighter Living.

Royal DSM — Shareholder Meeting (May 2019) on 6ix