Dsm-firmenich Ag · EURONEXT:DSFIR
Dsm-firmenich — Royal DSM — Investor Presentation (September 2021)
28 slides from Dsm-firmenich's investor presentation, Sep 14, 2021
Slide 1: DSM accelerates its purpose-led, performance-driven strategic journey
DSM accelerates its purpose-led, performance- driven strategic journey Geraldine Matchett | Co-CEO Dimitri de Vreeze | Co-CEO 14 September 2021
Slide 2: DSM accelerates its purpose-led, performance-driven strategic journey
DSM accelerates its purpose-led, performance-driven strategic journey DSM will be a fully Global food systems face Addressing these food focused Health, DSM is multiple challenges. DSM system challenges offer Nutrition & Bioscience reviewing strategic has the capability and exciting new market compa
Slide 3: Growing population and multiple food system challenges
With a growing global population, the world is facing multiple systemic and interconnected food system challenges that impact the health and wellbeing of people, animals, and the planet 3
Slide 4: Global food systems face multiple systemic interconnected challenges
Global food systems face multiple systemic interconnected challenges NH3 (Hidden) Hunger and Emissions from livestock Inequality malnutrition Green House Gasses (e.g. N 2O methane), nitrogen, ammonia, Farmers not able to generate CH4 PO4 phosphorus a fair and stable income in Diet-related illnesses,
Slide 5: Increased awareness of the critical role of food, supported by science & technology
Increased awareness of the critical role of food, supported by the rapid developments in science & technology Trends and societal challenges Bioscience & technology breakthroughs Consumer Society Environment Biotechnology Data & Precision & breakthroughs Digital Personalization Market opportunity fo
Slide 6: DSM has the capability and responsibility to make a meaningful impact
DSM has the capability and therefore the responsibility to make a meaningful impact on the global food systems, while this also creates exciting new market opportunities This way we are staying true to our purpose of creating brighter lives for all 6
Slide 7: More than 150 years of deep scientific heritage, with biotech facilities
More than 150 years of deep scientific heritage, with biotech facilities around the world • DSM is active in the major groups of microbial technologies, with bacteria, yeasts, fungi and microalgae • Close to 50% of DSM’s current sales of nutritional ingredients is produced out of biobased or natural
Slide 8: Enhanced leadership in Health, Nutrition & Bioscience through high quality M&A
Enhanced leadership in Health, Nutrition & Bioscience through high quality M&A 2011 2012 2013 2014 2015 2017 2018 2019 2020 2021 • Strengthened bioscience position by adding a/o algae & fungi-based fermentation • Added new product categories, building the most comprehensive portfolio of nutritional
Slide 9: DSM has a rich innovation pipeline, predominantly bioscience-based
DSM has a rich innovation pipeline, predominantly bioscience- based 9
Slide 10: DSM has created a unique business model
DSM has created a unique business model Precision & Personalization Digitization & Bioscience as a know-how multiplier Local Solutions Global Products Global network offering Science, Scale, Quality local (customized) solutions 10
Slide 11: DSM will exclusively focus on Health, Nutrition & Bioscience
DSM is well positioned to make a meaningful impact on the food system transformation, and to capture the exciting growth opportunities Therefore, DSM will exclusively focus on Health, Nutrition & Bioscience 11
Slide 12: Accelerate to a fully focused Health, Nutrition & Bioscience company
Accelerate to a fully focused Health, Nutrition & Bioscience company • Materials businesses managed largely on a standalone basis; reviewing strategic options, including a possible change of ownership • New simplified Health, Nutrition & Bioscience organization through: – Creation of 3 Business Grou
Slide 13: DSM will realign its global organizational set up & reporting
DSM will realign its global organizational set up & reporting Today 1 January 2022 DSM Group DSM Group Health, Animal Innovation Food & Nutrition Materials Nutrition & Nutrition & Materials Center Beverage Care Health Other Nutritional Protective Protective Innovation Innovation Innovation Nutrition
Slide 14: Three BGs created with clear end-market orientation
Three BGs created with clear end-market orientation Healthy diets for all Keeping the world’s Radically more through nutritious, growing population sustainable animal delicious and healthy farming sustainable solutions Food & Beverage Health, Nutrition & Care Animal Nutrition & Health €1.2bn* €2.3bn
Slide 15: Food & Beverage (F&B)
Food & Beverage (F&B) Healthy diets for all through nutritious, delicious and sustainable solutions Sales Baking, Plant-based, €1.2bn* Dairy confectionary Savory Beverages sugar reduction Pet 30% 15% 20% 20% 5% 10% DSM offering broad range of ingredients … … holding a strong market position … … in a
Slide 16: The opportunity for F&B
The opportunity for F&B Serving a growing global population with healthy nutrition with the right taste and texture, sustainably produced Key trends Offering new opportunities … … for which DSM is uniquely positioned Consumer awareness of health and • F&B companies seek new product • Ability to part
Slide 17: Health, Nutrition & Care (HNC)
Health, Nutrition & Care (HNC) Keeping the world’s growing population healthy Sales Nutritional Early Life Dietary Pharma/ Medical Personal Care Biomedical €2.3bn Nutrition improvement for the Supplements Nutrition & Aroma Solutions most vulnerable 20% 5% 35% 15% 20% 5% DSM offering broad range of i
Slide 18: The opportunity for HNC
The opportunity for HNC Population growth & need for preventative and affordable nutrition and health drive growth Key trends Offering new opportunities … … for which DSM is uniquely positioned Increasing consumer focus on health and • Ingredients and solutions for improving • Broadest science-backe
Slide 19: Animal Nutrition & Health (ANH)
Animal Nutrition & Health (ANH) Global population growth & need for radically more sustainable animal farming drive sales growth Sales €3.3bn Poultry Swine Ruminants Aqua 45% 25% 20% 10% DSM offering broad range of ingredients … … holding a strong market position … … in attractive markets Split by i
Slide 20: The opportunity for ANH
The opportunity for ANH Productivity & sustainability drive specialty feed ingredients Key trends Offering new opportunities … … for which DSM is uniquely positioned Professionalization of farming and ensuring • Digital: • Sustell®, Verax, Erber Diagnostics (Romer farmers can earn a living ― Precisi
Slide 21: Taking responsibility for our footprint, people and food system commitments
We will underpin our HNB journey by taking responsibility for our own footprint and people, and by taking care for the world through courageous food system commitments By doing so, we will build a sustainable growth company 21
Slide 22: Building a growth company that delivers long term, performance driven profitable growth
Building a growth company that delivers long term, performance driven profitable growth Food systems face huge DSM uniquely positioned This creates long-term Building a growth company environmental and societal and has capabilities purpose-led positive impact that delivers long-term, challenges and
Slide 23: Taking full responsibility for our own footprint and people
Taking full responsibility for our OWN footprint and people Sector Leader Top ranking A for Climate A- for Water DSM top ranked in leading ESG-ratings 23
Slide 24: Accelerated our route to Net Zero by 2050
Accelerated our route to Net Zero by 2050 DSM is committed to achieve Net Zero GHG emissions across operations and value chains by 2050 Net- 50% • Validated science-based 2030 targets on Green House Gas emission reduction (scope 1&2) increased to 50% versus Zero Scope 1&2 absolute emissions reductio
Slide 25: Making positive impact on food systems
Making positive impact on food systems Contributing to the achievement of the UN Sustainable Development Goals Health for People Health for Planet Healthy Livelihoods Our ambitions Our ambitions Our ambitions • Support affordable, accessible, aspirational • Reduce greenhouse gas, ammonia and phospho
Slide 26: We are building a growth company that delivers long-term, performance-driven profitable growth
We are building a growth company that delivers long- term, performance-driven profitable growth Ambitious mid-term profit targets: Adj. EBITDA DSM Nutrition (€m) Mid-single digit % organic sales growth Adj. EBITDA margins >20% High-single digit % annual adjusted 822 931 1053 1117 1250 1338 EBITDA gr
Slide 27: We are building a growth company that creates brighter lives for all
We are building a growth company that creates brighter lives for all
Slide 28: 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