Slide 1: Presentation to investors
Presentation to investors 9M 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 first nine months 2018
Highlights first nine months 2018 ▪ DSM reports a very good Q3, contributing to a strong first nine months ▪ Strong organic sales growth in underlying business at 8% ▪ Underlying Adjusted EBITDA growth at 7%, despite significant negative FX ▪ ROCE of underlying business at 13.6%, up 130 bps ▪ Total
Slide 4: Highlights Q3 2018
Highlights Q3 2018 ▪ DSM reports a very good Q3 ▪ Continued good underlying organic sales growth at 5% ▪ Underlying Adjusted EBITDA growth at 7%, despite the negative FX impact ▪ Nutrition (underlying business): 7% organic sales growth and 10% Adjusted EBITDA growth ▪ Materials: 3% organic sales gro
Slide 5: Quote from CEO Feike Sijbesma
Quote from CEO Feike Sijbesma “We are delighted to report another very good quarter and are confident that we can achieve our full year outlook. The continued organic sales and Adjusted EBITDA growth rates in the underlying business position us well for a strong year which would once again exceed ou
Slide 6: Outlook 2018
Outlook 2018 DSM confirms its full year outlook 2018 and expects an Adjusted EBITDA growth of approximately 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 negative foreign exchange effect on A
Slide 7: Key Q3 2018 YTD figures and indicators
Key Q3 2018 YTD figures and indicators1 in € million January – September 2018 Jan-Sept % Change Underlying1 Temporary Total 2017 Underlying1 FX & Underlying1 Temporary Total business vitamin effect Group Reported organic growth ‘other’1 total growth vitamin effect Group Sales 6,644 415 7,059 6,456 8
Slide 8: Key Q3 2018 figures and indicators
Key Q3 2018 figures and indicators1 in € million Q3 2018 Q3 % Change Underlying1 Temporary Total 2017 Underlying1 FX & Underlying1 Temporary Total business vitamin effect Group Reported organic growth ‘other’1 total growth vitamin effect Group Sales 2,215 50 2,265 2,136 5% -1% 4% 2% 6% Nutrition 1,4
Slide 9: Group | Key financials (incl. temporary vitamin effect)
Group | Key financials (incl. temporary vitamin effect) January - September in € million 2018 2017 % Change Q3 2018 Q3 2017 % Change Sales 7.059 6.456 9% 2.265 2.136 6% Adjusted EBITDA 1.452 1.086 34% 406 365 11% Adjusted EBITDA margin 20,6% 16,8% 17,9% 17,1% ROCE (%) 1 18,4% 12,3% 2 Effective tax r
Slide 10: Nutrition | Key financials
Nutrition | Key financials January - September ▪ Nutrition continues to deliver on its in € million (estimated) 2018 2017 % Change Q3 2018 Q3 2017 % Change above-market growth ambition through Underlying Sales 4.278 4.151 3% 1.438 1.373 5% an expanding portfolio of higher-value business Adjusted EBI
Slide 11: Nutrition | Business overview
Nutrition | Business overview Sales bridge | Q3 2017 to Q3 2018 YTD Sales bridge | Q3 2017 to Q3 2018 ▪ Nine months 2018 organic sales: Nutrition realized 9% organic sales growth in the underlying business, with strong volumes, up 5%, as well as 4% price growth, supported by good conditions across m
Slide 12: Animal nutrition & health | Sales overview
Animal nutrition & health | Sales overview Sales bridge | Q3 2017 to Q3 2018 YTD Sales bridge | Q3 2017 to Q3 2018 ▪ Nine months 2018 organic sales: Animal Nutrition delivered a strong year to date performance, with 6% volume growth in the underlying business. This was achieved against a tough prior
Slide 13: Human Nutrition & Health | Sales overview
Human Nutrition & Health | Sales overview Sales bridge | Q3 2017 to Q3 2018 YTD Sales bridge | Q3 2017 to Q3 2018 ▪ Nine months 2018 organic sales: Human Nutrition is well on track to deliver a strong year. All regions and segments continued to perform well with an especially strong growth in premix
Slide 14: Materials | Sales overview
Materials| Sales overview Sales bridge | Q3 2017 to Q3 2018 YTD Sales bridge | Q3 2017 to Q3 2018 ▪ Nine months 2018 organic sales: Overall for the first nine months, Materials reported an organic sales growth of 7% with 3% higher volumes. Prices were 4% higher, mainly reflecting commercial pricing
Slide 15: Materials | Sales overview (cont'd)
Materials| Sales overview (cont’d) ▪ DSM Engineering Plastics delivered a very strong sales performance in the first nine months of the year across all regions. Towards the end of Q3 automotive demand in China softened and automotive sales in Europe were temporary impacted by the implementation of t
Slide 16: Materials | Key financials
Materials| Key financials January - September in € million 2018 2017 % Change Q3 2018 Q3 2017 % Change Sales 2,215 2,132 4% 723 706 2% Adjusted EBITDA 393 369 7% 132 128 3% Adjusted EBITDA margin (%) 17.7% 17.3% 18.3% 18.1% Adjusted EBIT 298 275 8% 99 98 1% Capital Employed 1,890 1,811 Average Capit
Slide 17: Innovation center | Key financials
Innovation center| Key financials January - September in € million 2018 2017 % Change Q3 2018 Q3 2017 % Change Sales 118 126 -6% 43 42 2% Adjusted EBITDA 1 5 1 4 Adjusted EBIT -16 -29 -4 -17 Capital Employed 587 552 ▪ First nine months 2018 sales were lower predominantly due to negative foreign exch
Slide 18: Corporate activities | Key financials
Corporate activities| Key financials January - September in € million 2018 2017 Q3 2018 Q3 2017 Sales 33 47 11 15 Adjusted EBITDA -79 -74 -25 -25 Adjusted EBIT -1000 -104 -32 -34 ▪ Nine months 2018 Adjusted EBITDA was slightly below the first nine month of 2017, mainly due to higher insurance claims
Slide 19: Cash flow and Working Capital | Overview
Cash flow and Working Capital | Overview Cash flow, Capital Expenditures and Financing Average Total Working Capital % 40% January - September Jan-Sep 2017 Jan-Sep 2018 in € million 2018 2017 Q3 2018 Q3 2017 30% 27,3% 24,9% Cash provided by Operating Activities 933 619 430 290 18,6% 18,5% Operating
Slide 20: Net debt and ROCE | Overview
Net debt and ROCE | Overview Net debt ROCE (estimation of underlying business) Jan-Sep 2017 Jan-Sep 2018 3.000 25% 21,5% 20,2% 20% 2.000 13,6% 14,1% 15,1% 15% 12,3% 10% 1.000 742 680 5% 0 0% FY 2017 30-sep-18 Total DSM Nutrition Materials ▪ Net debt was €680 million, down from €831 million at the en
Slide 21: Bright Science. Brighter Living.