Dsm-firmenich Ag · EURONEXT:DSFIR
Dsm-firmenich — H1 2023 Earnings Presentation
27 slides from Dsm-firmenich's earnings presentation, Aug 2, 2023
Slide 1: Presentation to Investors H1 2023 Results
Presentation to Investors H1 2023 Results August 2, 2023
Slide 2: Co-CEOs statement
Co-CEOs statement Dimitri de Vreeze Geraldine Matchett Co-CEO & COO Co-CEO & CFO “We are well advanced in the integration phase of the merger and excited by the positive response of customers to our enhanced business proposition, giving us even greater confidence in the delivery of our synergy targe
Slide 3: Innovators in health, nutrition and beauty
Innovators in health, nutrition and beauty ~30,000 150+ years €12+ bn passionate, talented, of combined scientific combined revenue and diverse people in discovery and our global team innovation heritage 3
Slide 4: Four high-performing and complementary businesses
Four high-performing and complementary businesses Perfumery Taste, Texture Health, Nutrition Animal Nutrition & Beauty (P&B) & Health (TTH) & Care (HNC) & Health (ANH) 30% 25% 19% 26% % of H1 2023 pro forma revenues 4
Slide 5: H1 2023 highlights
H1 2023 highlights • DSM and Firmenich merger successfully completed on May 8, 2023 • Integration progressing in-line with plan, with initial benefits of synergies already being delivered • Perfumery & Beauty and Taste, Texture & Health delivered good performances in a volatile macro-economic enviro
Slide 6: Financial highlights on a pro forma basis
Financial highlights on a pro forma basis1 Perfumery & Beauty and Taste, Texture & Health delivered good performances. Animal Nutrition & Health was significantly impacted by low vitamin prices, which also affected, but to a lesser extent, Health Nutrition & Care The first half Adj. EBITDA reflects
Slide 7: Outlook for FY 2023
Outlook for FY 2023 dsm-firmenich expects on a pro forma basis: Within this outlook, the company estimates a negative vitamin effect Adj. EBITDA 2023 on full year Adj. EBITDA of about €400 million and a negative foreign €1,800-1,900m exchange effect of about €100 million 7
Slide 8: Perfumery & Beauty (P&B)
Perfumery & Beauty (P&B)1 H1 Organic H1 Adj. H1 Adj. EBITDA Q2 Organic Sales Growth EBITDA margin Sales Growth 0% +4% +80bps -2% €1,875m €379m 20.2% €903m • Flat organic growth, with mid-single digit higher pricing, to counter higher input costs, offset by lower volumes in Ingredients • Good perform
Slide 9: Innovations in Perfume & Beauty
Innovations in Perfume & Beauty EcoScent Compass® Next Sylvergreen™ innovation program SkinPositive™ Biome Generation Enhanced sustainability data and Sustainable transformation of Fragrances that are gentle greater traceability via ingredients palette to the skin digitalization 9
Slide 10: Taste, Texture & Health (TTH)
Taste, Texture & Health (TTH)1 H1 Organic H1 Adj. H1 Adj. EBITDA Q2 Organic Sales Growth EBITDA margin Sales Growth +1% +7% +120bps -2% €1,533m €289m 18.9% €761m • Mid-single digit price increase almost fully offset by lower volumes • Taste delivered a strong performance, more than offsetting a decl
Slide 11: Innovations in Taste, Texture & Health
Innovations in Taste, Texture & Health TasteGEM®, ModulaSENSE®, SmartProteins® 3D Masking Eversweet® and TastePRINT® Solutions to address specific Advanced sugar reduction Removing calories from off-notes in meat alternatives solutions with sustainable stevia consumers’ diets 11
Slide 12: Health, Nutrition & Care (HNC)
Health, Nutrition & Care (HNC)1 H1 Organic H1 Adj. H1 Adj. EBITDA Q2 Organic Sales Growth EBITDA margin Sales Growth -5% -18% -300 bps -7% €1,144m €220m 19.2% €562m • High-single digit volume decline from continued destocking across various market segments, as well as stepping away from some low-pri
Slide 13: Innovations in Health, Nutrition & Care
Innovations in Health, Nutrition & Care Estroven Complete+ AZO d-Mannose Adare Biome Ashwagandha Gummies offering additional Pioneer in the development and Addresses menopausal symptoms protection to manage women’s manufacturing of postbiotics and symptoms such as stress, everyday urinary health Acq
Slide 14: Animal Nutrition & Health (ANH)
Animal Nutrition & Health (ANH)1 H1 Organic H1 Adj. H1 Adj. EBITDA Q2 Organic Sales Growth EBITDA margin Sales Growth -14% -73% -1170 bps -16% €1,571m €85m 5.4% €786m • Pricing down mid-single digit, volumes down high-single digit, due to oversupply in a weak market, with soft feed demand particular
Slide 15: Innovations in Animal Nutrition & Health
Innovations in Animal Nutrition & Health Bovaer® Veramaris® Hiphorius, Proact 360,and Good progress, with successful Strong demand for sustainable Balancius®, innovations, all global pilot projects and long- algae-derived omega-3 for improving nutrient utilization and term agreements. First producti
Slide 16: Other financial highlights H1 2023 on a pro forma basis
Other financial highlights H1 2023 on a pro forma basis1 € €0.87 5.6% €3,321m €285m €1,831m Core Adj. Earnings Core Return on Capital Total Working Capital, Adj. Gross Operating Net Debt end of H1, (IFRS per Share Employed down from 27.4% of sales (vs H1 2022: Free Cash Flow impacted definition) is
Slide 17: Sustainability – integrating two industry leaders - Planet
Sustainability – integrating two industry leaders - Planet GHG GHG GHG GHG scope 1+2 scope 3 Purchased scope 1&2 scope 3 Purchased emissions emissions renewable emissions emissions renewable (Absolute) (Intensity) electricity (Absolute) (Absolute) electricity reduction reduction 100% by 50% 8% 100%
Slide 18: Sustainability – integrating two industry leaders - Proud People
Sustainability – integrating two industry leaders - Proud People Safety & Health Employee engagement Sustainable Portfolio Steering New Safety, Health, dsm-firmenich remains committed to addressing concerns, ensuring dsm-firmenich is currently evaluating its Environment and transparency, and support
Slide 19: We bring progress to life
Our purpose We bring progress to life
Slide 20: dsm-firmenich on one page
dsm-firmenich on one page We bring progress to life Essential Desirable Sustainable NEED WANT MUST Together, with our customers Shape the Be a force Own the future for good outcome 20
Slide 21: Synergies - driving substantial value creation with low integration risk
Synergies - driving substantial value creation with low integration risk Revenue Synergy Breakdown Substantial Value Creation ~€500m Sales Revenue 60% Taste, Texture & Health synergies ~50 – 60% 25% Health, Nutrition & Care ~40 – 50% Cost synergies 15% Perfumery & Beauty Total run-rate ~€350m synerg
Slide 22: Vitamin transformation program: acceleration of strategic actions
Vitamin transformation program: acceleration of strategic actions dsm-firmenich will accelerate actions to increase the earnings quality by reducing its exposure to vitamins and resulting earnings volatility Prioritize Organization Asset Cash Program Adaptation New Vitamin Working Vitamin of ANH sep
Slide 23: dsm-firmenich is confident it will realize its mid-term financial targets
dsm-firmenich is confident it will realize its mid-term financial targets Mid-single digit percentage of organic sales growth moving to Sales Mid-Term a 5-7% range, supported by revenue synergies and innovations Financial Objectives Adjusted EBITDA Margin moving to the 22-23% range, supported by EBI
Slide 24: Annex
[This slide has been added to the presentation to investors on August 7, 2023] Annex 24
Slide 25: H2 Cash flow and Net Debt projection based on adj. EBITDA outlook guidance
H2 Cash flow and Net Debt projection based on adj. EBITDA outlook guidance (August 2, 2023) [This slide has been added to the presentation to investors on August 7, 2023] IFRS Net debt end of H1 2023 €1.8bn1 Adj. Gross Operating Free Cash Flow €0.55-0.6bn Operating cash generation (Adj. EBITDA, OWC,
Slide 26: Forward-looking statements disclaimer
This presentation may contain forward-looking statements with respect to dsm-firmenich’s future performance and position. Such statements are based on current expectations, estimates and projections of dsm-firmenich and information currently available to the company. dsm-firmenich cautions readers t
Slide 27: We bring progress to life
We bring progress to life™ dsm-firmenich eee