Dsm-firmenich Ag · EURONEXT:DSFIR

Dsm-firmenich — Royal DSM — Investor Day (November 2015)

38 slides from Dsm-firmenich's investor day presentation, Nov 4, 2015

  1. Slide 1: Driving Profitable Growth in Materials

    DSM STRATEGY 2018 Driving Profitable Growth in Materials DIMITRI DE VREEZE - Member of the Managing Board ROYAL DSM CAPITAL MARKETS DAY 4 NOVEMBER 2015 AMSTERDAM

  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 reade

  3. Slide 3: Agenda

    Agenda 1 Strategy 2018 − Cost and capital discipline − Increase growth •2 Business Group Strategies − Engineering Plastics − Dyneema − Resins & Functional Materials −3 Wrap-up Slide 2

  4. Slide 4: Strategy 2010-15: Performance Materials has shown solid financial performance

    Strategy 2010-15: Performance Materials has shown solid financial performance EBITDA margin: >€2.5bn >€350m ~15% 2015 2015 ROCE: ~14% 2015 ~€2.1bn €259m EBITDA margin: 2010 2010 12% ROCE: 10% 2010 Divested Divested ~€0.4bn1 ~€24m1 CAGR ~2.5% per annum EBITDA up almost 50% Strong progress margin & RO

  5. Slide 5: More differentiated approach has led to a more attractive business portfolio

    More differentiated approach in recent years has led to a more attractive business portfolio, with a higher growth and returns profile High Accelerate Functional Materials High Performance PA6 Plastics Solar Compounds Strengthen Biomedical Specialty Coating Dyneema Fiber Market growth PA6 Resins Pol

  6. Slide 6: Strategy 2018: Focus on higher-growth specialty segments

    Strategy 2018: Focus on well-defined, higher-growth specialty segments, while maximizing returns in PA6 Polymers and Powder Coating Resins High Accelerated Functional growth Materials Aspirations 2018 underpinning High-Performance Growth PA6 Plastics Solar Group targets Compounds Biomedical  Annual

  7. Slide 7: Performance Materials expects to grow sales above market growth

    Building upon Strategy 2018, Performance Materials expects to grow sales above market growth1 Overall Performance Engineering Plastics Dyneema Coating Resins Materials 4 4 42 3-4 3 32 2 1-2 1-2 -1 Market DSM Market DSM Market DSM Market DSM Market DSM Market DSM Market DSM Market DSM 2011-15 2016-18

  8. Slide 8: 'Winning segments' selected to profit from enhanced substitution growth

    ‘Winning segments’ selected to profit from enhanced substitution growth Personal Com. Marine High Perf. Sustainable Automotive Electronics Protection & Sport Textiles Coatings (B&C)2 Replace metals & hazardous materials Replace steel/aluminum & aramids Replace solvent-based Growth via end markets an

  9. Slide 9: Performance Materials Strategy 2018: pillars to drive high single-digit EBITDA growth

    Performance Materials Strategy 2018: 2 pillars to drive the high single-digit annual EBITDA growth Increase growth Cost and capital discipline  Accelerated Growth in High-Performance  Implement company-wide savings program in Plastics, Functional Materials and Dyneema support functions and service

  10. Slide 10: Agenda

    Agenda 1 Strategy 2018 − Cost and capital discipline − Increase growth •2 Business Group Strategies − Engineering Plastics − Dyneema − Resins & Functional Materials −3 Wrap-up Slide 9

  11. Slide 11: Engineering Plastics

    Engineering Plastics A global provider of highly specified engineering plastic solutions Slide 10

  12. Slide 12: Accomplishments Strategy 2010-15: Solid growth and strong financial performance

    Accomplishments Strategy 2010-15 Solid growth and strong financial performance  Reduced costs and improved efficiencies through the 2012-14 Financial performance 2010-15 Reduced costs Profit Improvement Program Revenues up ~40% in 5 years  Continued shift towards specialty materials, adding Stanyl

  13. Slide 13: Global Engineering Plastics player with broad range of polyamides and polyesters

    Global Engineering Plastics player with a uniquely broad range of value-added polyamides and polyesters Extensive high-performance plastics portfolio High Accelerated growth High- Growth Performance PA6 Plastics Market growth PEEK Maximize Compounds PA4T returns PEI PA46 PSU PPS LCP PPA PA6 PES TPC

  14. Slide 14: Strategy 2018 for Engineering Plastics translates into clear actions per segment

    Strategy 2018 for Engineering Plastics translates into clear actions per product segment  Cost and efficiency Cost and capital improvements discipline  No large capex  Focus on highly specified  Working capital discipline application development High Performance for global customers in Plastics

  15. Slide 15: Engineering Plastics is uniquely positioned to thrive

    Engineering Plastics is uniquely positioned to thrive from its application knowhow-based relationships and substitution growth Accelerate ‘winning’ segments Strong customer partnerships Sales growth  Further build on strong  Well diversified, global customer position in high-growth base segments i

  16. Slide 16: Strong partnerships in winning segments

    Strong partnerships in winning segments where demand for specialty plastics solutions is growing significantly Accelerate winning segments Strong customer partnerships Automotive Electronics  Weight reduction  Elimination of  Safety hazardous Growth drivers substances  Comfort  Miniaturization

  17. Slide 17: Stricter environmental regulations drive substitution toward lighter materials in Automotive

    Stricter environmental regulations drive further substitution growth towards lighter materials in Automotive Grams CO2/Km (equivalent) 280 260 240 220 CO2 200 Australia 180 requirements in 160 different 140 120 China regions 100 USA 80 Japan 60 Europe 2003 2006 2009 2012 2015 2018 2021 2024 2027 203

  18. Slide 18: New solutions today - BMW high performance at 250°C

    New solutions today - For BMW, application development with Engineering Plastics means high performance at 250°C Stanyl® Diablo delivers performance in the world’s first high-heat plastic air intake manifold  For the i8, BMW was looking for a high-heat thermoplastic solution for its AIM/CAC1 that o

  19. Slide 19: Stanyl ForTii for USB Type-C connectors

    New solutions for today and tomorrow - Stanyl® ForTii™ for USB Type-C connectors offers unparalleled toughness and stiffness for the connector of the future Stanyl® ForTii™ offers best balance of mechanical properties and precision molding  USB is by far the most popular means of connecting periphe

  20. Slide 20: Dyneema

    Dyneema The world’s strongest fiber Slide 19

  21. Slide 21: Accomplishments Strategy 2010-15: Accessed new profitable growth markets

    Accomplishments Strategy 2010-15: Successfully accessed new profitable growth markets offsetting negative effects from absence of vehicle tenders  Reduced costs and improved efficiencies through the 2012-14 Financial performance 2010-15 Reduced costs Profit Improvement Program Revenues up ~4% p.a.1

  22. Slide 22: Dyneema positioned in markets where continuous high performance matters

    As the world’s ‘lightest, strongest fibre’, Dyneema is uniquely positioned in markets where continuous high performance is of utmost importance Current portfolio is well positioned and diversified new High Accelerated growth Growth Polymer Sheets Market growth Maximize returns Dyneema Fiber Fiber So

  23. Slide 23: Strategy 2018 for Dyneema focuses on current premium portfolio

    Strategy 2018 for Dyneema focuses on current premium portfolio while selectively adding new sustainable, innovative products and solutions  Cost and efficiency Cost and capital improvements discipline  No large capex  Focus on development of new  Working capital discipline applications  New pro

  24. Slide 24: Dyneema's technical platforms allow for further growth

    Dyneema’s (new) technical platforms allow for further growth and new technologies and applications Sales growth 41 3-4 -1 Market DSM Market DSM 2011-15 2016-18 1 Excluding Vehicle Protection tenders Slide 23

  25. Slide 25: New applications and extended product offering fuel growth

    New applications and extended product offering in existing markets fuel growth Fiber Solutions Life Protection High Commercial Performance Synthetic Radomes Life Protection Marine & Apparel Chains Protection Textiles Sports  Light-weight, sustainable solutions  Increased (personal) security Growth

  26. Slide 26: Team Giant-Alpecin cycling shorts with Dyneema

    New solutions today – Providing Team Giant-Alpecin riders with protection while meeting critical comfort requirements Cycling shorts reinforced with Dyneema reduce the risk of serious injuries  For every cyclist, the thigh area is a very vulnerable body part  Team Giant-Alpecin and DSM teamed up t

  27. Slide 27: Synthetic rope alternative to steel wire rope

    New solutions for today and tomorrow – Extreme situations require innovative applications that last A light-weight, safe, and reliable alternative to steel wire rope  Together with Samson, Dyneema developed the first synthetic rope for mobile cranes  The rope offers the same load pull and load cha

  28. Slide 28: Resins & Functional Materials

    Resins & Functional Materials Leading the transformation to Sustainable Coatings Slide 27

  29. Slide 29: Accomplishments Strategy 2010-15: Impressive step-up in profitability

    Accomplishments Strategy 2010-15: Impressive step-up in profitability driven by portfolio upgrade and Profit Improvement Program  Significant step-up in margins supported by successful Financial performance 2010-15 Reduced costs implementation of the 2012-14 Profit Improvement Program Revenues up ~

  30. Slide 30: Global coatings producer with well-balanced portfolio in sustainable coatings

    Resins and Functional Materials is a global coatings producer with a well-balanced portfolio in sustainable coatings Extensive portfolio in sustainable specialty coatings High Accelerated growth Functional Func. Materials Growth Mat. Market growth Maximize Specialty returns Specialty Resins Coating

  31. Slide 31: Strategy 2018: Resins & Functional Materials builds on improving earnings

    Strategy 2018: Resins & Functional Materials further builds on improving earnings and sustainable solutions  Cost and efficiency Cost and capital improvements  Grow customer base discipline  No large capex facilitating Fiber-to-Home Functional  Working capital discipline Materials trend  Innova

  32. Slide 32: Resins & Functional Materials to profit from EU recovery and substitution

    Resins & Functional Materials to profit from recovery in EU markets and continued substitution shift towards sustainable coating resins Sales growth Market increasingly shifts away from solvent-based coatings Market DSM Traditional Specialty Resins Specialty Resins solvent- based Traditional solvent

  33. Slide 33: Emissions legislation important driver for shift to sustainable coatings

    Reduction of emissions legislation important driver for shift to sustainable coatings European legislation important driver for shift towards sustainable coating resins  Legislation Volatile EU-27 NMVOC emission trends Organic Compound (‘VOC’) emission Solvent Emission Directive (SED) 1999/13/EC re

  34. Slide 34: DSM and Praxis sustainable decorative paints

    New solutions today – DSM and Praxis introduce the new standard in sustainable decorative paints First and important step in creating a more sustainable value chain  Praxis, one of the largest Dutch hardware store- chains, was looking for a sustainable solution for its premium range of private labe

  35. Slide 35: Optical fiber coatings for 4G and 5G networks

    New solutions for tomorrow – Functional Solutions’ optical fiber coatings ensure greater signal reliability and field performance for 4G and 5G networks Functional Solutions optical fiber coatings in ideal, protected position to profit from 4G and 5G roll-out  China and India are speeding up invest

  36. Slide 36: Agenda

    Agenda 1 Strategy 2018 − Cost and capital discipline − Increase growth •2 Business Group Strategies − Engineering Plastics − Dyneema − Resins & Functional Materials −3 Wrap-up Slide 35

  37. Slide 37: Driving profitable growth in Performance Materials

    Driving profitable growth in Performance Materials Value creation 2016-18 will be driven by:  EBITDA & ROCE growth  Via higher growth at lower costs, with strengthened organization Slide 36

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