Dsm-firmenich Ag · EURONEXT:DSFIR
Dsm-firmenich — Royal DSM — H1 2018 Earnings Presentation
28 slides from Dsm-firmenich's earnings presentation, 2018
Slide 1: Presentation to investors H1 2018 results
Presentation to investors H1 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 H1 2018
Highlights H1 2018 ▪ DSM reports a very good H1 with strong performance across all businesses ▪ Continued strong organic sales growth in underlying business estimated at 10% ▪ Adjusted EBITDA growth of underlying business estimated at 7%, despite significant FX headwind ▪ ROCE of underlying business
Slide 4: Highlights Q2 2018
Highlights Q2 2018 ▪ DSM reports a very good Q2 with strong performance across all businesses ▪ Continued strong organic sales growth in underlying business estimated at 8% ▪ Adjusted EBITDA growth of underlying business estimated at 6%, despite significant FX headwind ▪ Nutrition: an estimated 8% u
Slide 5: Quote from CEO Feike Sijbesma
Quote from CEO Feike Sijbesma ▪ “Our ongoing focus on driving above market growth while pursuing efficiency initiatives and maintaining capital discipline, continues to drive our results. Following a strong start to the year, we are very pleased to report very good H1 results, with organic growth ab
Slide 6: Outlook 2018
Outlook 2018 ▪ DSM confirms its full year outlook 2018, as provided at Q1 2018, and expects an Adjusted EBITDA growth towards 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 ex
Slide 7: Key H1 2018 figures and indicators
Key H1 2018 figures and indicators1 in € million H1 2018 H1 2017 % Change Underlying2 Temporary2 Total Reported Underlying2 FX & Underlying2 Temporary2 Total business vitamin effect Group organic growth ‘other’2 total growth vitamin effect Group Sales 4,429 365 4,794 4,320 10% -7% 3% 8% 11% Nutritio
Slide 8: Key Q2 2018 figures and indicators
Key Q2 2018 figures and indicators1 in € million Q2 2018 Q2 2017 % Change Underlying2 Temporary2 Total Reported Underlying2 FX & Underlying2 Temporary2 Total business vitamin effect Group organic growth ‘other’2 total growth vitamin effect Group Sales 2,214 145 2,359 2,161 8% -6% 2% 7% 9% Nutrition
Slide 9: Group | Key financials (incl. temporary vitamin effect)
Group | Key financials (incl. temporary vitamin effect) in € million H1 2018 H1 2017 % Change Q2 2018 Q2 2017 % Change Sales 4,794 4,320 11% 2,359 2,161 9% Adjusted EBITDA 1,046 721 45% 508 376 35% Adjusted EBITDA margin 21.8% 16.7% 21.5% 17.4% ROCE (%) 1 20.8% 12.2% Effective tax rate 2 18.0% 18.0%
Slide 10: Nutrition | Key financials
Nutrition | Key financials ▪ Nutrition continues to deliver on its Underlying in € million (estimated) H1 2018 H1 2017 % Change Q2 2018 Q2 2017 % Change above-market growth ambition business Sales 2,840 2,778 2% 1,410 1,380 2% through an expanding portfolio of Adjusted EBITDA 564 528 7% 287 271 6% h
Slide 11: Nutrition | Overview (underlying business)
Nutrition | Overview (underlying business) Sales bridge | H1 2017 to H1 2018 Sales bridge | Q2 2017 to Q2 2018 4% 4% -9% -7% 6% 2,840 1,410 1% 4% 1% 2,778 1,380 H1 Volume Price/mix FX Other H1 Q2 Volume Price/mix FX Other Q2 2017 2018 2017 2018 ▪ H1 2018 organic sales growth in the underlying Nutrit
Slide 12: Animal Nutrition & Health | Sales overview (underlying business)
Animal Nutrition & Health | Sales overview (underlying business) Sales bridge | H1 2017 to H1 2018 Sales bridge | Q2 2017 to Q2 2018 6% -11% 6% 1,340 -9% 648 8% 3% 1,263 629 3% 3% H1 2017 Volume Price/mix FX Other H1 2018 Q2 2017 Volume Price/mix FX Other Q2 2018 ▪ Animal Nutrition continues to bene
Slide 13: Human Nutrition & Health | Sales overview (underlying business)
Human Nutrition & Health | Sales overview (underlying business) Sales bridge | H1 2017 to H1 2018 Sales bridge | Q2 2017 to Q2 2018 3% 4% -7% -9% 5% 5% 514 1,019 0% 1,010 507 0% H1 2017 Volume Price/mix FX Other H1 2018 Q2 2017 Volume Price/mix FX Other Q2 2018 ▪ Human Nutrition continued to deliver
Slide 14: Materials | Sales overview
Materials | Sales overview Sales bridge | H1 2017 to H1 2018 Sales bridge | Q2 2017 to Q2 2018 3% 2% -3% -4% 1,492 754 0% 0% 6% 5% 1,426 725 H1 2017 Volume Price/mix FX Other H1 2018 Q2 2017 Volume Price/mix FX Other Q2 2018 ▪ Materials continues its ongoing ‘silent transformation’, focusing strongl
Slide 15: Materials | Sales overview (cont’d)
Materials | Sales overview (cont’d) ▪ DSM Engineering Plastics delivered a very strong sales performance throughout H1, benefitting from its continued efforts to shift its portfolio towards higher-value, sustainable, specialty materials for the electrics & electronics and automotive industries. Stro
Slide 16: Materials | Key financials
Materials | Key financials in € million H1 2018 H1 2017 % Change Q2 2018 Q2 2017 % Change Sales 1,492 1,426 5% 754 725 4% Adjusted EBITDA 261 241 8% 135 128 5% Adjusted EBITDA margin (%) 17.5% 16.9% 17.9% 17.7% Adjusted EBIT 199 177 12% 104 96 8% Capital Employed 1,901 1,807 Average Capital Employed
Slide 17: Innovation | Key financials
Innovation | Key financials in € million H1 2018 H1 2017 % Change Q2 2018 Q2 2017 % Change Sales 75 84 -11% 39 41 -5% Adjusted EBITDA 0 1 1 0 Adjusted EBIT -12 -12 -6 -7 Capital Employed 589 592 ▪ The Innovation Center ensures that DSM has a robust innovation and growth pipeline. It serves as a cent
Slide 18: Corporate Activities | Key financials
Corporate Activities | Key financials in € million H1 2018 H1 2017 Q2 2018 Q2 2017 Sales 22 32 11 15 Adjusted EBITDA -54 -49 -25 -23 Adjusted EBIT -680 -70 -32 -31 ▪ H1 2018 Adjusted EBITDA was slightly below H1 2017, mainly due to higher insurance claims at DSM’s captive insurance company Page 17
Slide 19: Key joint ventures/associates | Financial overview
Key joint ventures/associates | Financial overview in € million, based on 100% H1 2018 H1 2017 % Change Q2 2018 Q2 2017 % Change DSM Sinochem Sales 239 217 10% 118 107 10% Adjusted EBITDA% 16% 15% 15% 14% ChemicaInvest Sales 1,015 996 2% 483 461 5% Adjusted EBITDA% 9% 8% 9% 7% ▪ On 17 May 2018 Fibra
Slide 20: Joint ventures/associates | Net result contribution
Joint ventures/associates | Net result contribution in € million H1 2018 H1 2017 Q2 2018 Q2 2017 DSM Sinochem (50%) 7 4 3 1 Patheon1 0 7 0 -2 ChemicaInvest (35%) 2 12 0 5 0 Other associates / joint ventures -11 -14 -5 -10 Total before APM adjustments 8 -3 3 -11 APM adjustments -1 2 -1 4 Share of the
Slide 21: Cash flow and Working Capital | Overview
Cash flow and Working Capital | Overview Cash flow, Capital Expenditures and Financing Average Total Working Capital % 40% in € million H1 2018 H1 2017 Q2 2018 Q2 2017 H1 2017 H1 2018 Cash provided by Operating Activities 503 329 193 133 Operating Working Capital 2,347 2,062 30% 27.6% Operating Work
Slide 22: Net debt and ROCE | Overview
Net debt and ROCE | Overview Net debt ROCE (estimation of underlying business) 3,000 25% H1 2017 H1 2018 21.6% 19.5% 20% 15.4% 2,000 13.8% 13.9% 15% 12.2% 10% 1,000 742 831 5% 0 0% FY 2017 30-Jun-18 Total DSM Nutrition Materials ▪ Net debt was €831m vs. €742m at the end of 2017 ▪ ROCE of underlying
Slide 23: Interim dividend proposal
Interim dividend proposal | DSM will pay an interim dividend of €0.77 per ordinary share in line with its proposal to increase 2018 dividend with ~25% ▪ Maintaining dividend policy: Stable and preferably rising Dividend per ordinary DSM share (€) ▪ Proposal to increase ordinary dividend for 2018 wit
Slide 24: Annex
ANNEX Page 23 DS M RIGHT SCIENCE, BRIGHTER LIVING.
Slide 25: DSM strategy update: Growth & Value – Purpose led, Performance driven
DSM strategy update: Growth & Value – Purpose led, Performance driven DSM’s key competences … == Click here for all strategy documents == 2021 Targets: … provide growth opportunities in the focus-domains … … creating high single-digit % a growth annual increase Future-proof company … Adj. EBITDA Nut
Slide 26: Group | Net sales development (incl. temporary vitamin effect)
Group | Net sales development (incl. temporary vitamin effect) in € million H1 2018 H1 2017 % Change Volume Price/mix FX Other Sales 4,794 4,320 11% 5% 13% -7% 0% Nutrition 3,205 2,778 15% 5% 18% -9% 1% Materials 1,492 1,426 5% 6% 3% -4% 0% Innovation Center 75 84 Corporate Activities 22 32 in € mil
Slide 27: Group | EBITDA development (incl. temporary vitamin effect)
Group | EBITDA development (incl. temporary vitamin effect) in € million H1 2018 H1 2017 % Change Q2 2018 Q2 2017 % Change Sales 4,794 4,320 11% 2,359 2,161 9% Adjusted EBITDA 1,046 721 45% 508 376 35% Nutrition 839 528 59% 397 271 46% Materials 261 241 8% 135 128 5% Innovation Center 0 1 1 0 Corpor
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