Dsm-firmenich Ag · EURONEXT:DSFIR
Dsm-firmenich — Royal DSM — Investor Day (September 2013)
37 slides from Dsm-firmenich's investor day presentation, Sep 26, 2013
Slide 1: DSM in motion: driving focused growth
Feike Sijbesma CEO / Chairman Managing Board DSM in motion: driving focused growth DSM Capital Markets Day 2013 Page
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
Slide 3: Overview
Overview • What we have achieved • Strategy & drivers remain attractive • Preparing for the next phase of growth Page
Slide 4: DSM in motion: driving focused growth
DSM in motion: driving focused growth Page
Slide 5: Strong strategic progress
Thi s im Strong strategic progress • Divestments of base chemicals activities Significant transformation with total €1.5bn sales and €0.2bn (Sales Breakdown %) EBITDA (2007) at good multiples (total divestment proceeds ~€1.2bn) • Portfolio significantly transformed: €2.4bn in value enhancing acquisi
Slide 6: Ambitious targets set in 2010
Ambitious targets set in 2010 Profitability targets 2013 2013 expectation EBITDA € 1.4 - 1.6bn Towards € 1.4bn ROCE >15% 9-10% Sales targets 2015 2013 H1 realization Organic sales growth 5% - 7% annually 1% China sales from US$ 1.5bn to >US$ 3bn US$ 0.8bn High Growth Economies sales from ~32% toward
Slide 7: Shift to higher quality earnings
Thi s im Shift to higher quality earnings H1 EBITDA (€ m) Sales by end-market* 800 Polymer Other Food & Beverages Intermediates 600 14% 11% Infant nutrition Performance Building & 4% Materials Construction 7% Dietary Supp. 7% 400 Pharma Auto- 2% Personal motive 7% Care Nutrition Textiles 7% 200 22%
Slide 8: On track with sustainability aspirations
Thi s im On track with sustainability aspirations Sustainability aspirations 2011 – 2015 H1 2013 Dow Jones Top ranking (“SAM Gold Class”) Gold class Sustainability Index Eco+ (innovation) at least 80% of pipeline is ECO+ 93% Eco+ (running business) from ~34% towards 50% 41% 20% improvement in 2020,
Slide 9: Near term focus
Thi s im Near term focus • Nutrition: delivering good organic growth and integration of acquisitions, realizing full synergy potential • Pharma: partnership for DSM Pharmaceutical Products • Performance Materials: improving profitability • Polymer Intermediates: reducing exposure to merchant caprola
Slide 10: Overview
Overview • What we have achieved • Strategy & drivers remain attractive • Preparing for the next phase of growth Page
Slide 11: Portfolio well aligned with global megatrends
Thi s im Portfolio well aligned with global megatrends DSM global trend Globalization Alignment of DSM’s BGs/ BUs focus with needs Rise of newly industrialized countries (“2-speed global economy”) DNP HNH / PC (e.g. vitamins, Demographics lipids, UV filters) Global shifts Global population growth to
Slide 12: Our growth drivers are compelling
Thi s im Our growth drivers are compelling High Growth Innovation Sustainability Acquisitions & Economies Partnerships From From From From ‘reaching out’ ‘building the responsibility portfolio machine’ transformation to to to to becoming doubling the business driver growth truly global output
Slide 13: The new DSM has become truly global
Thi s im The new DSM has become truly global Increase in % of sales to High Growth Economies 2013 Q2 Sales by destination North America High Growth 20% Economies 40% 40% 34% 32% Western 6% 22% Europe Rest 2005 2010 2013 Q2 of World CSD • DSM has broadened its international presence, capturing greate
Slide 14: HGE strong enabler of growth ambitions
Thi s im HGE strong enabler of growth ambitions • Expand presence in High Growth Economies, including Africa Sales to HGE: about 45% by 2015 • Cultivate synergies of the 2011-2012 acquisitions which provide an enlarged product/service pipeline for HGE • Continue to strengthen local R&D, innovation a
Slide 15: Key themes driving sustainable innovations
Thi s im Key themes driving sustainable innovations Food & Nutrition Security Health More than 9 billion people in 2050 Sustainable Manufacturing/ Energy Raw Materials
Slide 16: Innovation underpins further growth & profit
Thi s im Innovation underpins further growth & profit 3000 Innovation Sales (as % of total sales) 2000 Target 20% 18% 18% 1000 16% 0 2010 2011 2012 2013e 2014e 2015e DSM well on track to deliver on its 20% Innovation sales target by 2015 Innovation strongly contributes to DSM’s sales growth and EBIT
Slide 17: Further intensifying (open) innovation
Further intensifying (open) innovation Running Discovery Concept Incubation Expansion Business New themes Biomed. Stevia Actamax LS EcoPaxx AR Coating / Dyneema® HyD® Diamond Next Gen Solar Biofuels Human Biomed BluCure Drug Bio- New themes Delivery CleanCow chemicals MS Radical innovation (“Red box
Slide 18: Three exciting growth platforms established
Thi s im Three exciting growth platforms established DSM Biomedical Emerging Business Areas ambition for 2020: Innovative materials that deliver more € 1bn in sales at high advanced clinical procedures and EBITDA margin improved patient outcomes DSMBio-based DSM Bio-basedProducts Products&&Services
Slide 19: EBA - Biomedical materials
Thi s im EBA - Biomedical materials Main achievements • Kensey Nash acquisition & integration completed, boosting sales of the EBA • Good progresss with Dyneema® Purity and PTG activities • Actamax JV with DuPont established Way forward • Be the leading development partner for biomaterials and regen
Slide 20: EBA - Bio-based Products and Services
Thi s im EBA - Bio-based Products and Services Strategy • Demonstrate technologies through strategic investments and partnerships • License integrated processes to bio-based entrepreneurs • Sell bioconversion technology (yeasts and enzymes) Reverdia – Bio-succinic acid / bio-based chemicals • Access
Slide 21: New EBA – Solar - Advanced Surfaces
Thi s im New EBA – Solar - Advanced Surfaces Main achievements • Increased production capacity of anti-reflective KhepriCoat® for solar panel cover glass • Acquisition of SolarExcel leading to next generation efficiency boost through textured surfaces • Markets for solar panels growing 10-15%/yr; Kh
Slide 22: Sustainability as a strong business driver
Thi s im Sustainability as a strong business driver ECO+ sales % of DSM’s total sales 50 25 0 2010 2011 2012 2015 target • Share of ECO+ solutions in running portfolio increased from ~34% (CSD 2010) to 43% in 2012 • ECO+ solutions offer clear ecological benefits • Data from DSM Engineering Plastics
Slide 23: ECO+ as business driver in Animal Nutrition
Thi s im ECO+ as business driver in Animal Nutrition Feed 20kg/day • Livestock are responsible for methane emission, a GHG that causes global warming • DSM is working on “CleanCow”, a feed additive(s) solution: 1. to reduce methane by 25-30% in vivo 2. with the potential for better performance (incr
Slide 24: People+ as business driver in Human Nutrition
Thi s im People+ as business driver in Human Nutrition • ~200 million women world- wide suffer from osteoporosis • Worldwide, an osteoporotic fracture occurs every 3 seconds, a vertebral fracture every 22 seconds • Hip and vertebral fractures have “cost-intense” medical implications • Optimized vita
Slide 25: Acquisitions: attractive shareholder value
Acquisitions: attractive shareholder value Acquisition EV NPV • DSM acquired for €2.8bn in total, at an average EV/EBITDA multiple < 9 Martek € 730m € 1.4bn • Exciting synergies achieved at ‘Martek’: – Martek sales grew by ~15%/year since acquisition – Combination of Martek and ONC (algae-based and
Slide 26: DSM’s organizational roadmap for development
DSM’s organizational roadmap for development Mission Values Safety Bright Science. Brighter Living.™ Sustainability People-Planet-Profit Code of ONE DSM Culture Agenda Business Conduct Leadership Model External Accountability Orientation for Performance Inclusion & Collaboration Diversity with Speed
Slide 27: Exploring new roads to our customers
Exploring new roads to our customers • Use of Social Media: LinkedIn Twitter Facebook Google+ Youtube+Flickr • Explore B2C capabilities and increase brand value: New business models enablers to unlock new markets Page
Slide 28: Overview
Overview • What we have achieved • Strategy & drivers remain attractive • Preparing for the next phase of growth Page
Slide 29: Updated 2015 targets
Thi s im Updated 2015 targets Profit targets 2015 • EBITDA margin (%) 14% - 15% • ROCE 11% - 12% Sales target 2015 • Organic sales growth 5%-7% annually • China sales towards US$ 3bn • High Growth Economies sales about 45% of total sales • Innovation sales 20% of total sales • ECO+ sales towards 50%
Slide 30: Nutrition: continued value growth
Thi s im Nutrition: continued value growth Targets: • EBITDA margin 20% - 23% • Sales growth GDP+ 2% Key focus until 2015: • Drive continued organic growth: • Macro trends • Unique business model (with a broad, deep and global portfolio) • Additional focus on HGEs • Expand in B2C / i-Health • Select
Slide 31: Unique business model: global & local capabilities
Unique business model: global & local capabilities FROM Actives Forms Premix TO Active Access & Forms Solutions Ingredients insights GLOBAL PRODUCER + LOCAL SOLUTION PROVIDER Broad, global Maximum Premixes: from channel- Proprietary access to Portfolio of Actives: Differentiation through to- market
Slide 32: Performance Materials: Upgrade portfolio
Thi s im Performance Materials: Upgrade portfolio Via differentiated strategy: • Accelerate: Accelerate growth in highly innovative markets to fully benefit from megatrends • Strengthen: Combine sustainable innovation sales growth with margin optimization programs • Restructure: Composite Resins
Slide 33: Drivers to improve performance
Thi s im Drivers to improve performance Improve performance by upgrading the portfolio, leveraging 3 drivers: 1. Megatrends 2. Differentiated strategies to capture PIP profitable growth 3. Profit Improvement Program Strategy Targets Performance Materials Cluster: Megatrends • EBITDA margin 13% - 15%
Slide 34: Pharma & Polymer Intermediates
Thi s im Pharma & Polymer Intermediates Pharma Polymer Intermediates Key focus until 2015: Key focus until 2015: • For anti-infectives business • Explore opportunities to reduce the • Continue to strengthen the core exposure to the merchant business caprolactam markets • Continue to upgrade the port
Slide 35: Preparing for the next phase of growth
Preparing for the next phase of growth For the period 2013 – 2015, we will strongly focus on: 1) Completing the strategic actions set in 2010 2) Improving operational performance to align returns and margins profile with transformed business portfolio This will mean: 1) Continued value growth in Nut
Slide 36: Contact
Contact: DSM Investor Relations P.O. Box 6500, 6401 JH Heerlen, The Netherlands (+31) 45 578 2864 e-mail: investor.relations@dsm.com internet: www.dsm.com visiting address: Het Overloon 1, Heerlen, The Netherlands Page
Slide 37: Disclaimer
DISCLAIMER This document 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. Examples of forward-looking statem