company presentation: a short introduction to dsm (2017) · pdf file• dsm is a global...
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A short introduction to DSM (2017)
The global science-based company active inhealth, nutrition and materials
Our purpose is to create brighter lives forpeople today and generations to come
We connect our unique competences in LifeSciences and Materials Sciences to createsolutions that nourish, protect and improveperformance
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Mission
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Chemical synthesis &biotechnology
Energy, chemistry &polymer technology
Biotechnology
Hoffman La Roche’sVitamins (1930s)
DSM (1902)
Gist-Brocades (1869)
Life Sciences
Materials Sciences
History based on science & innovation
Vitamins & MineralsOmega’s & Carotenoids
Premixes food & feedEnzymes, Cultures & Yeasts
NutraceuticalsPharmaceuticals
High Performance PlasticsCoating Resins
Functional MaterialsSuper strong fibers
Biomedical materialsBio-plastics
Advanced solarCellulosic bioethanol
Food
Materials
PersonalCare
Feed
GreenEnergy
DSM at a glance (2016)
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Sales*
€7,920m
Global*presence
~21,000employeesworldwide
Listed atEuronext NYSE
in 25 yearsShare price
six fold
• DSM is a global sciences based company active in health, nutrition andmaterials
• DSM delivers innovative solutions that nourish, protect and improveperformance in global markets such as food and dietary supplements, personalcare, feed, medical devices, automotive, paints, electrical & electronics, lifeprotection, alternative energy and bio-based materials
Sustainabilityleader
Top rankingDow Jones
SustainabilityIndex
* Excluding 2016 pro-forma and pro-rata (annualized) sales (€1,445m) & number of employees (ultimo 2016) of non-consolidatedAssociates & Joint Ventures (for sales this is mainly Patheon, DSM Sinochem Pharmaceuticals and ChemicaInvest)
Active in Health, Nutrition and Materials
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• Leading supplier of nutritional ingredients (including vitamins, carotenoids,omega’s, food/feed enzymes, cultures, yeasts, nutraceuticals) for the feed,food and personal care industries
• Leading supplier of sustainable high performance materials for theautomotive, electrical & electronics and building & construction industries
• Recognized as top innovator active in biomedical materials, advancedbiofuels, bio-based chemicals and advanced surfaces for solar systems
Health Nutrition Materials
15%
6%
11%
4%
31%
5%7%
6%8%
6%
Key markets
Food &Beverages
Electrical & Electronics
Automotive
Building &Construction
OtherInfantnutrition
DietarySupplements
Animal Feed
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PersonalCare
(Food)Packaging
DSM offers products & solutions to a wide range of markets
DairyRTE mealsSoups / Sauces / SpreadsWine-Beer-Fruit drinks
Materialssciences
Lifesciences
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North America
> 3,000
Europe
> 9,000
Asia
> 6,000
RoW
> 250
Latin America
> 2,000
2%
12%
12%6%
29%
10%
3%
23%
3%
JapanIndiaChinaW-Europe
Eastern Europe
Rest of AsiaLatin AmericaNorth America
Rest of the World
Net sales by destination (%)Global workforce (FTE)
56% employees outside Europe (2016) 65% sales outside Europe (2016)(37% - 2006*) (48% - 2006*)
JV’s
~ 5,000
€
* As reported in 2006 Annual Report / 2006 Triple P report (not restated)
DSM has become a true global company
Higher quality earnings & dividends
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Dividend per ordinary share(€)
Significant portfolio transformationProportion of DSM sales (%)
Stable preferably rising dividend for DSM’s shareholders
Petrochemicals
Energy
EngineeringPlastic products
Curver
Base Chemicals& Materials
Others
Pharma
Polymer Interm. &Composite Resins
Petrochemicals
Energy
EngineeringPlastic products
Base Chemicals& Materials
Others
BaseChemicals &
Materials
Energy
Others
Others
Pharma
Bulk chems
Materials
Nutrition
Materials
Nutrition
1995 2000 2005 2010 2016
Innovation
1,451,50
1,65 1,65 1,651,75
1,00
1,25
1,50
1,75
2,00
2011 2012 2013 2014 2015 2016
Dividend per share
60
80
100
120
140
Nov
-15
Dec-
15
Jan-
16
Feb-
16
Mar
-16
Apr-
16
May
-16
Jun-
16
Jul-
16
Aug-
16
Sep-
16
Oct
-16
Nov
-16
Dec-
16
Jan-
17
Feb-
17
Mar
-17
Apr-
17
DSM DSM Peer groupAEX DJS Chem.
Strong performance reflected in higher dividend and share price
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1,45 1,50
1,65 1,65 1,651,75
1,0%
2,0%
3,0%
4,0%
5,0%
1,00
1,25
1,50
1,75
2,00
Dividend yield (based on average share price)
Dividend per ordinary DSM share - € DSM vs. Peers, AEX & DJS Chemicals
DSM’s shareholder value ~30% (~€3bn) higher since announcement of Strategy 2018, outperforming markets
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Dividend €1.75
2016
Dividend €1.00
2006
+75%
0
25
50
75
100
125
150
175
200
May
-07
May
-08
May
-09
May
-10
May
-11
May
-12
May
-13
May
-14
May
-15
May
-16
DSM AEX
+90%~€35
~€65
Strong performance reflected in higherdividend and share price
Strategy 2018: driving profitable growthThrough science-based, sustainable solutions.
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NUTRITION
CIRCULAR & BIO-BASEDECONOMY
CLIMATE & ENERGY
DSM’s strategy well aligned with UN SustainableDevelopment Goals
Nutrition at a glance (2016)
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Sales€5.2 billion
Adj. EBITDA€931 million
World leadingsupplier
offull range
ofnutritionalingredients
Global presence
Facilities on allcontinents
~13,000employees
• DSM is the leading supplier of vitamins, omega’s, carotenoids, nutritionalingredients, UV filters, premixes and nutritional solutions for human andanimal nutrition & health. It has the most complete feed enzymes portfolioworldwide. DSM also supplies aroma intermediates
• Its customers are global, regional and local feed and premix companies,animal protein producers and food, beverage, infant nutrition, dietarysupplement, pharmaceutical, personal care and flavor & fragrance companies
Addressinghealth
&wellness,
food security,globalshifts
Examples nutritional products of DSM
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Vitaminsare essentialnutrients requiredfor growth and well-being. DSM has all 13Vitamins including A,D, E, K, C, all Bvitamins, folic acidand pantothenic acid
Carotenoids:Essentialantioxidantsincreasingperformance andconsistentpigmentation a/ofor salmon, eggs
Nutritional Lipids:Omega-3 and –6 play acritical role in properbrain function, visionprocess, immune andinflammatoryresponses andhormone-likemolecules
Feed Enzymes:Solutions developedto meet challenges ofglobal livestockfarming. Reducingcosts by improvingfeed conversion andanimal health
More examples of nutritional products
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Food & Beverage Enzymes:natural proteins that act ascatalysts for biochemicalreactions, used in dairy,baking, beverages, oil &fats and grain processing
Minerals for animalsthat are needed by thebody in very small amountsthat cannot be made byliving organisms
Yeasts, cultures andprobiotics:providing taste andtexture and addingspecific health benefits
Materials at a glance (2016)
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Sales€2.5 billion
Adj. EBITDA€435 million
Worldleadingsupplier
ofhigh
performancematerials
Global presence
Facilities onall continents
~4,500employees
• DSM has developed a portfolio of specialized performance materials withhigher value added businesses, serving the global automotive, electrical &electronics, building & construction, food-packaging, high-performancetextiles & life protection end-markets
• DSM is a leading provider of sustainable innovations, meeting demands forgreater energy efficiency, safer materials and improved environmentalperformance
Addressingsafety,
fuel efficiency,emission-reduction,
health,comfort
Examples of materials of DSM
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DSM EngineeringPlastics is supplier ofhigh performanceengineeringthermoplastics asStanyl®, ForTii®,ExoPaxx®, Akulon®,Arnite®, Xytron®, usedin automotive,electronics,specialized industriesand food packaging
DSM Dyneema is theglobal supplier ofDyneema®, theworld’s strongestfiber™, used formedical sutures,fishing, aquaculturenets, ropes, slings,cut-resistant gloves,vehicle & personalballistic protection
Innovative resins forsustainable coatingssystems, including:waterborne resins,powder resins and100% UV curableresins
High-performanceUV-curable opticalfiber materials forhigh-speed fibernetworks connectingthe world
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Maxarome® replacing salt,reducing health risks, whilstmaintaining a good taste
• DSM’s innovation activities are focusing on products &solutions that nourish, protect and improve performances,within existing businesses
• DSM invests in new emerging business platforms,instrumental in turning innovations in major businesses
• DSM recognized as top innovator in external benchmarks
Innovation is our passion
Innovation strongly contributes to DSM’s growth
Innovation Sales (as % of total sales)
Bio-based Coating Resins
0
10
20
30
2010 2016 2018Aspirations
Three attractive innovation platforms
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Bringing Life Sciences and Materials Sciences competences together
DSM BiomedicalInnovative materials thatdeliver more advancedclinical procedures andimproved patientoutcomes
DSM Bio-based Products& ServicesAdvanced enzymes andyeast platforms: enablingadvanced bio-energy andbio-based chemicals
DSM Advanced SurfacesSmart coatings andsurface technologies toboost performance in thesolar industry
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DSM’s profitable solutions should be better for people and planet
65%
Stepping-up sustainability aspirationsBrighter Living Solutions
Brighter Living Solutions (for planet)
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Anti-reflectivecoatings for solar glassincreasing efficiencyof solar panels
Dyneema® forsustainable and durablecargo nets, reducesweight
Higher eco-efficiency anddownstream cost benefitswith Brewers Clarex™applied in beer
HEALTH I NUTRITION I MATERIALS
Brighter Living Solutions (for people)
Optimizedvitamin-D,preventingosteoporosis andreducing fractures.Improving lives &reducing costs
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DSM’s waterbornecoating systemshave less impact onhealth compared tosolvent bornepaints
Surgeons benefitfrom an effectivebarrier againstbacteria andviruses withdisposable medicalgowns made fromArnitel® VT
ALPAFLOR®
EDELWEISS:Preserves skin’snatural balance.Supports Alpine floradiversity andcontributes to localprosperity
HEALTH I NUTRITION I MATERIALS
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DSM - UN World Food Program partnership strengthened to combat globalmalnutrition: double number of beneficiaries to >25m per year
DSM and Unicef collaborate to support micronutrient programs in Nigeria andMadagascar. The partnership helped build capacity by supporting the AfricanNutrition Leadership Program
Engaged in various nutrition partnerships, incl.: Scaling Up Nutritionmovement (SUN), US Agency for International Development (USAID), VitaminAngels, World Vision International, Partner for Food Solutions
Championing the UN Sustainable Development Goals (Paris) includingeradicating hunger
Participating in Africa Improved Foods addressing malnutrition in a/o Rwanda
Supporting healthier diets in the Western world by advocacy, innovations
Rewarding partnerships to fight malnutrition globally
People, Planet, Profit: We cannot be successful in a world that fails
§Leader Dow Jones Sustainability Index
§Fortune 50 leading companies changing the world
§Corporate Knights Materials Leader
§Biofuels 40 Hottest Emerging Companies
§Best Ethical Corporation Responsible Business Awards
§Leader in Sustainalytics
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External recognition (2016) for our leadership
DSM Corporate Communications' (+31) 45 578 2017e-mail: [email protected]
Investors: DSM Investor Relations' (+31) 45 578 2864e-mail: [email protected]
www.dsm.com
Contact
Stay informed via the DSM Investor Relations app(Apple’s App store & Google Play)
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