Royal DSM N.V. Q2 2009 Results

Life Sciences and Materials Sciences

Presentation to Investors

Address:

DSM Investor RelationsP.O.Box 6500, 6401 JH HeerlenThe NetherlandsTel: +31 45 578 2864Fax: +31 45 578 2595E-mail: investor.relations@dsm.com

www.dsm.com

➤ Operational Performance Q2 2009

➤ Progress on Strategy

DSM Investor Relations P.O. Box 6500 6401 JH Heerlen The Netherlands

Tel. (31) 45 5782864 Fax (31) 45 5782595 E-mail: investor.relations@dsm.com

www.dsm.com

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Dear Investor,

“Early and aggressive action to reduce costs, a focus on cash,stringent management of working capital and the ongoing resilienceof our Life Sciences businesses, have all ensured that DSM is in goodshape at the end of the first half of 2009.

Although there is little sign of improving demand across manyend–markets, Q2 earnings were up sharply compared with the firstquarter driven by Materials Sciences as inventory write–downs andcustomer de–stocking have largely run their course.

DSM is staying the course, even in these challenging times. This isillustrated by the announcement of the disposal of two non–corebusinesses in July, our ongoing strategic commitment to ourcustomers, innovation and sustainability and our focus on China,where we are reaping the benefits of a favorable market. Our strongbalance sheet and robust cash flow leave us well placed to takeadvantage of future opportunities that will arise.”

Feike SijbesmaChairman of theManaging Board

• The general global economic downturn, which ishaving a very adverse effect on almost half of DSM’sbusinesses (DSM Engineering Plastics, DSM Resins,DSM Fibre Intermediates, DSM Elastomers and DSMMelamine), continued into Q2. However, in contrastto the previous two quarters there are strongindications that downstream de–stocking has largelycome to an end in most markets. This is reflected inan improved demand compared to Q1, bringing theyear–on–year drop in demand in these businessesmore in line with the development of end–markets.

• Nutrition continued to show resilience reflecting verystrong positions in markets which have seen only alimited impact of the downturn. The Pharma resultwas low due to weak volumes.

• The Materials Sciences clusters (PerformanceMaterials and Polymer Intermediates) were lifted backinto a profitable position again, driven by improveddemand, a continued focus on efficiency and someincrease in margins. DSM Dyneema, however,experienced weakening demand, mainly in industrialapplications.

• The pressure on the business of DSM Agro continued.Although Q2 saw a pick–up in volumes, lower pricesresulted in a loss for the period.

• Although operating profit showed a sharp dropcompared to previous year’s record level, it clearlyimproved against Q1 due to the improvement inMaterials Sciences

• Net profit decreased from EUR 192 million in Q22008 to EUR 10 million in Q2 2009.

• As from the end of this quarter DSM Energy and theurea–licensing business are reported as assets held forsale and discontinued operations, because agreementshave been reached to divest these activities as part ofDSM’s accelerated Vision 2010 strategy. Previousperiod figures have been adjusted accordingly. Moredetails can be found on the slide “Comparative figuresafter announced disposals”.

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• Nutrition maintained its very strong performance,based on its marketing strategy and the change inindustry dynamics. The economic downturn is havinga limited effect on trading conditions.

• The Pharma result was low, due to the lower businessactivities in the custom manufacturing business atDSM Pharmaceutical Products and thedemand/supply situation at DSM Anti–Infectives.

• In Materials Sciences, the inventory write–downscaused by the drastic drop in oil prices and rigorousdownstream de–stocking in most markets, appeared tobe coming to an end. DSM Resins and DSM FibreIntermediates are both back at profitable levels. DSMDyneema saw a drop in profit. Improved costefficiency contributed as expected.

• The main difference in the result of Other activitiescompared to last year is the (non cash) increase inIFRS pension costs for defined benefit plans.

• The operating profit of DSM’s core business as a LifeSciences and Materials Sciences company (i.e.excluding Base Chemicals and Materials anddiscontinued operations) improved fromEUR 58 million in Q1 to EUR 94 million in Q2(+64%).

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• Sales dropped by 20% compared to Q2 2008. Allbusiness groups, except the two Nutrition businessgroups, showed a sales level clearly below last year’s.In Nutrition weaker volumes were more thancompensated for by strong pricing and a favorablecurrency exchange rate effect.

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• Despite of the weakness compared to last year, therewas a clear recovery compared to Q1, as industrialdemand got more in line with end–market demand(slowing down of de–stocking) and China regainedmomentum.

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• Second quarter results for the Nutrition clustercontinued to be strong despite the organic salesdevelopment of –6% compared to Q2 2008. Lastyear’s H1 sales volumes benefited to a certain extentfrom inventory build–up in the trade channels inanticipation of higher prices and the impact of theBeijing Olympics. This was followed by inventoryreduction at the end of 2008 and the beginning of2009. Current sales are a reflection of underlyingend–use demand. In Q2 2009 demand improvedcompared to Q1 mainly in animal nutrition, whiledietary supplements saw some weakness. Prices,especially for fat soluble vitamins, remained relativelystrong and were above Q2 2008. Compared to Q12009, there have been price declines with somereversals towards the end of Q2.

• Operating profit of DSM Nutritional Productsincreased compared to Q2 2008 mainly based onpricing and a relatively strong dollar. DSM NutritionalProducts started reducing production output in Q2 toimprove its overall working capital. DSM FoodSpecialties’ operating profit was similar to last yearwith strong performance in enzymes, such as BrewersClarex® and ARA (an infant nutrition ingredient).

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• Sales of the Pharma cluster continued to be underpressure due to a low activity level in the custommanufacturing business of DSM PharmaceuticalProducts related to destocking, delay in approvals andthe loss of some larger contracts. DSM Anti–Infectivesfaced weak market conditions.

• These developments resulted in a lower operatingprofit compared to the previous year. Compared to lastquarter the USD exchange rate had an additionalnegative impact.

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• Compared to same period last year organic salesdevelopment was –31% as trading conditions wereworse for all business groups. In contrast, salesshowed improvement against the previous quarter atDSM Resins and DSM Engineering Plastics.Construction and automotive related businessesremained slow. Substantial effects of de–stocking inthe market as experienced in Q1 were less apparent inQ2. DSM Dyneema experienced weakening demandespecially in commercial marine, sports and highperformance textiles.

• The cluster reported an operating profit after twoquarters of losses. Results of both DSM Resins andDSM Engineering Plastics improved from Q1 asdemand improved. The operating profit for the quarterdecreased substantially against the same period lastyear due to the economic downturn, partially offset bylower raw–material costs as well as structural costreduction programs. The quarterly result of DSMDyneema dropped compared to the same period lastyear as weaker demand has an impact on this businessas well.

• Organic sales growth in the cluster was 58% comparedto Q1, but still negative (–40%) compared to the samequarter of last year. The improvement was mainly dueto volume recovery, somewhat higher caprolactamprices in China and higher exports of acrylonitrile.

• The Polymer Intermediates cluster delivered a smalloperating profit after losses in the preceding twoquarters, partly based on cost savings. The gapcompared to Q2 last year was still significant asEuropean and US volumes remained weak.

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• Sales volumes were lower compared to last year, withthe exception of DSM Agro, which reported very highvolumes towards the end of Q2, largely compensatingfor the late season start in Q1. Although the otherbusinesses were still suffering from the lower demandin the automotive industry (DSM Elastomers) and inthe building industry (DSM Melamine), volumesincreased gradually compared to the first quarter.

• The operating profit of the cluster was negative for allmain business groups. The volume increase in Q2compared to Q1 was not sufficient to compensate forthe substantially lower prices in fertilizers. Costssaving programs for the cluster are in place and havestarted contributing to the result.

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• As a result of DSM’s continued strong focus on cashand despite the lower operating profit, Cash flow fromoperating activities increased to EUR 433 million forthe first half year (Q2: EUR 267 million) compared toEUR 281 million in the first half of 2008(Q2: EUR 185 million).

• Cash used for capital expenditure in the first half of2009 amounted to EUR 235 million compared toEUR 258 million in the first half of 2008.

• During the last three quarters net debt decreased fromEUR 1,887 million (end of Q3 2008) to a level ofEUR 1,677 million at the end of Q2 2009 due to thegood cash performance.

• The 6.75% USD 250 million loan maturing in Maywas repaid out of cash.

• Standard and Poor’s has affirmed the A– rating andmaintained the stable outlook on 3 August, 2009.

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• Above are the 2008 and Q1 2009 comparative figuresto reflect the reclassification of DSM Energy andStamicarbon from the Base Chemicals & Materialscluster to discontinued operations as well as thereclassification of DSM’s participation inNoordgastransport from Other activities todiscontinued operations.

• DSM has reached an agreement with TAQA AbuDhabi National Energy Company PJSC for the sale ofDSM Energie Holding B.V. (DSM Energy) for anenterprise value of EUR 285 million. The intended saleis expected to close in Q3 2009, subject to regulatoryapprovals and notifications. The disposal consists ofthe participations which DSM has in oil and gasexploration and pipelines, including the 40%participation in Noordgastransport. The expected bookprofit is approximately EUR 275 million after tax onthe sale. This profit will be reported as an exceptionalitem in the income statement at closing. DSM Energyrealized net sales of EUR 161 million in 2008.

• DSM and Maire Tecnimont S.p.A., a leadinginternational engineering and construction groupheadquartered in Italy, announced an agreement isreached for the sale of DSM’s urea–licensingsubsidiary Stamicarbon B.V. to Maire Tecnimont for atotal consideration of EUR 38 million on a cash and

debt–free basis. The intended sale is expected to closeby Q4 2009, subject to regulatory and othercustomary approvals and notifications. Stamicarbonrealized net sales of EUR 57 million in 2008 and anoperating profit of EUR 25 million. In 2008Stamicarbon’s operating profit was exceptionally highas a result of a number of large contracts closed duringthe year. The average operating profit for Stamicarbonhas been approximately EUR 10 million per year overthe past four years.

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• DSM’s focus on Life Sciences (Nutrition and Pharma)and Materials Sciences (Performance Materials andPolymer Intermediates) is fueled by the four majorsocietal trends: Climate Change and Energy; Healthand Wellness; Functionality and Performance; andEmerging Economies. Life Sciences and MaterialsSciences offer attractive growth potential inthemselves and in combination. DSM’s EBA(Emerging Business Area) program, started with Vision2010, creates growth platforms based on the strengthsand synergies of DSM’s positions in Life Sciences andMaterials Sciences. By focusing on Life Sciences andMaterials Sciences, DSM can address the unmet needsreflected in the four main societal trends mentioned.Innovation solutions play a key role in this respect.

• The activities in DSM’s Nutrition cluster havepositioned DSM as a leading, innovative producer offood and feed ingredients and provide an excellentplatform towards the growing demand for innovativeingredients with a health–enhancing effect. DSM’sPharma cluster is firmly positioned as a producer ofpharmaceutical ingredients and services, based on aset of very strong technology positions. Similarly,DSM’s Performance Materials cluster has a uniqueportfolio of mainly in–house–developed successfulmaterials with outstanding properties.

• On top of this, DSM is convinced that biotechnology,traditionally associated with life sciences, willincreasingly play a role in developing new biomaterialsand materials which will be increasingly applied in lifesciences applications. The cross–fertilization potentialbetween Life Sciences and Materials Sciences is high.

• Despite the significant deterioration of marketconditions in some of our businesses since the end oflast year, DSM is convinced it has chosen the rightstrategy with the accelerated transformation towards aLife Sciences and Materials Sciences company capableof sustainable growth. DSM will therefore continue itsstrategy. With the actions announced and ourcontinued full commitment to our innovationprograms we are convinced DSM will be in an evenstronger position in the future.

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• Despite the turbulent times in the world economy,DSM continues its strategy and focuses on its LifeSciences and Materials Sciences businesses. In Q2DSM reported the following progress with theimplementation of the strategy.

• DSM Engineering Plastics and Mitsubishi ChemicalCorporation (MCC) signed a memorandum ofunderstanding for DSM to acquire MCC’s Novamid®

polyamide business in exchange for DSM’s Xantar®

polycarbonate business. With this move, DSMEngineering Plastics will be able to further reinforce itsposition as one of the globally leading producers ofpolyamide engineering plastics.

• DSM Engineering Plastics also announced that it willexpand market development plant capacity for Stanyl®

ForTii™ in order to meet demand for this newpolymer, which is used in electronics and otherapplications.

• DSM announced an agreement to acquire BiopractGmbH, based in Berlin (Germany). This acquisitionwill serve as an entry point for DSM into thepromising biogas market, which is showing 15–20%growth per year. Biopract’s activities will be integratedinto DSM’s biogas service concept for optimizing thebiotechnology of biogas plants. The impact of the

acquisition on DSM's net sales in 2009 and 2010 isnot expected to be material.

• In Q2 2009 sales in China amounted to USD283 million, which represents a decrease of 14%relative to the comparable period of last year.Compared to Q1 however, sales increased by 44%.Almost all businesses, but especially DSM FiberIntermediates, are experiencing a strong improvementin demand, sometimes even back to pre–crisis levels.

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• In September 2007 DSM announced that, as a resultof the accelerated shift towards Life Sciences andMaterials Sciences, a number of businesses which donot fit in with the accelerated strategy would becarved out and disposed of.

• Since the end of the second quarter, DSM has madeprogress with the planned disposals. On 29 July anagreement with TAQA Abu Dhabi National EnergyCompany PJSC for the sale of DSM Energie HoldingB.V. was announced. Included in the scope are theparticipations which DSM has in oil and gasexploration and the 40% participation in Noordgas-transport. On the same day an agreement for the saleof the urea–licensing subsidiary Stamicarbon B.V. toMaire Tecnimont was announced that day. Thedivestments are expected to close in Q3 and by Q4 of2009 respectively, subject to regulatory approvals andnotifications.

• The disposal process for DSM Elastomers, DSM Agroand DSM Melamine is underway. As reported earlier,DSM has slowed down the process in view of thecurrent financial and economic environment but stillaims to complete the disposals by the end of 2010.

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• With the Life Sciences showing resilience, a costsaving and cash program successfully being executedand with a sound and solid balance sheet, DSM is ingood shape to weather the current storm.

• In December 2008 DSM announced a number ofstructural cost–saving actions to address the effects ofthe economic downturn and to strengthen itscompetitive position. Implementation of these actionsis underway and DSM will clearly exceed theincreased cost savings target of EUR 125 million, to befully achieved by 2010. These actions are expected toresult in a reduction in workforce of 1250 positions.Apart from the workforce reduction, the actions alsocover a stronger focus on purchasing and otherefficiency improvement measures. DSM will alsofurther reduce the number of temporary workers.

• The cash focus is and will remain an integral part ofDSM’s business steering in the future. In Q2 itresulted in a cash flow from operating activities ofEUR 267 million.

• DSM’s financial strength is reflected in the creditrating. Standard and Poor’s has affirmed the A– ratingand maintained the stable outlook on 3 August, 2009.DSM has no significant long term refinancing needsuntil 2014. DSM has a commercial paper program

amounting to EUR 1500 million and two committedcredit facilities of EUR 500 million (until 2012) andEUR 400 million (until 2013). DSM has nocommercial paper outstanding.

• No decisions on further cost saving programs whichcould include further workforce reduction and/orplant closures are foreseen before the end of the year.

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• DSM’s cash performance was very strong for the thirdquarter in a row, in spite of the depressed externalenvironment. The focus on working capitalmanagement, credit control, cost efficiency andresponsible priority setting for capital expenditureswas effective. Net debt decreased again, even thoughthe final dividend for 2008 was paid in this quarter.

• A large corporate project aimed at reducing workingcapital in a structural way has been initiated and isunderway in its implementation phase.

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• DSM Nutritional Products has developed REGU®–CEA,a unique complex of highly active ingredients to helpfight skin redness and visible blood vessels – two ofthe symptoms of rosacea. Environmental factors suchas UV radiation and temperature fluctuations can actas triggers; they irritate the skin and set off a cascadeof events that ultimately damage blood vessels andskin structures. REGU®–CEA is suitable for a broadrange of cosmetic applications. It produces excellentresults when incorporated into sensitive skin serumsand make–up primer, as well as after–sun productsand body creams.

• DSM Biomedical has extended its ComfortCoat™technology platform by designing a hemocompatibleantimicrobial coating to thwart intravascularcatheter–related bloodstream infections. For example,in the US, some 80,000 catheter–related bloodstreaminfections occur annually in intensive care units andare associated with as many as 24,000 patient deathseach year. With this innovative ComfortCoat™technology, several tests have been performed,indicating bactericidal activity against E. Coli andS. Aureus. In addition, ComfortCoat™ offers excellentlubricity and superior durability, thereby reducingstiction and friction resulting in reduced patientdiscomfort and tissue damage.

• DSM Engineering Plastics has further expanded itsGreen Portfolio by introducing EcoPaXX™, abio–based, high performance engineering plastic,

based on polyamide (PA 4.10). EcoPaXX™ combineslow moisture absorption with a high melting point(highest of all bioplastics), high resistance to salts andhigh crystallization rate. It combines the best of bothworlds and is therefore suitable for many high–techapplications, for instance in the automotive andelectrical markets. EcoPaXX™ is a green, bio–basedmaterial: approximately 70% of the polymer consists ofbuilding blocks derived from castor oil as a renewableresource. EcoPaXX™ has been shown to be 100%carbon neutral from cradle to gate, which means thatthe carbon dioxide which is generated during theproduction process of the polymer is fullycompensated for by the amount of carbon dioxideabsorbed in the growth phase of the castor beans.

• Optical fiber coatings are a critical component oftoday’s high–speed fiber networks, helping to preventsignal loss as well as giving fibers a longer life and amore reliable field performance. As explodingbandwidth demand presses fiber producers to increaseline speeds for higher productivity, only the mostadvanced coating materials will be able to meetincreasingly aggressive fiber performance requirementsand reduce the risk of costly network failures. DSMDesotech’s patented DeSolite Supercoatings™demonstrate a significant technological advancementin microbend sensitivity (to minimize a fiber's signalloss over time and distance) as well as in mechanicalproperties (to increase fiber robustness in alltemperature extremes).

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• DSM’s Nutrition cluster showed strong performancethroughout the recession and profitability is on a new,higher level.

• The industry experienced several structural changes.Customers around the world have a heightenedawareness of quality and safety issues in food and feedproducts. DSM Nutritional Products is benefiting fromits emphasis on quality, reliability and traceabilitywhich has become vitally important to thesecustomers. The strategy of focusing on differentiationand innovation is gaining traction and DSM isrecognized as a driving force for innovation in theindustry. DSM is the most integrated industry player,well–placed to serve these customers with higheradded value premixes and base vitamins, in both ofwhich it has a strong position.

• Furthermore, changing dynamics, especially in China,are driving changes in vitamin markets. Somecompetitors have been impacted by additionalinvestments and costs for environmental and qualityreasons, the increase in energy and raw materialprices, inflation, privatizations and local exchange–ratemovements.

• The food enzymes businesses are showing a positivetrend, particularly in the bakery and dairy segments.Innovative enzymes such as Brewers Clarex® andPanamore™ are showing strong performance.

• Arachidonic acid (ARA) sales continue to grow verywell and are firming up in China. ARA is mainlymarketed as an ingredient in infant formula and assuch is benefiting from past food scandals in Asia.

• In Q2, several trends continued to influence ourcustomer demand patterns. Animal feed demandexperienced some aftermath from de–stocking andcontinued lower meat production. However, demandimproved compared to the first quarter. In humanapplications a shift took place from branded productstowards private labels in dietary supplements, whichaffected DSM’s sales negatively.

• Temporary plant closures, to manage the workingcapital, occurred in this quarter and are expected tocontinue into the next quarters, in addition to somescheduled maintenance shut downs.

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• End–consumers are more and more sensitive aboutthe quality and safety of food and health products as aresult of the ingredients scandals over the last fewyears. Ingredients customers aim for full supply chaincontrol and aim to reduce risk exposure by choosingquality ingredients. Ultimately, only the solidreputation and track record of an ingredients suppliercan truly guarantee peace of mind for industry andconsumers.

• The “Quality for Life™” program aims to safeguardthe reputation of quality conscious nutrition customersand to protect their brand value. The program entailsproviding full quality, reliability and traceability ofDSM products in the customer’s supply chain. Theprogram has been successfully introduced throughinvestments and a cultural change in the organization.It is one of the cornerstones for DSM to maintain itspricing leadership in the nutritional ingredientsmarket.

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• There are strong indications that downstreamde–stocking has come to an end in most markets,evidenced by an overall demand improvementcompared to the first quarter. Demand is however stilllow compared to pre–recession levels. The exceptionto this development is China, where DSMexperienced strong demand. Conditions in the US andEurope continued to be weak. No furtherimprovements from current market conditions areexpected in the short term, with a risk of temporarylower demand during the summer.

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• An improvement of demand could lead to betterresults, although there are several risk factors to betaken into account. Supply–demand became morebalanced in Q2, but based on installed capacity globalutilization rates in many chemicals are still lowcompared to last year. An increase in demand mighttrigger producers to re–start their plants and increasesupply, resulting in pressure on prices and margins.

• Furthermore, an adverse development of raw materialprices, energy prices and / or currencies in a recoveryscenario can lead to additional margin pressure due tohigher cost and unfavorable exchange rates.

• Underutilization for cyclicals might continue until themarket is restructured. As DSM has global leadershippositions in many of its products, DSM is shoulderingits responsibility to manage (temporary) globaloversupply, for example by mothballing a caprolactamline in Augusta (US) and a melamine plant in Geleen(Netherlands) and by temporary closures across thebusinesses.

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• Due to weather conditions, the start of the fertilizerspreading season in North–West Europe was delayedinto the second quarter.

• In addition to the delayed season, CAN volumes werelow at the beginning of the quarter due to low pricedurea/urean imports. Market prices for calciumammonium nitrate declined dramatically towards theend of May. The low price of 115 EUR/mt finallyresulted in much higher volumes for DSM Agrotowards the end of Q2, compensating almost fully forthe low levels at the beginning of the year.

• Although prices for natural gas declined too, this wasinsufficient to compensate for the strong drop inprices, resulting in a negative operating profit for DSMAgro in Q2.

• Based on the current market prices quoted for deliveryin Q3, a slight price increase for calcium ammoniumnitrate is expected in Q3 2009. Furthermore, Q3 gasprices are expected to remain stable at Q2 levels. Ingeneral, some improvement in the profitability of DSMAgro is expected for the third quarter.

• The above graph shows the prices of calciumammonium nitrate (source: FMB Fertilizer Europe)and the price of natural gas. (source: Reuters) Pleasenote that this gas price in the graph is not the pricethat has been invoiced to DSM. For commercialreasons, DSM does not disclose its gas prices.

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• The relatively favorable business conditions inNutrition are expected to continue with pricesremaining firm in both Animal and Human marketsand further demand recovery. The Nutrition cluster isexpected to achieve full year results somewhat abovethe 2008 level.

• Pharma results are expected to be substantially lowerthan last year due to lower prices at Anti–Infectivesand challenges to fill the pipeline at DSMPharmaceutical Products although further progress isbeing made. The results of DSM PharmaceuticalProducts are expected to be better towards the end ofthe year.

• In Performance Materials DSM Dyneema now expectslower sales than last year. The uncertainty regardingdemand continues for DSM Engineering Plastics andDSM Resins.

• There is a similar lack of clarity at PolymerIntermediates and Base Chemicals and Materials,which will both most likely be loss–making in 2009.

• Due to DSM’s successful focus on cash and cost savingprograms DSM will maintain its solid financial positionwhich is necessary for the execution of its strategy:DSM is “Staying the course”.

• DSM will provide no quantitative outlook for 2009 inview of the uncertain economic conditions.

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DISCLAIMER

This document may contain forward–looking statements with respect to DSM's future (financial) performance and position. Suchstatements are based on current expectations, estimates and projections of DSM and information currently available to thecompany.

Examples of forward–looking statements include statements made or implied about the company’s strategy, estimates of salesgrowth, financial results, cost savings and future developments in its existing business as well as the impact of future acquisitions,and the company’s financial position. These statements can be management estimates based on information provided by specializedagencies or advisors.

DSM cautions readers that such statements involve certain risks and uncertainties that are difficult to predict and therefore it shouldbe understood that many factors can cause the company's actual performance and position to differ materially from thesestatements.

These factors include, but are not limited to, macro–economic, market and business trends and conditions, (low–cost) competition,legal claims, the ability to protect intellectual property, changes in legislation, changes in exchange and interest rates, changes in taxrates, pension costs, raw material and energy prices, employee costs, the implementation of the company’s strategy, the company’sability to identify and complete acquisitions and to successfully integrate acquired companies, the company’s ability to realizeplanned disposals, savings, restructuring or benefits, the company’s ability to identify, develop and successfully commercialize newproducts, markets or technologies, economic and/or political changes and other developments in countries and markets in whichDSM operates.

As a result, DSM’s actual future performance, position and/or financial results may differ materially from the plans, goals andexpectations set forth in such forward–looking statements.

DSM has no obligation to update the statements contained in this document, unless required by law. The English language versionof this document is leading.

A more comprehensive discussion of the risk factors affecting DSM’s business can be found in the company’s latest Annual Report, acopy of which can be found on the company's corporate website, www.dsm.com

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Information about ordinary DSM shares

DSM ordinary shares (ISIN code NL0000009827, fondscode 00982) are listed on the stock exchanges of Amsterdam. Options onDSM shares are traded on the European Option Exchange in Amsterdam. In the USA a sponsored unlisted American DepositaryReceipts program is being run via Citibank NA (Cusip 780249108); four ADRs represent one ordinary DSM share.

per ordinary share1 in € 2008 2007 2006 2005 2004

net profit before exceptional items 3.64 3.07 2.85 2.82 2.09net profit 3.45 2.35 2.83 2.68 1.41cash flow 6.20 5.56 5.21 5.65 4.52 shareholders’ equity 27.12 30.42 30.03 27.59 25.19

dividend: 1.20 1.20 1.00 1.00 0.875 – interim dividend 0.40 0.33 0.33 0.29 0.290 – final dividend 0.80 0.87 0.67 0.71 0.585

pay–out including dividend on cumulative preference shares as % of net profit beforeexceptional items 36% 35% 38% 33% 45%

dividend yield (based on average price of anordinary DSM share) 3.9% 3.3% 2.9% 3.4% 4.3%

share prices on Euronext Amsterdam: – highest price 41.27 39.87 39.70 35.22 23.85 – lowest price 15.76 31.63 28.58 23.07 17.88 – at 31 December 18.33 32.33 37.43 34.50 23.81

number of ordinary shares outstanding: (x 1,000) – at 31 December 162,227 166,897 184,850 190,923 191,957 – average 164,196 178,541 189,550 190,783 191,617

daily trading volumes on Euronext Amsterdam:– average 1,783 1,590 1,301 1,063 1,014 – lowest 152 94 267 238 26 – highest 5,894 11,347 5,268 6,563 6,494

Footnote:

1 On 5 September 2005 DSM effected a stock–split on a two–for–one basis (two new shares for one old share). The data regarding the number of shares and earnings per share in the overview

have been presented as if the splitting of the ordinary DSM shares had taken place prior to all periods presented.

Royal DSM N.V. Q2 2009 Results

Life Sciences and Materials Sciences

Presentation to Investors

Address:

DSM Investor RelationsP.O.Box 6500, 6401 JH HeerlenThe NetherlandsTel: +31 45 578 2864Fax: +31 45 578 2595E-mail: investor.relations@dsm.com

www.dsm.com