DBS FSS Realize Financial Excellence in Shared

Services Organizations

Theo de Haas, Enterprise Information Director

September 2015

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• Our purpose is to create brighter lives for

people today and generations to come

• We connect our unique competences in Life

Sciences and Materials Sciences to create

solutions that nourish, protect and improve

performance

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Mission

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DSM at a glance (2014)

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Sales*

~€10 billion

Global* presence

~25,000

employees worldwide

Listed at Euronext NYSE

Share price ~ quintupled in 25 years

• DSM is a global Life Sciences and Materials Sciences company active in health, nutrition and materials

• DSM delivers innovative solutions that nourish, protect and improve performance in global markets such as food and dietary supplements, personal care, feed, medical devices, automotive, paints, electrical & electronics, life

protection, alternative energy and bio-based materials

• DSM and its associated companies deliver annual net sales of about €10 billion with approximately 25,000 employees

Sustainability leader

Top ranking Dow Jones

Sustainability Index

* Including 2014 pro-forma and pro-rata (annualized) sales & number of employees (ultimo 2014) of non-consolidated Associates & Joint Ventures (for sales this is mainly DPx Holdings and DSM Sinochem Pharmaceuticals)

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Leader 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 the automotive, electrical & electronics and building & construction industries

• Recognized as top innovator active in biomedical materials, advanced biofuels, bio-based chemicals and advanced surfaces for solar systems

Health Nutrition Materials

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Africa:

73 employees

Global presence*

Latin America:

1,925 employees

North America:

3,283 employees

Europe:

9,425 employees

Africa & Oceania:

113 employees

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Continuing Operations as reported ultimo March 2015

Rest of World

Western Europe

High Growth

Economies

North America

42%

6%29%

23%

Sales by destination Q1’15*

Asia:

5,955 employees

* Excluding the activities for which we announced a partnership with CVC Capital Partners in March 2015, of which DSM remains a 35% shareholder and excluding our non-consolidated Associates & Joint Ventures

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Population growth

Wealth increase

Resources constraints

Sustainability concerns

Urbanization drive Healthcare

issues

Energy concerns Food composition

Aging population

Growth driven by global megatrends

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Materials Nutrition Health

Global Shifts Climate & Energy Health & Wellness

Realize Financial Excellence in Shared

Services Organizations

Our journey

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The road to financial excellence

Collaborating in

‘One DSM’

“CSD” “One DSM” Finance

Management

Agenda

Leverage

Financial

Operations

Arjuna

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First step: Setting up a financial SSC

• Objectives:

1. Harmonize, streamline and standardize AP, AR/CM, AtR processes

2. Enable Finance to focus on more value adding tasks

3. Create a platform for leverage of other Functions

4. Enable acquisitions, partnering via easier integration (agility)

5. Reduce costs

Finance in motion, creating new perspectives

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• G/L Accounting Completeness and Correctness

• GL Processing and Problem Resolution

• IC Reconciliation

• Cash man. Exec.

• Master Data (partly)

• Legal/Fiscal Acc.

• BS Valuation & Result Det.

• Accruals, prov., Prod.Cost., invent. val.

Reporting

• Data Coll. & Val. for Corp. & BU Rep.

• Man. & Fin. Report (SEM) (partly)

• KPI/process reporting

• CBS/Intrastat rep. (partly)

• Consolidation Entries

• Managerial Rep.

• Transfer pricing

• Master data

• Invoice Processing

• Payments Creation

• Accounts Payable Inquiry, Problem Resolution and Correspondence

• Procurement Card Program Administration

• Master Data Man.

•T&E

• Purchasing Support

• Tax Accounting

• Insurance Claims Handling & Processing

• Management Activities and Training

• Master Data

• Treasury

• Tax Planning and Advise

• Insurance Policy

Review & Negotiation

• Insurance Risk Assessment

• Capital Project Accounting

• Investment Related Accounting

• Master Data

• Budget Creation / Authorization

Retained Org. activities

SSC activities

• Billing

• Reporting (partly)

• Customer Payment Receipt and Application

• Accounts Receivables Inquiry, Problem Resolution and Correspondence

• Customer Credit Management

• Collections (partly)

• Master Data (partly)

• Collections (partly)

Accounts Payable

Accounts Receivable

Other

Asset Acc. General Ledger (incl closing and consolidation)

Controlling

• Bus. Proc. Man. (partly)

• Corp. & BU Planning, ASR, Analysis (non- routine)

• Performance

Man./MT’s

• Bus. Proc. Man.

• Bus. Risk Man.

• Ad hoc analysis

Wave 1 : focus on trans. processes ================= Wave 2: expand scope ====================================

Scope: What is in scope of the SSC?

FOR INTERNAL USE ONLY

SSC Functionality

High Level application architecture DBS/FSS: Components

FSS User

Workflow tools and UI Business Reporting and Dashboards

Integration Layer and Master Data management

(SAP) Back end

(SAP) Back end

(SAP) Back end

(non-SAP) Back end

(SAP) Back end

CFO/BG Management

FSS Management (SLA responsible)

SLA reporting

AP GL Asset Mgt

Travel & Expense

Ticketing AR Reporting Other

Basware

SAP FSSF Closing Cockpit

SAP FSSF

Collections & Dispute Mgt

Concur Payment Factory

Payment Factory

SAP FSSF Accounting Interaction

Center SAP BI/BO SAP SSM SAP

WebMethods ESB SAP MDG

SAP BI/BO SharePoint WebMethods

BPMS SAP BI/BO

TradeShift

ARIS PPM

Already in use at DSM

Components SAP FSSF

uPerform

ARIS

FSSF

SAP Accounting Interaction Center

FSSF FSSF

SAP ECC6 Central System

(Substitute)

SAP Financial Shared Services Framework (CRM 7.01)

Other new components (non-SAP)

SAP BI/BO for FSSF SAP BI/BO for FSSF

SAP BI/BO for FSSF

Documentum

CPS by redwood

DSM Store

(SAP) Back end

FSSF FSSF

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For T&E we needed focus.

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Expense Claim Procedure

All claims must be submitted using DSM’s expense claim forms (both overseas and local).

All claims must be supported by documentary evidence of expenditure. Credit card receipts are not acceptable as details of claims need to be filed.

All claims must be approved by the immediate superior. It is the responsibility of the claimant to obtain relevant approvals before forwarding to Finance. For BG X, if there are any deviations from the handbook, Finance has the authority to exclude the disallowable claims and adjust the claim amounts accordingly. We will then inform the claimant on the change.

All claims must be submitted within 2 months of incurring the expenses. Expense claims submitted thereafter will have to be specifically approved by the career manager.

AP will pay according the procedure by the end of the month.

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Selection SAP or Concur

• We needed something easy for the end-users and available also

when they where not in the office.

• SAP solution at that time was not user-friendly enough and also

mobility was not available.

• Mobility and ease of use were the convincing factors to choose for

Concur.

• Also the addition of Travel was a factor but not the most important

one.

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Implementation experiences • We started the implementation at the Managing Board.

• Made a video with the MB to communicate about the

experiences with Concur.

• Introduced at the same time a T&E credit card from

Citibank and connected that to Concur.

• First roll out in the Netherlands, today rolled out globally

• For several countries directly connected to the pay-roll, no

AP involvement anymore.

• For the other ones connection through SIM and then posted

to the different R3 systems.

• A USB Credit card used for training to execute offline, f.i.

in the plane or train.

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Intranet site

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Lessons learned. • Mobility is key in accepting the solution.

• The expense report is most used. Travel part is lacking and

for ‘easy’ trips it’s fine but complicated travel still human

intervention is needed.

• Communication, communication, …..

• Don’t underestimate the effort that goes into the

implementation.

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Next steps. • Currently implemented worldwide for Expense Reporting

– 80.000 expense reports per year

• Travel to be implemented also global.

• Automatic feed from the P-card into Concur to facilitate

the approval process.

• Concur data through SIM from SAP to facilitate automatic

transactions in the different R3 systems

• Further set up of the Finance organization announced

shortly.

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