HEALTH NUTRITION MATERIALS

ROYAL DSM

NutritionChris Goppelsroeder

President & CEO DSM Nutritional Products

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 readers that such statements involve certain risks and uncertainties

that are difficult to predict and therefore it should be understood that many factors can cause actual performance and

position to differ materially from these statements. DSM has no obligation to update the statements contained in this

presentation, unless required by law.

▪ A more comprehensive discussion of the risk factors affecting DSM’s business can be found in the company’s latest

Annual Report, which can be found on the company's corporate website, www.dsm.com

45% of Sales

DSM: True global leader in Nutrition, active over full value chain

Sales by end-market (%) Sales by region (%)

1%

Human Nutrition & Health

Food Specialties

Animal Nutrition & Health

Other

Personal Care & Aroma

Intermediates

Asia

North America

EMEA

Latin America

Food/Feed value chain

Application based

formulations

Nutritional

Ingredients Solutions

incl. premix

Feed, Food, Pharma, Personal Care producers

Retail/end

consumer

Raw

Materials

B2C

Fat soluble vitamins

Water soluble vitamins

Carotenoids

Marine PUFAs

Microbial PUFAs

Enzymes & cultures

Minerals & phosphates

Savory / yeast extracts

Nutraceutical ingredients

Aroma intermediates

Other incl. premix

Sales related to ingredient (%)

45% of Sales 10% of Sales

2016: €5,170m sales - €930m EBITDA – 13,260 employees globally

Page 1

2010-2015: Underlying EBITDA growth driven by successful acquisitionsand good volume growth in Animal Nutrition

Nutrition – EBITDA bridge 2010-15 (€m)

~3 ~5

~23% ~17%

280

130230

110

210

0

100

200

300

400

500

600

700

800

900

EBITDA 2010 PriceVitamin E

FX Acquisitions Growth/synergiesfrom acquisitions

Growth frompre-acquisition

portfolio

EBITDA 2015

684

11% annual

EBITDA growth

on acquisitions

9% annual

EBITDA

growth

823

Sales (€bn)

EBITDA-margin

Page 2

2010-2015: Successful acquisitions strengthened the business model, boosted growth & made strong earnings contribution with further potential

+7%

+10%

’17Acq.

Date

’17Acq.

date

-2%

+2%

’17Acq.

Date

’17Acq.

date

’15Acq.

date’17’17

+4%

’15Acq.

Date’17Acq.

Date

’17

+11%

+5%

Acq.

date

Growth CAGR

Sales

EBITDA

Acq.

Date

’17Acq.

date

+45%

+25%

’17

Human Nutrition

Total

EBITDA Acq. date 2017 Growth CAGR

€225m ~€400m ~10%

Animal Nutrition

+4%

Page 3

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Page 4

2010-2015: Organic growth from pre-acquisition portfolio excl. VE driven

predominantly by Animal Nutrition

Nutrition HNHANH

2010 2015

Net sales (€m) Net sales (€m) Net sales (€m)

+5%

2010 2015

+9%

EBITDA (€m)

2010 2015 2010 2015

0-1%

+9%

Page 5

What made us confident in 2015 on delivering on Strategy 2018 targets?

✓ The track record from our broad portfolio excl. VE &

FX delivering good sales & EBITDA growth

✓ New comprehensive Nutrition Improvement Program

accelerating growth & providing a step-up in EBITDA

✓ The power of DSM’s unique business model further

strengthened by acquisitions

1

3

2

Page 6

Strategy 2018 is working – Organic growth above market in main businesses

Nutrition Human NutritionAnimal Nutrition

Net sales (€m)

Organic growth %

4,9635,169

2,5452,778

0

2,000

4,000

6,000

2015 2016 H12016

H12017

+6%

+5%

€m

+%

Net sales (€m)

2,2692,399

1,1381,263

0

2,000

4,000

2015 2016 H12016

H12017

+7%

+8%

€m

1,742 1,822

934 1,019

0

2,000

4,000

2015 2016 H12016

H12017

+6%

+4%

€m

Net sales (€m)

1

Market growth: 2-3% Market growth: 2-3%Market growth: 2-3%

Page 7

Comprehensive Nutrition Improvement Program to enhance performance

Personal | Food

Care Specialties

Integrated

Business Planning

~5% organic growthper year

1% OWC/Sales reduction per yr

Product Portfolio

~€300m capex per year

Operations

€130-150m savings

Innovation

Major impactbeyond 2018

Human NutritionSpider in the web

For existing

and new products

Strategy 2018

Nutrition

EBITDA back to

range of 18-20%

Staffs &Support functions

Staff & Services

DSM-wide

Savings of

€125-150m

Raw materials purchasing

Fixed cost

Max. throughput

Yield & energy

ACT(DICI/PIP)

More focused

portfolio …

… and higher

speed to market

Animal Nutrition

Projects

Platforms

2

Nutritional

Ingredients

Solutions

Serving our customers globally via a unique business model relevant inboth Animal Nutrition and Human Nutrition

The best of both worlds: economies of scale AND local customer intimacy

LOCAL SOLUTIONSGLOBAL PRODUCTS

Complete product portfolio

Nutraceuticals& Specialties

Omega 3 & 6Nutritional Lipids

Carotenoids Vitamins

LEADING COST POSITION

RADICAL INNOVATION

DEMAND CREATION

MARKET SEGMENT

NEEDS

Full value chain player

B2C & B2F

Application-

based

formulationsEnzymes & EubioticsMinerals

ChuKe

Page 8

Feed premixes

3

Page 9

Resulting in above-market growth & EBITDA margins well within range

Outperforming Strategy 2018 aspirations

Above-market organic growth EBITDA margins 18-20%

18.0%19.0%

0%

5%

10%

15%

20%

25%

2016 H1 2017

5%6%

0%

2%

4%

6%

8%

2016 H1 2017

✓ ✓

Page 10

Outperforming our Strategy 2018 targets on EBITDA and ROCE growth

Outperforming Strategy 2018 targets

✓ ✓High single-digit percentage

annual Adjusted EBITDA growth

High double-digit basis point

annual ROCE growth

822

931

462528

0

300

600

900

1,200

2015 2016 H1 2016 H1 2017

+14%

+13%

10.3%12.0% 12.3%

13.9%

0%

5%

10%

15%

20%

2015 2016 H1 2016 H1 2017

€m

+160+170

Page 11

Confident on further organic growth & EBITDA margin improvement in

coming years

Animal Nutrition &

Health

Human Nutrition &

Health

Food Specialties

~5%

~5%

~5%

Nutrition

✓ Growth

✓ Mix

✓ Cost

✓ Innovation

Organic growth EBITDA margins

~20%