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A short introduction to DSM (2017)

A short introduction to DSM (2017) 16
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RobertPacino,Antarctica,Professional
Published Date:08-07-2017
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A short introduction to DSM (2017) The global science-based company active in health, nutrition and materialsMission 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 Page 2History based on science & innovation DSM (1902) Energy, chemistry & Vitamins & Minerals polymer technology Food Omega’s & Carotenoids Premixes food & feed Materials Sciences Feed Enzymes, Cultures & Yeasts Nutraceuticals Personal Gist-Brocades (1869) Pharmaceuticals Care High Performance Plastics Biotechnology Coating Resins Functional Materials Materials Super strong fibers Biomedical materials Hoffman La Roche’s Bio-plastics Green Life Sciences Vitamins (1930s) Advanced solar Energy Cellulosic bioethanol Chemical synthesis & biotechnology Page 3DSM at a glance (2016) Global Sustainability Sales Listed at presence Euronext NYSE leader 21,000 Top ranking €7,920m in 25 years employees Share price Dow Jones worldwide six fold Sustainability Index  DSM is a global sciences based 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 Excluding 2016 pro-forma and pro-rata (annualized) sales (€1,445m) & number of employees (ultimo 2016) of non-consolidated Associates & Joint Ventures (for sales this is mainly Patheon, DSM Sinochem Pharmaceuticals and ChemicaInvest) Page 4Active in Health, Nutrition and Materials Health Nutrition Materials  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 Page 5Dairy RTE meals Soups / Sauces / Spreads Key markets Wine-Beer-Fruit drinks (Food) Food & Materials Packaging Beverages sciences Other 6% 15% 8% Infant nutrition Building & 6% 6% Construction 7% Dietary 11% Automotive Supplements 5% 4% Personal Electrical & Electronics Care 31% Life Animal Feed sciences DSM offers products & solutions to a wide range of markets Page 6DSM has become a true global company Global workforce (FTE) Net sales by destination (%) 3% 10% North America Europe Asia 3% 2% 29% 3,000 9,000 6,000 12% 6% 12% 23% China W-Europe India Eastern Europe Latin America RoW JV’s Japan North America Rest of Asia Latin America 2,000 250 5,000 Rest of the World € 56% employees outside Europe (2016) 65% sales outside Europe (2016) (37% - 2006) (48% - 2006) As reported in 2006 Annual Report / 2006 Triple P report (not restated) Page 7Higher quality earnings & dividends Significant portfolio transformation Dividend per ordinary share Proportion of DSM sales (%) (€) Innovation Petrochemicals Petrochemicals Base Others Chemicals & Energy Energy Pharma Materials Dividend per share Engineering Engineering Materials Energy Plastic products Plastic products 2,00 Bulk chems Curver Base Chemicals Others 1,75 Base Chemicals & Materials & Materials 1,75 1,65 1,65 1,65 Others Others Materials 1,50 1,45 1,50 Nutrition Pharma 1,25 Polymer Interm. & Composite Resins Nutrition 1,00 2011 2012 2013 2014 2015 2016 1995 2000 2005 2010 2016 Stable preferably rising dividend for DSM’s shareholders Page 8Strong performance reflected in higher dividend and share price Dividend per ordinary DSM share - € DSM vs. Peers, AEX & DJS Chemicals 140 2,00 5,0% 1,75 120 1,75 4,0% 1,65 1,65 1,65 1,50 1,45 1,50 3,0% 100 1,25 2,0% 80 1,00 1,0% 60 DSM DSM Peer group Dividend yield (based on average share price) AEX DJS Chem. DSM’s shareholder value 30% (€3bn) higher since announcement of Strategy 2018, outperforming markets Page 9 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-17Strong performance reflected in higher dividend and share price 2016 200 €65 175 150 Dividend €1.75 +90% 125 €35 100 +75% 75 2006 50 25 DSM AEX 0 Dividend €1.00 Page 10 May-07 May-08 May-09 May-10 May-11 May-12 May-13 May-14 May-15 May-16Strategy 2018: driving profitable growth Through science-based, sustainable solutions. Page 11DSM’s strategy well aligned with UN Sustainable Development Goals NUTRITION CLIMATE & ENERGY CIRCULAR & BIO-BASED ECONOMY Page 12Nutrition at a glance (2016) World leading Addressing Sales Global presence €5.2 billion supplier health of Facilities on all & full range wellness, continents of food security, Adj. EBITDA nutritional 13,000 global €931 million ingredients employees shifts  DSM is the leading supplier of vitamins, omega’s, carotenoids, nutritional ingredients, UV filters, premixes and nutritional solutions for human and animal nutrition & health. It has the most complete feed enzymes portfolio worldwide. DSM also supplies aroma intermediates  Its customers are global, regional and local feed and premix companies, animal protein producers and food, beverage, infant nutrition, dietary supplement, pharmaceutical, personal care and flavor & fragrance companies Page 13Examples nutritional products of DSM Vitamins Carotenoids: Nutritional Lipids: Feed Enzymes: are essential Essential Omega-3 and –6 play a Solutions developed nutrients required antioxidants critical role in proper to meet challenges of for growth and well- increasing brain function, vision global livestock being. DSM has all 13 performance and process, immune and farming. Reducing Vitamins including A, consistent inflammatory costs by improving D, E, K, C, all B pigmentation a/o responses and feed conversion and vitamins, folic acid for salmon, eggs hormone-like animal health and pantothenic acid molecules Page 14More examples of nutritional products Food & Beverage Enzymes: Minerals for animals Yeasts, cultures and natural proteins that act as that are needed by the probiotics: catalysts for biochemical body in very small amounts providing taste and reactions, used in dairy, that cannot be made by texture and adding baking, beverages, oil & living organisms specific health benefits fats and grain processing Page 15Materials at a glance (2016) World Addressing Sales Global presence €2.5 billion leading safety, supplier Facilities on fuel efficiency, of emission- all continents high reduction, Adj. EBITDA performance 4,500 health, €435 million materials employees comfort  DSM has developed a portfolio of specialized performance materials with higher value added businesses, serving the global automotive, electrical & electronics, building & construction, food-packaging, high-performance textiles & life protection end-markets  DSM is a leading provider of sustainable innovations, meeting demands for greater energy efficiency, safer materials and improved environmental performance Page 16Examples of materials of DSM DSM Engineering DSM Dyneema is the Innovative resins for High-performance Plastics is supplier of global supplier of sustainable coatings UV-curable optical ® high performance Dyneema , the systems, including: fiber materials for engineering world’s strongest waterborne resins, high-speed fiber thermoplastics as fiber™, used for powder resins and networks connecting ® ® Stanyl , ForTii , medical sutures, 100% UV curable the world ® ® ExoPaxx , Akulon , fishing, aquaculture resins ® ® Arnite , Xytron , used nets, ropes, slings, in automotive, cut-resistant gloves, electronics, vehicle & personal specialized industries ballistic protection and food packaging Page 17Innovation is our passion  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 ® Maxarome replacing salt,  DSM recognized as top innovator in external benchmarks reducing health risks, whilst maintaining a good taste 30 Innovation Sales (as % of total sales) 20 10 0 2010 2016 2018 Bio-based Coating Resins Aspirations Innovation strongly contributes to DSM’s growth Page 18Three attractive innovation platforms DSM Biomedical DSM Bio-based Products DSM Advanced Surfaces & Services Smart coatings and Innovative materials that deliver more advanced Advanced enzymes and surface technologies to clinical procedures and yeast platforms: enabling boost performance in the improved patient advanced bio-energy and solar industry outcomes bio-based chemicals Bringing Life Sciences and Materials Sciences competences together Page 19Stepping-up sustainability aspirations Brighter Living Solutions 65% DSM’s profitable solutions should be better for people and planet Page 20