Post on 10-Aug-2020
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%