Sustainability at DSM:

Brighter Living Solutions concept: Eco+ & People+

DSM Food SpecialtiesJacky BrunetSADST South Africa, May 2016

Content

• DSM and Sustainability• The sustainability focus in the dairy

industry• Maxiren XDS case

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

DSM at a glance (2015)

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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 rankingDow Jones

Sustainability Index

* Including 2015 pro-forma and pro-rata (annualized) sales & number of employees (ultimo 2015) of non-consolidatedAssociates & Joint Ventures (for sales this is mainly Patheon, DSM Sinochem Pharmaceuticals and ChemicaInvest)

Africa: 73 employees

Global presence

Latin America: 2,021 employees

North America:3,151 employees

Europe: 9,298 employees

Africa & Oceania: 252 employees

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Continuing Operations as reported ultimo March 2016

Rest of World

Western Europe

High GrowthEconomies

North America

43%

6%28%

23%

Sales by destination 2015

Asia: 6,028 employees

* Excluding our non-consolidated Associates & Joint Ventures

Chart1

High Growth Economies

RoW

Western Europe

North America

Sales

43

6

28

23

Sheet1

High Growth EconomiesRoWWestern EuropeNorth America

Sales4362823

Growth driven by global megatrends

Population growth

Wealth increase

Resources constraints

Sustainability concerns

Urbanization driveHealthcare issues

Energy concernsFood composition

Aging population

MaterialsNutritionHealth

Global Shifts Climate & EnergyHealth & Wellness

Focus on DSM’s Dairy solutions• We support all major dairy markets (Cheese, Milk, Whey, Fresh Dairy)

• One of the broadest portfolios of coagulants and other enzymes, cultures, probiotics,

preservation systems & antibiotic residue tests

• Global leader in lactase solutions

CulturesDelvo®CheeseDelvo®FreshDelvo®Yog

EnzymesFromase®Maxiren®Maxilact®Piccantase®Accelerzyme®

TestsDelvotest®

PreservationDelvo®CidPack-Age®Delvo®CoatDelvo®Nis

Content

• DSM and Sustainability• The sustainability focus in the dairy

industry• Maxiren XDS case

Page 9

SustainabilityThe picture can't be displayed.

We cannot be successful, nor canwe call ourselves successful, in a

society that fails

Feike SijbesmaChief Executive Officer

DSM„We care for consumersWe provide the best ingredients produced in the most sustainable way.

We care for our peopleWe make continuous efforts to improve the health and safety of our employees.

We care for the environmentWe invest and work on reducing our use of raw materials and energy, as well as our emissions and wastes.

We care for othersWe aim for business activities and products that empower sustainable development. We support humanitarian actions and provide our expertise to help tackle malnutrition in the world.

The Dow Jones Sustainability Indices (DJSI) launched in 1999, are a family of indices evaluating the sustainability performance of the largest 2,500 companies listed on the Dow Jones Global Total Stock Market Index. They are the longest-running global sustainability benchmarks worldwide and have become the key reference point in sustainability investing for investors and companies alike.

The DJSI is based on an analysis of corporate economic, environmental and social performance, assessing issues such as corporate governance, risk management, branding, climate change mitigation, supply chain standards and labor practices. The trend is to reject companies that do not operate in a sustainable and ethical manner

DSM was named among the worldwide leaders in the Materials industry group. Since 2004, DSM has been named the leader in this sector six times and also named among the top leaders six times

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Dow Jones Sustainability Index

https://en.wikipedia.org/wiki/Sustainabilityhttps://en.wikipedia.org/w/index.php?title=Dow_Jones_Global_Total_Stock_Market_Index&action=edit&redlink=1https://en.wikipedia.org/wiki/Risk_management

Why we, as DSM, focus on Sustainability ?

• Because we cannot be successful, nor can we call ourselves successful, in a society that fails

• Because: Small ingredients can have a big impact.

• Because choosing the right ingredient enables to have positive impact on the environment protection as well as on lives of people.

Profitable solutions with measurably better environmental impact than the

mainstream reference solutionEco drivers: resources, land use, water,

energy and reduction of emissions

ECO+

Profitable solutions with a measurably better impact on lives of people than

the mainstream reference solution.People drivers: health, well-being, working conditions and community

development

PEOPLE+

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Small ingredients. Big impact on products and reputation

You can never buy back your reputationif something goes wrong

166 MT of cheese

400 000 Yogurts

50 MT of Yogurts

1 kg Pure Ez coagulant

10 kg ofCultures

100 000Eq Cheese consumers

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Ingredient issues

Cheap ingredients may not be so cheap after all

Consumers react

Safe ingredients are essentialfor you and your consumers

=

Our customers are in the middle

Small ingredients. Big impact on products and reputation

GHG efficiencyRenewable

energy

Brighter Living Solutions• Profitable solutions better for people and planet• 65% of DSM Products by 2020

Sustainable Growth Platforms

Eco+ People+

Sustainability as Business Growth Driver

Health & SafetyEngagement

Diversity

Driving Sustainable Markets

Securing Sustainable Operations Sustainable Operations in DSM• GHG efficiency improvements 45% by 2025 (1) • Renewable electricity 50% by 2025• Employee engagement favorable score 75% by 2020• Safety: Frequency recordable index 0,25 by 2020• Leading in reporting benchmarks Gold class DJSI

(1) Relative improvement as compared to baseline 2008

DSMs Sustainability AgendaBrighter Living Solutions

• Nutrition• Climate change and renewable energy• Circular and bio-based economy

Brighter Living SolutionsInnovations and products that are better for the planet (Eco+) and people (People+) based on a product life cycle approach

ECO

+

PEO

PLE+

- Standard for LCA developed with chemical sector peers and World Business Council for Sustainable Development (WBCSD) downloadable Guidance: http://www.wbcsd.org/Pages/EDocument/EDocumentDetails.aspx?ID=16329&NoSearchContextKey=true

- New standard for Product Social impact Assessment – Downloadable: Handbook: http://product-social-impact-assessment.com/

DFS: Pack-Age®, a cheese ripening solution, avoiding the need to discard cheese.

DNP: Clean cow: Feed additive increases milk production and reduces methane emissions

DAS: Solar coating, increases efficiency of solar modules

Brighter Living Solutions Examples

RESOURCES: reduced milk use and waste

EMISSIONS: reduced methane emissions from cattle

ENERGY: increased performance

DFS: Maxarome yeast extract used in Soups, dairy products and sauces, replacing salt.

HEALTH:Risk reduction of diseases: reducing blood pressure, reducing risk of cardiovascular disease.

ECO+ ECO+ECO+PEOPLE+

Content

• DSM and Sustainability• The sustainability focus in the dairy

industry• Maxiren XDS case

DSM’s contribution in the dairy value chain

50 Kg CO2 per MT of milkWith silage cultures preventing spoilage and the increase of dry matter up to 5%. This results in less silage required for the same nutritional value, and therefore a reduced carbon footprint of milk.

>30% of methane reductionClean Cow, an additive to cow feedwith no negative impact on animal welfare, performance, or the amount of feed they consume.

Up to 9% CO2 reduction With proprietary cultures and enzymes reducing protein and therefore milk input in yoghurt or a rennet requiring less milk to produce the same amount of cheese

1% waste reduction With bio-protective cultures preventing food waste andreplacing conventional preservatives

Up to 118 KT of CO2 saving With Delvotest preventing milk waste

1 kg of milk = 1,65 kg CO2 equivalentSource: Agri-footprint database

Life Cycle Assessment determines the environmental impacts of a product over its entire life cycle, or selected phases…

…by identifying the associated material, energy and waste flows

Raw material acquisition Manufacture Use

Waste / recycle

Raw materials & energy

Atmospheric emissions, waterborne & solid waste, co-products, other releases

Cradle to gate

Cradle to grave

Measuring our sustainability performance

LCA is a decision support tool that can be used to…

• Reduce environmental impactsFind the most significant ‘hot spots’

• Support product and steer innovationsShow the consequences of design choices

• Product marketingValue propositions and EPD’s

• Compliance and Corporate responsibilityReporting requirements, identifying future issues

Content

• DSM and Sustainability• The sustainability focus in the dairy

industry• Maxiren XDS case

Maxiren® XDS

More information: www.dsm.com/markets/foodandbeverages/en_US/products/enzymes/cheese-enzymes/maxiren.html

Societal challengeWith an increasing population, pressure on resource efficient food production is growing.

DSM solutionRennet is an essential ingredient for the production of cheese. Maxiren® XDS has a better performance and efficiency compared to conventional rennet (mainstream reference solution).

Eco+Impact on the environment: Less milk is needed to produce the same amount of cheese, resulting in a gain in resource efficiency. Also Maxiren® XDS reduces losses of premium cheese at follow up processes like cutting , slicing and shredding as it maintains the texture over shelf life. And the whey remaining after cheese production is higher in quality.

Resources

Specificity of the enzyme

Maxiren XDS : High purity and enzyme specificity

Maxiren® XDS is the most pure chymosin formulation on market

Purity of the enzyme

Specificity(Ratio milk Clotting / total Protease activity)

Non-Bovine chymosin

Maxiren® XDS

Other Bovinechymosin

Prod

uct

1

7

12

C: related to IMCU method P: hydrolysis of alpha and beta caseins which are present in the cheese matrix High C/P ratio = better quality cheese

Data are indicative but demonstrate that the specificity of Maxiren XDS is at least the same as the non bovine chymosin

Maxiren® XDS – general benefits

High purity and specificity of the enzyme

Reduced IMCU vs.

other bovinechymosins

Maintain or even improvethe texture over shelf-life

for processibility

Applicable in different cheese technologiesVarious advantagesdepending on the

technology

Versatile coagulant

Retain yourwhey value

Process & production efficiency / functional performance

Maxiren® XDS LCA

• Investigate the environmental impact associated with:- Production and application of calf rennet and Maxiren XDS to produce

1kg cheese

- Only chymosin production and milk saving impacts are considered

• Calf stomach assumed to be waste from meat production taking no environmental burden, impacts related to transport and the rennet production process are included

• Using Maxiren XDS saves 43g of milk per kg of cheese

Maxiren® XDS LCA – environmental impact

Additional environmental impact of using Maxiren XDS®

Environmental impact reduction using Maxiren XDS®

– Production of the enzyme – Reduction in milk used in cheese production leading to:

• Fewer livestock required• Reduced feed and silage

production• Reduced fertilizer production• Reduced agricultural land

occupation impacts• Reduced carbon footprint,

particulate matter and fossil depletion impacts

Maxiren® XDS LCA – additional environmental impact of chymosin per 1kg cheese

Calf rennetMaxiren XDS

Carbon footprint – IPCC 2013 GWP 100a

Chymosin

Milk saving dueto Maxiren XDS

Maxiren® XDS LCA - conclusions

• Maxiren® XDS reduces the environmental impact of cheese production by reducing the amount of milk required

• This leads to reductions in impacts related to cattle rearing and other agricultural activities

• Milk reduction leads to a …

• 100 000 MT of cheese• 43g of Milk per kg of cheese = 4 300 000 liters of milk. = R 21 500 000

378 trips around the world in a car

177 375 trees seedlings grown for 10 years

• The dairy industry faces like any other industry important issues, such as Climate Change and Resource Scarcity impacting society and the industries.

• Sustainability is one of DSM’s strategic growth pillars. Brighter Living Solutions are products and solutions with a better impact on the planet(Eco+) or a better impact on people (People+) than competing solutions.

• The dairy industry focuses on reducing GHG emissions and water use, setting targets in optimizing the milk cycle and reducing waste.

• With life cycle assessments companies like DSM can measure the impact of dairy solutions, supporting the dairy value chain in achieving theirsustainability ambitions.

• Dairy ingredients like enzymes and cultures have a proven sustainabilitybenefit.

Conclusions

Page

Maxarome® Salt reduction

Societal challengeHigh salt intake can be linked to high blood pressure and cardiovascular disease. Cardiovascular diseases is amongst the main causes for mortality in Europe. European adults consume between 6 and 18g salt a day whereas the World Health Organisation recommends 5g a day.

DSM solutionMaxarome® is a food ingredient replacing salt whilst maintaining a good taste.

People+ Impact on the lives of people: Maxarome® contributes to lower salt levels in daily diets. Reducing salt intake is one of the easiest ways to reduce high blood pressure and risks of stroke, cardiovascular and kidney diseases.

More information: www.dsm.com/content/markets/foodandbeverages/en_US/products-overview/prod-maxavor.html

Health Comfort & Well-being

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Societal challengeLivestock are responsible for methane emission, a GHG that causes global warming.

DSM solutionCleanCow, a feed additive solution under development for reducing the environmental impact of milk and beef production and with the potential to improve performance, like increased milk yield, increased body weight gain or better feed efficiency.

Eco+Impact on the environment: Reduces methane emissions by min. 25-30% in vivo.

CleanCow

More information: www.dsm.com/corporate/science/competences/chemical-sciences/project-clean-cow.html

Emissions

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Societal challengeFossil fuels have a negative impact on climate. Therefore, solar power is a prime source of future energy provision.

DSM solutionDSM develops material concepts that increase the efficiency of solar modules, bringing down the cost of solar energy and helping to accelerate the penetration of it. One of our solutions is the leading anti-reflective (AR) coating that minimizes reflection of light, boosting the cost/performance ratio of solar panels: Same sun, More power™.

Eco+Impact on the environment: DSM’s AR coating enables a power gain of up to 4% over uncoated modules. Due to its smooth closed surface, it is easy to clean and it has outstanding durability.

Anti-reflective solar glass coating technology

More information: www.dsm.com/solar

Energy

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Pack-Age®Societal challengeWith an increasing population, pressure on resource efficient food production is growing.

DSM solutionPack-Age®, a cheese ripening solution, allows cheese producers to tackle waste, cost and environmental impact by avoiding the need to discard cheese.

Eco+Impact on the environment: Compared to conventionally coated and ripened cheese, our customers see yield improvements of up to 10% through a combination of reduced moisture loss, lower wastage and reduced milk use. And as Pack-Age® is clean label, no further ingredients are needed to preserve the cheese from mold during ripening.

More information: www.dsm.com/markets/foodandbeverages/en_US/products/preservation/pack-age.html

Resources

Slide Number 1ContentMission�DSM at a glance (2015)Global presenceGrowth driven by global megatrendsFocus on DSM’s Dairy solutionsContentSustainabilityThe Dow Jones Sustainability Indices (DJSI) launched in 1999, are a family of indices evaluating the sustainability performance of the largest 2,500 companies listed on the Dow Jones Global Total Stock Market Index. They are the longest-running global sustainability benchmarks worldwide and have become the key reference point in sustainability investing for investors and companies alike.��The DJSI is based on an analysis of corporate economic, environmental and social performance, assessing issues such as corporate governance, risk management, branding, climate change mitigation, supply chain standards and labor practices. The trend is to reject companies that do not operate in a sustainable and ethical manner��DSM was named among the worldwide leaders in the Materials industry group. Since 2004, DSM has been named the leader in this sector six times and also named among the top leaders six timesWhy we, as DSM, focus on Sustainability ? Small ingredients. Big impact on products and reputationSlide Number 13DSMs Sustainability Agenda�Brighter Living Solutions �Brighter Living Solutions�Innovations and products that are better for the planet (Eco+) �and people (People+) based on a product life cycle approach�Brighter Living Solutions ExamplesContentSlide Number 18Life Cycle Assessment determines the environmental impacts of a product over its entire life cycle, or selected phases…LCA is a decision support tool that can be used to…ContentMaxiren® XDS�Slide Number 23Maxiren® XDS – general benefits �Maxiren® XDS LCAMaxiren® XDS LCA – environmental impactMaxiren® XDS LCA – additional environmental impact of chymosin per 1kg cheeseMaxiren® XDS LCA - conclusionsConclusions�Slide Number 30Maxarome® Salt reduction�CleanCow Anti-reflective solar glass coating technology �Pack-Age®�