Why invest in DSM?

Our investor proposition

Reasons to invest in DSM

Our Purpose-led, Performance-driven strategy is our commitment to the world. We know we can create financial opportunity and do good for the planet. We have a responsibility to demonstrate how we can create value for our stakeholders, improve people's lives today and for generations to come whilst making a difference to the environment we live in.

Strategy 2018 successfully completed - outperformed on key targets:

Achievements 2016-2018

Purpose-led: People and planet

Being a purpose-led company means we place the same emphasis on delivering on our people and planet responsibilities and ambitions as we do on meeting our ambitious financial targets. 

Sustainability is core to our purpose and key to driving our future growth. By delivering science-based solutions we aim to create brighter lives for people today and for generations to come.

Achieving people and planet responsibilities and ambitions 2016 -2018

~8%

GHG absolute reduction (vs. 2016)

1.4%

Energy efficiency improvement year-on-year

41%

Purchased renewable electricity

76%

Employee engagement favorable score

19%

Female
executives

60%

Under-represented nationalities

0.33

Safety Frequency Recordable Index

62%

Brighter Living
Solutions

Performance-driven: Growth & Value

Delivering our ambitious financial targets 2016-2018

Strategy 2018 out-paced market growth and delivered double digit EBITDA growth per annum.
 

Ambitions
2015

>2-3%

Human Nutrition CAGR

>2-3%

Animal Nutrition CAGR

>2-3%

Materials CAGR

EBITDA growth

High Single Digit

ROCE GROWTH

High Double Digit bps

Achieved
2016/2018

5%

Human Nutrition CAGR

7%

Animal Nutrition CAGR

5%

Materials CAGR

13%

CAGR of underlying business

190 bps

Average Base Percentage Points

Strategy 2021: High growth defined by global megatrends

We use our key competences to address the UN Sustainable Development Goals. These provide growth opportunities in Nutrition & Health, Climate & Energy and Resources & Circularity and expand beyond the ~2.5 billion people we currently reach.


Broadest nutritional ingredients portfolio with largest premix footprint in the world, offering most complete, local, personalized nutrition solutions


Higher value, advanced materials predominantly addressing Green Products and Applications, New Mobility & Connectivity and Biomedical

Strategy 2021: Ambitious new financial targets

The current strategy has two key financial targets.

Targets 2021
 

High single-digit annual percentage annual Adjusted EBITDA increase

About 10% average annual increase in Adjusted Net Operating Cash Flow

Ambitious underpinning group targets


 

1. Sales
Above-market growth (~5%) for Group, Nutrition and Materials

2. Adjusted EDITDA margin
Nutrition >20%
Materials 18-20%

3. Working capital
Nutrition > 20%
Materials 18-20%

4. Capex
~6.5% of sales
 

5. ROCE
~1% point increase per annum
 

6. Adjusted EPS
Increase ahead of Adjusted EBITDA growth

And clear sustainability ambitions 2021/2030

We aim to continue strengthening our sustainability leadership with People and Planet targets we must achieve during the Strategy 2021 period and beyond.

30%

GHG absolute reduction (vs. 2016) by 2030

>1%/year

Energy efficiency improvement till 2030

75%

Purchased renewable electricity by 2030

>75%

Employee engagement favorable score by 2021

25%

Female
executives by 2020

60%

Under-represented nationalities by 2020

<0.25

Safety Frequency Recordable Index by 2021

>65%

Brighter Living
Solutions by 2021

Business growth
enabler

Develop and introduce new innovative sustainable solutions with focus on our Nutrition & Health, Climate & Energy and Resources & Circularity domains.

Unique global business in nutritional solutions & specialty materials

Truly global leader in nutrition over full value chain

Customer-led innovation driven by strong product portfolio & science

Key macro trends enabling nutrition growth ambitions

Business models basis for outperforming market in nutrition

Outgrowing the complete feed equivalent market through premix, innovation & B2F, leveraging its unique business model

Outgrowing the relevant market through local solutions, forward integration & i-Health expansion

Materials continues to focus on higher growth, higher margin segments

Recent market
introductions

Eubotics / Gut Health
(feed / food)

i-Health
(B2C nutrients)

New market
introductions 2019-20

Veramaris®
(Green Ocean)

Stevia
(fermentative)

Market introductions
2021-25

Plant-Based Proteins
(CanolaPRO™)

Bio-Agri
(fungicides/pesticides)

New Biomedical Products
(tissue repair/ophtalmology)

Solar
(coatings/backsheets)

Enzymes/Yeast
(1.5 - 2G ethanol)

Actamax
(biomed adhesion barrier)

New Functional Materials
(5G)

Apparel
(Dyneema® textile applications)

ForTii®
(High-Performance Polymer)

Niaga®
(Recyclable carpets, mattresses & more)

Additive Manufacturing
(3D Printing)

Expected Sales/Adjusted EBITDA in 2021 and 2025 of large projects: ~€350m/€100m rising to ~€1bn/€0.4bn

Total innovation sales (at higher margins) remain at 20% of sales

Clear priority for cash deployment with shareholder-friendly dividend policy

DSM maintains a highly disciplined financial approach to drive optimum value for stakeholders.

1. Disciplined capex for organic growth

2. Dividend policy

3. Mergers &
Acquisitions

4. Share buy-backs

Focus on nutrition



 

Stable, preferably rising

Expected average pay-out of 40/50% of adjusted (underlying) earnings

Prudent and disciplined approach

Focus on nutrition
 

To be considered in the absence of value-creating M&A

 

  • Mid-term capital structure: 1.5-2.5x net debt/Adjusted EBITDA
  • Committed to maintaining a strong investment grade credit rating

Read more

  • At a glance

    Key facts and figures about DSM, our business and our people, planet & profit performance in one overview.

  • Share center

    DSM's ordinary shares, share performance, share listings, share structure, cumulative preference shares and shareholder base.

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