Company strategy
DSM has transformed itself into a fully-fledged Life Sciences and Materials Sciences company which is now entering a new era in which we will grow ‘the new DSM’.
Global trends
Our strategy for the next few years is to use our unique capabilities in Life Sciences and Materials Sciences to address three key global societal trends: Global Shifts, Climate & Energy and Health & Wellness. The main underlying drivers of these trends are the world’s population growth and increasing life expectancy on the one hand, and increasing economic prosperity in the high growth economies on the other. The three trends are creating new needs for millions of people across the globe. We aim to meet these needs by providing innovative and sustainable solutions.
Four growth drivers
To ensure that this strategy will generate maximum sustainable and profitable growth for 'the new DSM', we will use four mutually-reinforcing growth drivers:
High Growth Economies – from ‘reaching out’ to being truly global
All the evidence indicates that fast-growing economies such as China, India, Brazil and Russia and other emerging areas will be the major global growth engines for the world economy over the next decade. Over the last few years we have actively pursued growth opportunities in high growth economies across all businesses, and built a strong local presence in different regions. Our ambition now is to broaden this approach and accelerate growth in multiple economies and regions. By 2015 we expect sales from high growth economies to grow towards 50% of our total net sales. Over 70% of our growth in the period to 2015 is expected to come from high growth economies.
Innovation – from ‘building the machine’ to doubling innovation output
Building on our innovation track record of the past few years, we aim to take value creation through innovation to the next level. This means we will increase the speed of innovation even further, set a new, stretching target for innovation-related sales as a percentage of overall sales, and formulate an ambitious growth perspective for the Emerging Business Areas, which we have turned into strong, long-term growth platforms that optimally combine our competences in Life Sciences and Materials Sciences.
Sustainability – from responsibility to business driver
From an internal value and a tool for making a responsible contribution to society, sustainability has become a strategic business driver. We believe that sustainability will be the key differentiator and value driver over the coming decades and that we are uniquely positioned to capture new value-creating opportunities. This is for example reflected in the fact that by 2015 we want ECO+ products to account for at least 80% of our innovation sales and towards 50% of our total running business sales (compared to an estimated 34% in September 2010).
Acquisitions & Partnerships – from ‘portfolio transformation’ to ‘driving focused growth’
Having completed our portfolio transformation, we are now focusing on ‘growing the new DSM’. Acquisitions & partnerships are an important tool for achieving this. They will enable us to strengthen the competencies and market positions of the Life Sciences and Materials Sciences businesses that form the new core of DSM.
Each of these four strategic growth drivers is important in its own right but they also reinforce one another. By combining them, we will be able to generate a greater number of compelling, high-potential business opportunities.
Strategic and financial targets 2013-2020
| Profitability targets 2013 | |
|---|---|
| EBITDA: | €1.4 - 1.6bn |
| ROCE: | > 15% |
| Sales targets 2015 | |
|---|---|
| Organic sales growth: | 5%-7% annually |
| China sales: | from $1.5bn to more than double > $3bn |
| High Growth Economies sales: | from - 32% towards 50% of total sales |
| Innovation sales: | from - 12% to 20% of total sales |
| EBA aspirations 2020 | |
|---|---|
| Emerging Business Areas sales: | >€1bn |
Links & Downloads
- DSM in motion: Driving focused growth by Feike Sijbesma (PDF, 4.06MB)
- DSM in motion: Driving focused growth by Rolf-Dieter Schwalb (PDF, 2.16MB)
- Nutrition: Continued value growth by Stephan Tanda (PDF, 1.24MB)
- Pharma: Leveraging partnerships for growth by Stephan Tanda (PDF, 1.32MB)
- Materials Sciences by Nico Gerardu (PDF, 1.83MB)
