DSM, the Netherlands based Life Sciences and Performance Materials company, will be hosting its annual Chemical Analysts Conference today and tomorrow at Castle Vaalsbroek (in the Netherlands). This conference for financial analysts will be webcast via the DSM website.

Programme
In presentations on Thursday, 23rd September Peter Elverding and Henk van Dalen of DSM’s Managing Board will discuss the progress that has been made towards the completion of DSM’s Vision 2005 strategy, and further actions that will take place in the context of the strategy.

Among the conclusions that will be drawn are the fact that DSM has already reached several of the goals laid out in Vision 2005.  DSM has successfully transformed its product portfolio, whilst strengthening the financial solidity of the company.  Despite far from favourable external conditions, DSM has realized, on average, an autonomous volume growth of the ongoing activities at twice the growth rate of GDP in its markets. Stability of the earnings profile improved considerably, as did the appreciation by the stock markets of DSM’s shares. Further improvement of the profitability is a high priority for DSM in 2004 and 2005.

Presentations on Friday morning will focus on the state of affairs and the future prospects at DSM Melamine, DSM Nutritional Products, and DSM Engineering Plastics.

Trading update
Regarding the current business climate Peter Elverding will give the following trading update. “When we issued our positive outlook statement in July regarding the overall results development, there was some reason for caution. Due to usual seasonal patterns, sales volumes in the second half of the year could be slightly lower than the very good level in the first six months. Furthermore, the sharp increase in raw material prices were another reason for concern, as they could lead to some temporary pressure on margins.

Based on the results now available from July and August, a relatively positive picture arises. Sales volumes in these months were good, and market conditions enabled DSM to protect its margins reasonably successfully. Regrettably, market conditions for anti-infectives did not improve, but DSM is taking actions to improve results at DSM Anti-Infectives. All in all, DSM expects at this moment the operating result in the third quarter of this year to be close to the level of the operating result from the second quarter. This reinforces our positive outlook formulated in July for 2004 as a whole, being: DSM expects that its profit on ordinary activities after taxation for the whole of 2004 will be substantially higher than in 2003.”

Savings target of the VITAL project raised to EUR 200 million
In his presentation, Feike Sijbesma, Member of DSM’s Managing Board, will give an overview of the good progress made thus far with the integration and transformation of DSM Nutritional Products. Implementation of the second phase of the VITAL project has started recently. In conjunction with this, the total savings target to be accomplished with the VITAL project will be raised from over EUR 150 million to over EUR 200 million by 2005/06.

Investment program to boost capacities of DSM Engineering Plastics
Jos Goessens, Director of DSM Engineering Plastics, will announce that engineering has started to double production capacities for its successful key product Stanyl by 2007, after completion of the current expansion of 20%, which will come on stream later this year. This will also involve expansion of the DAB (DiAminoButane) production capacities at the Chemelot site in Geleen, to provide the required additional volume of this essential feedstock. The preferred location for the new Stanyl plant is Geleen (the Netherlands), integrating it with the existing plant. However, an alternative site in China is being evaluated too.

Webcast and conference handouts
The presentations of this conference and the Q&A sessions will be webcast and can be followed via: http://www.kpnwebcast.com/diensten/DSM/230904/eng/index.htm.

After the conference the full presentations (sheets plus text) will be put on the DSM website as well (http://www.dsm.com/en_US/html/invest/presentations2004.htm).