Factbooks
An introduction for investors and analysts to DSM, our Nutrition, Materials and Innovation Center clusters and our businesses.
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
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)
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
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Financial results & presentations
Instant overview of the financial results, presentations, updates & AGMs and all DSM's financial and regulatory press releases from the last decade.
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Share center
DSM's ordinary shares, share performance, share listings, share structure, cumulative preference shares and shareholder base.