Dividend policy Koninklijke DSM N.V. (DSM)
The DSM Annual General Meeting of Shareholders passed a resolution on 9 May 2018 to declare a dividend for the financial year 2017 of €1.85 per ordinary share, an increase of €0.10 from the €1.75 paid for 2016. An interim dividend of €0.58 per ordinary share was paid in August 2017, thus the final dividend amounted to €1.27 per ordinary share.
This final dividend of €1.27 was paid out in cash or in the form of ordinary shares at the option of the shareholder. Dividend in cash was paid after deduction of 15% Dutch dividend withholding tax. Stock dividend was paid out from DSM’s own treasury shares, and subject to the conditions as stated in the Notes to the AGM agenda. The ex-dividend date on Euronext Amsterdam was 11 May 2018 and the record date was 14 May 2018.
A maximum of 40% of the total dividend amount was available for stock dividend. Shareholders had from 15 May until 28 May 2018 (15:00 CET) to indicate if they wished to receive their dividend in the form of ordinary shares, otherwise it would be distributed in cash. DSM announced on 29 May 2018 that shareholders wished to receive a distribution in stock for 40.4% (rounded) of the total dividend. The shareholders who had opted for a distribution in stock received stock dividend on a pro-rata basis (rounded 0.9893), with the remainder paid out in cash (less 15% dividend withholding tax).
The Exchange Ratio of the final dividend over 2017, as announced on 29 May 2018, amounted to 1 new ordinary DSM share as stock-dividend for every 69.0373 existing stock-entitled ordinary shares. Based on the average weighted price of 22 May up to and including 28 May 2018 (VWAP = 87.6774), 1/69.0373 share represented a value of €1.27, which was virtually equal to the gross dividend in cash of €1.27 per ordinary share.
Both the cash dividend and stock dividend were made payable to shareholders on 1 June 2018.
Interim Dividend 2018
At DSM’s Strategy Update on 20 June 2018, it was announced that DSM will propose to the DSM Annual General Meeting of Shareholders, to be held on 8 May 2019, to declare a total dividend of €2.30 per ordinary share over the financial year 2018. This increase of about 25%, is already reflected in the interim dividend over 2018. The 2018 interim dividend represents about one third of the above mentioned €2.30 total dividend per ordinary share over 2018 and is rounded to €0.77 per ordinary share to be paid as interim dividend on 24 August 2018.
This interim dividend of €0.77 will be paid out in cash or in the form of ordinary shares at the option of the shareholder. Dividend in cash will be paid after deduction of 15% Dutch dividend withholding tax. The ex-dividend date on Euronext was 3 August 2018 and the record date was 6 August 2018.
A maximum of 40% of the total dividend amount is available for stock dividend. If shareholders in total wish to receive in aggregate a distribution in shares which exceeds this maximum percentage of the total dividend, those shareholders who have opted for distribution in the form of shares will receive their stock dividend on a pro rata basis, with the remainder being distributed in cash (after deducting 15% Dutch dividend withholding tax).
Shareholders had from 7 August until 20 August 2018 (15:00 CET) to indicate - through their bank or broker - to ABN AMRO Bank N.V., if they wished to receive their dividend in the form of ordinary shares, otherwise it will be distributed in cash. The conversion rate between the cash dividend and the stock dividend is determined on 21 August 2018 after the close of trading on Euronext Amsterdam.
21 August 2018: Announcement of scaling down ratio and exchange ratio interim dividend 2018
Scaling down ratio
Royal DSM announces that shareholders wish to receive a distribution in stock for 40.7079% of the total dividend. Given the maximum of 40% available for stock dividend, the shareholders who have opted for a distribution in stock will receive stock dividend on a pro-rata basis: 0.98261 (= 40/40.7079 part), with the remainder being paid out in cash (less 15% dividend withholding tax).
The exchange ratio is 116.7601 and is based on the volume weighted average price (VWAP) of all ordinary shares in DSM traded at Euronext on 14 August 2018 09:00 CET up to and including 20 August 2018, until end of the business day. The calculated VWAP is = EUR 89.9053.
Based on the VWAP, 1/116.7601 share represents a value of EUR 0.77, which is virtually equal to the gross dividend in cash of EUR 0.77 per ordinary share.
Payment of the cash dividend on the ordinary shares and delivery of ordinary shares, with settlement of fractions in cash, if required, will take place as of 24 August 2018, based on the number of dividend rights delivered.
Paying agent: ABN AMRO Bank N.V., tel: +31 20 344 2000, fax: +31 20 628 8481, email.