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DSM new presentation of accounts as from Q4 2016

Heerlen, NL, 14 Feb 2017 08:00 CET

Royal DSM, a global science-based company active in health, nutrition and materials, is updating the way in which its financial results are presented, starting with the Q4/full-year results for 2016, to be published on Wednesday 15 February 2017. The update follows recent changes to accounting and reporting guidelines in Europe.  

In presenting and discussing DSM’s financial position, operating results and cash flows, DSM (similar to many other publicly listed companies) uses certain alternative performance measures (‘APMs’) not defined by IFRS. These APMs are used in order to provide important measures of DSM’s business development and management performance, and should be used as supplementary information in conjunction with IFRS measures.

In light of the European Securities and Markets Authority (ESMA) guidelines on APMs, DSM has updated the way these APM’s are presented. As a consequence, DSM will no longer use the term ‘Exceptional Items’. Henceforth, material items of profit or loss that management deems necessary to adjust to measure operational performance will be referred to as ‘APM Adjustments’, resulting in the APMs ‘Adjusted EBITDA’ and ‘Adjusted net profit’ in line with common practice.

The full update of DSM’s change in presentation will be reflected in the notes to the Q4/full-year 2016 press release. A full reconciliation of the main Alternative Performance Measures to IFRS performance measures will also be given.

DSM is also updating the way Nutrition results are presented. The sales of the business group DSM Nutritional Products will be presented in four reporting units instead of the current three. The new units will be Animal Nutrition & Health, Human Nutrition & Health, Personal Care & Aroma Ingredients, and Other. As a result, the aroma intermediates business, which was reported in Human Nutrition & Health, will now be reported in Personal Care & Aroma Ingredients. Furthermore, the pharma and custom manufacturing & services activities will be reported under Other. These activities were until now reported mainly in Animal Nutrition & Health. The change in presentation has no consequences for the total sales of Nutrition.

See below and/or the annex for the new presentation of sales of the businesses for Q1-Q3 2016. In line with previous reporting, sales details will continue to be provided for the Nutrition cluster, as well as for the main business units Animal Nutrition & Health and Human Nutrition & Health, on a quarterly basis. For the other units, overall sales will be reported on an annual basis.

in € million Q1 20161 Q1 20151 % Change1 Q1 20162 Q1 20152
% Change2
Sales - Continuing Operations 1,913 1,886 1% 1,913 1,886 1%
Nutrition 1,250 1,199 4% 1,250 1,199 4%
ANH 554 574 -3% 540 556 -3%
HNH 508 452 12% 467 412 13%
in € million Q2 20161 Q2 20151 % Change1 Q2 20162 Q2 20152 % Change2
Sales - Continuing Operations 1,994 1,965 1% 1,994 1,965 1%
Nutrition 1,295 1,247 4% 1,295 1,247 4%
ANH 610 572 7% 598 555 8%
HNH 507 502 1% 467 461 2%
in € million Q3 20161 Q3 20151 % Change1 Q3 20162 Q3 20152 % Change2
Sales - Continuing Operations 1,998 1,945 3% 1,998 1,945 3%
Nutrition 1,303 1,253 4% 1,303 1,253 4%
ANH 633 593 7% 615 577 6%
HNH 497 483 3% 454 439 4%
in € million YTD Q3 20161 YTD Q3 20151 % Change1 YTD Q3 20162 YTD Q3 20152 % Change2
Sales - Continuing Operations 5,905 5,796 2% 5,905 5,796 2%
Nutrition 3,848 3,699 4% 3,848 3,699 4%
ANH 1,797 1,739 3% 1,753 1,688 4%
HNH 1,512 1,437 5% 1,388 1,312 6%

1) Presented in press release Q1-Q3 2016
2) New presentation

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