Press release

DSM reports 2017 results

Heerlen, NL, 14 Feb 2018 07:00 CET

  • Strong performance in Q4, contributing to an excellent year
  • Sales up 9% to €8,632m, with 9% organic growth mainly from volume growth
  • Adjusted EBITDA up 15% to €1,445m, driven by both Nutrition and Materials
  • ROCE up 190 bps to 12.3%
  • Adjusted net profit up 36% to €706m
  • Total net profit of €1,781m, including gain on Patheon disposal of €1,250m
  • Proposed dividend increase from €1.75 to €1.85 per ordinary share
  • Full year outlook 2018 above Strategy 2018 targets

Full year Highlights

Key figures and indicators

in € million FY 2017 FY 2016 % change Volume Price/mix FX Other
Sales 8,632 7,920 9% 7% 2% -1% 1%
Nutrition 5,579 5,169 8% 7% 1% 0% 0%
Materials 2,825 2,513 12% 7% 6% -2% 1%
Adj. EBITDA1 1,445 1,262 15%        
Nutrition 1,053 931 13%        
Materials 488 435 12%        
EBITDA (cont. ops.) 1,348 1,174          
ROCE (%) 12.3% 10.4%          

1) Adjusted EBITDA (and Adjusted net profit) are Alternative Performance Measures (APMs) that reflect continuing operations.
See page 17 of PDF for definition and reconciliation

CEO statement

“We are delighted to report again an excellent year, as we significantly exceeded our Strategy 2018 targets for EBITDA, ROCE and organic sales growth. Our focus on driving above market growth while relentlessly pursuing efficiency initiatives and maintaining capital discipline continues to produce very good results in both Nutrition and Materials.

Our success comes from the ability to deliver sustainable, innovative solutions to meet our customers’ demand and help them to address end-market needs. Furthermore, we have taken next steps in embedding the organizational agility and culture that we seek within our company. We are firmly on track with our cost-reduction and efficiency improvement programs. In addition, we successfully divested our share in Patheon ahead of schedule, creating significant value. With all of these developments ahead of plan we brought forward our regular strategic review process for the period beyond 2018.

We remain relentlessly focused on improving our operational and financial performance through our growth initiatives and by completing the final stage of our improvement programs. These actions should allow us to continue our above-market growth and further improve our financial returns and capital efficiency. We expect to deliver above our Strategy 2018 targets in 2018.”

Outlook 2018

DSM expects to deliver full-year 2018 results above the targets set in Strategy 2018, with an Adjusted EBITDA growth somewhat up from high single-digit to double-digit and a ROCE growth above 100 basis points. The expected substantial negative foreign exchange effects, based on current rates, will be more than offset by a positive pricing environment in Nutrition, part of which is temporary in nature and expected to be heavily weighted towards the first half of the year.

Q4 Highlights

  • DSM reports another strong quarter
  • Sales up 8% to €2,176m, with 12% organic growth, driven by volumes and prices
  • Adjusted EBITDA up 14% to €359m
  • Nutrition: 13% organic sales growth; Adjusted EBITDA up 12%
  • Materials: 5% volume growth; Adjusted EBITDA up 13%

Key figures & indicators

in € million Q4 2017 Q4 2016 % change Volume Price/mix FX Other
Sales 2,176
2,015 8% 7% 5% -5% 1%
Nutrition 1,428 1,321 8% 9% 4% -6% 1%
Materials 693 639 8% 5% 7% -4% 0%
Adj. EBITDA1 359 315 14%        
Nutrition 267 238 12%        
Materials 119 105 13%        
EBITDA (cont. ops.) 316 270          
ROCE (%)2 12.3% 10.4%          

1) Adjusted EBITDA (and Adjusted net profit) are Alternative Performance Measures (APMs) that reflect continuing operations.
See page 17 of PDF for definition and reconciliation
2) Full year 2017

in € million FY 2017 FY 2016 % change Volume Price/mix FX Other
Sales 8,632 7,920 9% 7% 2% -1% 1%
Nutrition 5,579 5,169 8% 7% 1% 0% 0%
Materials 2,825 2,513 12% 7% 6% -2% 1%
Innovation Center 169 167          
Corporate Activities 59 71          
in € million Q4 2017 Q4 2016 % change Volume Price/mix FX Other
Sales 2,176 2,015 8% 7% 5% -5% 1%
Nutrition 1,428 1,321 8% 9% 4% -6% 1%
Materials 693 639 8% 5% 7% -4% 0%
Innovation Center 43 41          
Corporate Activities 12 14          
in € million FY 2017 FY 2016 % change Q4 2017 Q4 2016 % change
Sales 8,632 7,920 9% 2,176 2,015 8%
Adjusted EDITDA1 1,445 1,262 15% 359 315 14%
Nutrition 1,053 931 13% 267 238 12%
Materials 488 435 12% 119 105 13%
Innovation Center 9 1   4 -1  
Corporate Activities -105 -105   -31 -27  
Adjusted EBITDA margin1 16.7% 15.9%   16.5% 15.6%  
EBITDA1 1,348 1,174   316 270  
Adjusted EBIT1 957 791 21% 240 190 26%
EBIT1 846 685   199 139  
Capital Employed1 7,766 7,889        
Average Capital Employed1 7,776 7,627        
ROCE (%) 12.3% 10.4%        
Effective tax rate2 16.8% 18.3%        
Adjusted net profit1,3 706 520 36% 202 130 55%
Net profit - Total DSM
1,781 629 183% 178 87 105%
Adjusted net EPS1
3.92 2.90 35% 1.11 0.73 52%
Net EPS - Total DSM 10.07 3.52   0.98 0.48  
Operating cash flow 996 1,018 -2% 377 374 1%
Capital Expenditures4 546 475   162 170  
Net debt 742 2,070        

1) Continuing operations
2) Over Adjusted taxable result
3) Including result attributed to non-controlling interest
4) Cash, net of customer funding

In this report:
Organic sales growth’ is the total impact of volume and price/mix;
'Total Working Capital’ refers to the total of ‘Operating Working Capital’ and ‘non-Operating Working Capital’

The complete version of this press release with accompanying financial statements and the Presentation to Investors are below in PDF format.

For more information

Lieke de Jong-Tops

Senior Communications Manager
+31 45 578 2420
media.contacts@dsm.com

Dave Huizing

Vice President Investor Relations
+31 45 578 2864
investor.relations@dsm.com

Lieke de Jong-Tops

Senior Communications Manager
+31 45 578 2420

Dave Huizing

Vice-President Investor Relations
+31 45 578 2864

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