Press release

1) Underlying (business) is defined in this press release as the performance measures sales and Adjusted EBITDA, corrected for DSM’s best estimate of the temporary vitamin effect. See page 8 of the PDF for further details.
2) Subject to AGM approval.
3) Adjusted EBITDA is an Alternative Performance Measure (APM) that reflects continuing operations.

“This has been again a record year in which we successfully completed Strategy 2016-2018, outperforming our ambitious financial and sustainability targets. We have created a strong platform of solution-led, higher value specialty products in Nutrition, Health & Sustainable Living. This has positioned the company well to drive continued above market organic growth and deliver further improvement in profitability, shareholder return and sustainability as we execute Strategy 2021 Purpose led, Performance driven.

"During the fourth quarter, Nutrition performed well once again, with continued good business conditions, whilst Materials delivered solid results, despite softness in some of its end-markets.

"Reflecting excellent underlying results for the financial year and confidence in our future earnings growth profile, as also reflected in our 2019 outlook, we propose an increase in the 2018 full year dividend of about 25% to €2.30 per share, in line with guidance given at our 2018 Capital Markets Day.

"In addition, having built a resilient portfolio with future upside from our large innovation projects, we are confident about our earnings prospects and cash generation. Based on this and our strong balance sheet we are pleased to announce a €1 billion share buy-back program which also increases capital efficiency while still retaining financial flexibility to deliver on our growth plans.”

1) Underlying (business) is defined in this press release as the performance measures sales and Adjusted EBITDA, corrected for DSM’s best estimate of the temporary vitamin effect. See page 8 of the PDF for further details.
2) Adjusted EBITDA is an Alternative Performance Measure (APM) that reflects continuing operations.

Underlying (business) is defined in this press release as the performance measures sales and Adjusted EBITDA, corrected for DSM’s best estimate of the temporary vitamin effect due to exceptional supply disruptions in the industry in the first nine months, providing estimated additional sales of €415 million and a corresponding Adjusted EBITDA of €290 million.

These supply disruptions started already in November 2017. While we did not quantify an additional benefit in Q4 2017, since then we have estimated a contribution of €40 million to total sales and a corresponding Adjusted EBITDA impact of €15 million. In the explanation of the sales and Adjusted EBITDA growth of total Nutrition and Animal Nutrition, comparisons are made versus the reported Q4 2017 figures, as well as the figures excluding these temporary vitamin effects.

1) Including temporary vitamin effect
2) ROCE from underlying business for the year 2018 is estimated at 13.3%
3) Over Adjusted taxable result
4) Including result attributed to non-controlling interest
5) Operating Cash flow from Underlying business is estimated at €1,126m
6) Cash, net of customer funding, investment grants and excluding financial leases
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.