DSM in motion: driving focused growth Nico Gerardu Member of the Managing Board Nomura Chemicals Conference Rome, 22 March 2012
Safe harbor statement This present at ion may cont ain forward-looking st at ement s wit h respect t o DS M’ s fut ure (financial) performance and posit ion. S uch st at ement s are based on current expect ations, estimates and proj ections of DS M and informat ion current ly available to t he company. DS M caut ions readers t hat such st at ement s involve cert ain risks and uncert aint ies t hat are difficult t o predict and t herefore it should be underst ood t hat many factors can cause actual performance and position to differ materially from t hese st at ement s. DS M has no obligat ion t o updat e t he st at ement s cont ained in t his present at ion, unless required by law. The English language version of t his document is leading. A more comprehensive discussion of the risk factors affect ing DS M’ s business can be found in t he company’ s lat est Annual Report , which can be found on t he company's corporate websit e, www.dsm.com Page 2
DSM at a glance 2011, continuing operations (*) per cluster Sales Polymer • Net sales € 9,048m Intermediates 21% • EBITDA € 1,296m 39% • Net Profit € 594m Nutrition • ROCE 14.0% Performance 32% Materials 8% • Capital Employed € 6,581m Pharma • Capex incl acquisitions € 1,508m EBITDA (*) per cluster • R&D € 476m Polymer Int ermediates • Workforce 22,224 26% 52% Nutrition • Leader in sustainability Performance No 1 in 6 out of 8 years DJS I 20% Materials 2% Pharma * Innovat ion Cent er and Corporat e Act ivit ies relat ed Sales & EBITDA weight ed dist ribut ed over clust ers S lide 3
Overview • Operational performance 2011 • S trat egic Progress 2011 • Out look 2012
Highlights Q4 / FY 2011 DSM reports another strong year and increases dividend • Q4 EBITDA from cont inuing operations up 6% to €293 million • Full year EBITDA from continuing operat ions increased 12% t o €1,296 million • Life Sciences delivered furt her EBITDA growt h t hrough Nut rit ion • Mat erials S ciences posted a strong year with record Polymer Int ermediates results • Good st rat egic progress wit h Mart ek acquisit ion and j oint vent ure wit h S inochem • EPS (before except ional it ems, cont inuing operat ions) up 22% t o €3.53 • Dividend increase by €0.10 to €1.45 per ordinary share proposed for 2011 • Caut iously opt imist ic out look; on t he way t o achieve 2013 t arget s Page 5
Results Q4 2011 & FY 2011 - Key figures � % � % Q4-2011 Q4-2010 (€ million) FY-2011 FY-2010 Cont inuing operations before except ional it ems: 2,227 2,082 +7% Net S ales 9,048 8,176 +11% ** ** 293 276 +6% EBITDA 1,296 1,161 +12% 166 170 -2% EBIT 866 752* +15% 0.71 0.63 +13% EPS (€) 3.53 2.89 + 22% Total DS M before exceptional items: 2,227 2,202 +1% 9,193 9,050 +2% Net S ales EBITDA 293 290 +1% 1,325 1,278 +4% Total DSM including exceptional items: 85 149 -43% 814 507 +61% Net profit EPS (€) 0.53 0.89 -40% 4.86 3.03 +60% * of which €9 million (full year €33 million) IFRS pension adj ustment **10% (full year 15% ) if IFRS pension adj ustment is excluded Page 6
EBITDA –DSM continuing business EBITDA (€ million) 2011 2010 2009 (*) 2008 (*) Nutrition 735 684 655 585 Pharma 36 61 91 150 Performance Materials 293 283 174 266 Polymer Int ermediat es 380 223 36 43 Innovat ion Center (*) -57 -49 (**) (**) Corporat e Act ivit ies (*) -91 -41 -122 -80 DSM core business 1,296 1,161 834 964 * 2008 & 2009 not rest at ed for changes in pension account ing and corporat e research cost s ** 2008 & 2009 Innovation Center was reported in Corporate act ivities Page 7
On track towards achieving ambitious targets Profitability targets 2013 2011 EBITDA € 1.4 - 1.6bn € 1,296m ROCE >15% 14% Sales targets 2015 2011 Organic sales growt h 5% - 7% annually 11% China sales from US $ 1.5bn to >US $ 3bn US $ 2bn High Growt h Economies from ~32% t owards 50% of tot al sales 39% Innovat ion from ~12% t o 20% of tot al sales 18% EBA aspiration 2020 2011 EBA sales >€ 1bn Good progress S lide 8
Strong organic sales growth 20% 10% Target 5-7% Target 5-7% 0% 2007 2008 2009 2010 2011 -10% -20% Page 9
Relatively resilient, increasing profitability EBITDA (€ m) and EBITDA margin % , continuing operations 1500 14,3% 14,2% 1000 14,6% 14,2% 12,4% 500 0 2007 2008 2009 2010 2011 Page 10
Solid financial position Working Capital (€ m) Net debt (€ m), Cash & Gearing Working Capit al OWC/ Sales % Net Debt Cash 3000 3000 2500 2500 Gearing 25.1% 26% 2000 2000 OWC target : 20.2% 1500 1500 19% 1000 1000 Gearing 500 500 5% 0 0 2008 Q3 2011 Q4 2008 Q3 2011 Q4 Page 11
Dividend increased for the 2 nd consecutive year • Dividend policy “ stable and preferably Dividend per ordinary share (€) rising” € 1.50 • Proposal to AGM (May 2012): €0.10 increase to €1.45 (7 % increase) – € 0.45 int erim dividend € 1.25 – € 1.00 final dividend • Payable in cash or ordinary shares € 1.00 € 0.75 € 0.50 '04 '05 '06 '07 '08 '09 '10 '11 Page 12
Overview • Operational performance 2011 • Strategic Progress 2011 • Out look 2012 Page 13
DSM in motion: driving focused growth Page 14
Major steps in acquisitions and partnerships Acquisition of Martek Biosciences • Leading posit ions in poly-unsat urat ed Expectations 2015 fat ty acids and Infant Formula market • Double digit sales growt h • Excellent performance • S table t o rising EBITDA margins • Int egrat ion complet ed DSM Sinochem Pharmaceuticals JV St rengt hening posit ion of t he � -lact am • Expectations by 2015 ant i- infect ives business, especially in China • JV to increase its sales to > € 600m • Furt her growt h announced; const ruct ion of • EBITDA margin >15% 6-AP A and announcement of SS Cs plant Other • Complet ion of non-core divest ment s • 10 ot her part nerships and acquisit ions • 5 vent uring invest ment s Page 15
POET & DSM JV make advanced biofuels a reality Market expectations (**) cellulosic ethanol Scope (global demand in billion gallons) • Commercially demonstrat e and license 20 cellulosic bio-et hanol • JV int ends t o license t echnology: 15 –t hroughout POET’s exist ing net work US of 27 corn et hanol plant s China 10 –Worldwide to third parties Brazil EU Value creation 5 • First revenues expect ed in 2013 0 • JV is expect ed to be profit able in first full 2011 2015 2020 2022 year of production (2014) *: Derived from Hart ’ s Global Energy S t udy • Proj ected sales (cellulosic bio-ethanol, Market value for enzymes & yeasts of ~ US $ 3-5 bn by 2022 biogas and lat er on licensing) from JV to grow to > US $ 200m with above average EBITDA in medium/ longer t erm Page 16
2011 step up in High Growth Economies Step up in High Growth Economies High Growth Economies: from 32% to 50% • S ales to High Growth economies increased to 40% of DS M’s sales • S ales to China increased to US $ 2bn in 2011 Organizational change • Business Group HQ’s moved to Asia (DS M Engineering Plastics to S ingapore, DS M Fiber Intermediates to S hanghai) Sales to China: from $1.5bn to > $3bn • DS M S inochem Pharmaceuticals JV 3, 0 est ablished in Hong Kong • Innovat ion cent ers init iat ed in China & 1, 5 India • St rengt hened regional capabilit ies (China, India, Russia and LAM) 0, 0 2005 CMD 2010 FY 2011 Target 2015 S lide 17
Good progress on innovation & sustainability Innovation Innovation from 12% to 20% of sales • Innovation sales increased to 18% of sales • Acquisit ion of C5 Yeast Company from Royal Cosun increased DS M’ s leadership in the field of cellulosic bio-et hanol • DS M & Roquet t e JV st art ed const ruct ion of commercial bio-succinic acid plant Sustainability ECO+ % of running business on track • Sect or leader Dow Jones Sust ainabilit y Index • ECO+ sales 41% of running business • ECO+ innovation pipeline was 94% , clearly above aspiration level > 80% • Energy efficiency 13% improvement vs 2008 • Employee engagement 71% (close to high performance norm) • People+ framework and diversity ambitions defined Page 18
Life Sciences strategic progress 2011 Pharma Nutrition Aspiration by 2015 Aspiration by 2015 FY 2011 FY 2011 • Growth GDP + 2% • EBITDA margin >15% 4% 5% • EBITDA margin >20 - 23% towards 20% 22% • Acquisition of Mart ek biosciences • JV DS M Ant i-infect ives and Sinochem (poly-unsat urat ed fat t y acids) est ablished. • Acquisit ion of Vit at ene • Const ruct ion of 6-APA plant (nat ural carot enoids) • First result s of portfolio expansion • Expanded to 51 premix facilities • CMO pipeline improving (in e.g. IN, RU, CN, CO, EQ) • S uccessful process developments; improving cost position • Asset s opt imizat ion/ rest ruct uring Page 19
Recommend
More recommend
