Life S ciences and Materials S ciences Presentation to Investors Q2 2015 Results, 4 August 2015 Page
S afe harbor statement This present at ion may cont ain forward-looking st at ement s wit h respect t o DSM’ s fut ure (financial) performance and position. S uch st atements are based on current expect ations, estimates and proj ections of DS M and informat ion current ly available t o t he company. DS M caut ions readers t hat such st at ements 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 fact ors can cause act ual performance and posit ion to differ mat erially 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. 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 Page 1
Highlights DS M report s Q2 2015 result s • S olid sales performance with a 12% increase t o €1,965 million, supported by foreign exchange rat es and 3% volume growth • EBITDA increase of 6% to €279 million • Nut rition delivered good organic growt h of 3% , driven by 5% volume growth • Performance Materials showed strong EBITDA growt h of 25% , benefiting from lower input cost s and 2% volume growt h • Cash from continuing operat ing activit ies of €103 million • Int erim dividend of €0.55 • 2015 out look maintained Page 2
Quote from Feike S ij besma “ I am pleased t o report good progress in Q2 wit h a solid volume growt h in Nut rit ion and a st ep-up in Performance Mat erials. The priorit y of improving our operat ional performance is st arting t o deliver result s. Wit h increasingly challenging macro-economic condit ions we remain focused on furt her improving t he operational performance of DS M’ s businesses while making cont inued progress in innovation and sustainabilit y. The set ting-up of eff iciency and cost reduct ion programs wit h a part icular focus on t he Nut rit ion business and t he DS M-wide support funct ions is progressing well. We will announce t he scope of t he program for t he DSM-wide support funct ions by t he end of t his mont h. More informat ion on t he efficiency and cost reduct ion programs for t he Nut rit ion business will be shared at t he Capit al Market s Day on 4 November. We maint ain our full year out look: DS M aims t o deliver an EBITDA in 2015 ahead of 2014, t he increase mainly driven by posit ive foreign Feike S ij besma CEO / exchange effect s.” Chairman of t he Managing Board Page 3
Results Q2/ H1 2015 - Key figures � % � % Q2-2015 Q2-2014 (€ million) H1-2015 H1-2014 Cont inuing operations before except ional it ems: 1,965 1,754 12% 3,851 3,446 12% Net S ales 279 264 6% 527 503 5% EBITDA EPS (€) 0.63 0.62 2% 1.02 1.14 -11 Core EPS (€)* 0.74 0.71 4% 1.25 1.32 -5% Total DS M before exceptional items: 2,515 2,288 10% 4,907 4,586 7% Net S ales EBITDA 332 293 13% 618 563 10% Total DS M after exceptional items: 99 78 27% 29 159 -82% Net profit EPS (€) 0.56 0.45 24% 0.14 0.90 -84% * Core net EPS is the EPS from cont inuing operat ions before except ional it ems and before acquisition related (intangible) asset amortization Page 4
Net sales growth Q2-2015 versus Q2-2014 Price/ � % (€ million) Q2-2015 Q2-2014 Volume FX Ot her Mix Nutrition 1,247 1,073 16% 5% -2% 11% 2% Performance Materials 664 615 8% 2% -4% 10% Innovat ion Cent er 37 38 -3% -14% 0% 11% Corporat e Act ivit ies 17 28 Continuing 1,965 1,754 12% 3% -2% 10% 1% Operations Page 5
Net sales growth H1-2015 versus H1-2014 Price/ � % (€ million) H1-2015 H1-2014 Volume FX Ot her Mix Nutrition 2,446 2,120 15% 5% -1% 10% 1% Performance Materials 1,296 1,204 8% 3% -4% 9% Innovat ion Cent er 73 72 1% -12% -1% 14% Corporat e Act ivit ies 36 50 Continuing 3,851 3,446 12% 3% -2% 10% 1% Operations Page 6
EBITDA –development Q2 � % EBITDA (€ million) Q2-2015 Q2-2014 Nutrition 208 222 -6% Performance Materials 106 85 25% Innovat ion Center -3 -5 Corporat e Act ivit ies -32 -38 Cont inuing Operations* 279 264 6% • Continuing operations (excluding discontinued act ivities) Page 7
EBITDA –development H1 � % EBITDA (€ million) H1-2015 H1-2014 Nutrition 403 425 -5% Performance Materials 192 156 23% Innovat ion Center -8 -11 Corporat e Act ivit ies -60 -67 Cont inuing Operations* 527 503 5% • Continuing operations (excluding discontinued act ivities) Page 8
Nutrition � % � % Q2-2015 Q2-2014 (€ million) H1-2015 H1-2014 1,247 1,073 16% Net sales 2,446 2,120 15% 5% Volume 5% -2% Price/ Mix -1% 11% FX 10% 2% Ot her 1% 208 222 -6% EBITDA 403 425 -5% 16.7% 20.7% EBITDA margin 16.5% 20.0% 137 165 -17% EBIT 266 308 -14% Capital employed 5,474 5,034* • S ales in the second quarter increased by 16% compared to Q2 2014. Organic sales growt h was 3% as a result of 5% higher volumes and 2% lower price/ mix effects. The acquisit ion of Aland, which was finalized on 31 March 2015, had a 2% positive effect on sales. Currencies had an 11% positive impact versus Q2 2014 • EBITDA for Q2 was €208 million, down €14 million or 6% from Q2 2014. Posit ive volume development s were more t han offset by significantly lower vitamin E prices which had a negative impact of around €30 million in the quarter. Positive effects of certain foreign exchange rates, especially the US dollar, were partly offset by the negative impact of the S wiss franc • DS M Food S pecialties showed good volume growth, supported by positive currency developments. In particular t he enzymes and cultures businesses performed well wit h double-digit volume growt h and increased market share * year-end 2014 Page 9
Animal Nutrition & Health � % � % Q2-2015 Q2-2014 (€ million) H1-2015 H1-2014 571 518 10% Net sales 1,145 985 16% 3% Organic Growt h 8% 4% Volume 8% -1% Price/ Mix 0% 7% FX 8% • Animal Nut rit ion and Health net sales were €571 million in Q2, a 10% increase versus Q2 2014. Organic sales growth in Q2 was 3% , with 4% higher volumes and 1% lower prices. The premix business continued to perform strongly. Reported volume growth in Q2 2015 was impacted by a key raw material supply int erruption at Tortuga due to a fire in the port of S antos (Brazil). This led to lost sales of €15 million wit h €7 million business interruption damages, the latter being covered under DSM’s capt ive insurance. Excluding t his business int errupt ion at Tort uga, organic growt h in t he quart er would have been 5% for animal nut rit ion and 4% for t he t otal Nut rition clust er • As expected, vitamin E prices were significant ly lower compared to Q2 2014. The negat ive price effect on sales was largely compensated by higher prices for other ingredient s. However, as a subst ant ial part of t hese other ingredient s are in-sourced for DSM’s premix act ivit ies, these increased prices only have a limit ed benefit at EBITDA level Page 10
Vitamin E prices Vitamin E 50% spot price per kg (source: feedinfo) € 15 € 10 € 5.23/ kg (avg July) € 5 € 0 • Spot prices seem t o have bott omed out in H1 2015 • Thanks to t he full int egrat ion of our vit amin production, DS M continues t o be a low cost supplier versus our Chinese compet it ors • Att ract iveness of Vit amin E market for Chinese players has clearly eroded • Assuming current low spot prices in Vit amin E persist, the negat ive price impact on DSM’s 2015 EBITDA will be around €80-90 million Page 11 Page
Human Nutrition & Health � % � % Q2-2015 Q2-2014 (€ million) H1-2015 H1-2014 479 404 19% Net sales 932 826 13% 3% Organic Growth -1% 5% Volume 0% -2% Price/ Mix -1% 16% FX 14% • Human Nutrition & Health net sales increased by 19% to €479 million in Q2. Volumes were up 5% and prices were down 2% while currencies had a positive effect of 16% • US dietary supplement s showed a mixed pict ure: I-Healt h cont inued t o deliver strong growt h and (multi) vitamin sales were growing on the back of increased promotional activit ies by multi- vitamin producers, whereas fish oil-based Omega 3 dietary supplement s were st ill down versus Q2 last year. Fish oil-based Omega 3 sales showed good growth in Europe and Asia. S ales in DS M’s food & beverage segments also showed a mixed picture with Europe and Asia performing well, but wit h ongoing t ough business condit ions in Nort h and Sout h America. Infant nut rit ion ret urned t o normalized growt h rates aft er the dest ocking in Q2 last year Page 12
Recommend
More recommend
