Nutrition Chris Goppelsroeder President & CEO DSM Nutritional Products ROYAL DSM HEALTH NUTRITION MATERIALS

Transcription

1 Nutrition Chris Goppelsroeder President & CEO DSM Nutritional Products ROYAL DSM HEALTH NUTRITION MATERIALS

2 Safe harbor statement This presentation may contain forward-looking statements with respect to DSM s future (financial) performance and position. Such statements are based on current expectations, estimates and projections of DSM and information currently available to the company. DSM cautions readers that such statements involve certain risks and uncertainties that are difficult to predict and therefore it should be understood that many factors can cause actual performance and position to differ materially from these statements. DSM has no obligation to update the statements contained in this presentation, unless required by law. A more comprehensive discussion of the risk factors affecting DSM s business can be found in the company s latest Annual Report, which can be found on the company's corporate website,

3 DSM: True global leader in Nutrition, active over full value chain Food/Feed value chain Raw Materials 45% of Sales Application based formulations 45% of Sales 10% of Sales Nutritional Ingredients Solutions incl. premix B2C Feed, Food, Pharma, Personal Care producers Retail/end consumer Sales by end-market (%) Sales related to ingredient (%) Sales by region (%) Animal Nutrition & Health Human Nutrition & Health Food Specialties Personal Care & Aroma Intermediates Other 1% Fat soluble vitamins Water soluble vitamins Carotenoids Marine PUFAs Microbial PUFAs Enzymes & cultures Minerals & phosphates Savory / yeast extracts Nutraceutical ingredients Aroma intermediates Other incl. premix EMEA North America Latin America Asia 2016: 5,170m sales - 930m EBITDA 13,260 employees globally Page 1

4 : Underlying EBITDA growth driven by successful acquisitions and good volume growth in Animal Nutrition Nutrition EBITDA bridge ( m) % annual EBITDA growth EBITDA 2010 Price FX Acquisitions Growth/synergies Growth from EBITDA 2015 Vitamin E from acquisitions pre-acquisition ~3 portfolio ~5 ~23% ~17% % annual EBITDA growth on acquisitions 210 Sales ( bn) EBITDA-margin 823 Page 2

5 : Successful acquisitions strengthened the business model, boosted growth & made strong earnings contribution with further potential Human Nutrition Animal Nutrition +10% +7% +2% -2% +5% +11% +25% +45% +4% } meat-scandal +4% Acq. date 17 Acq. Date 17 Acq. 17Acq. 17 date Date Acq. date 17 Acq. Date 17 Acq. date 17 Acq. 17 Date Acq. date Acq. Date Sales EBITDA Growth CAGR EBITDA Acq. date 2017 Growth CAGR Total 225m ~ 400m ~10% Page 3

6 : Organic growth from pre-acquisition portfolio excl. VE driven predominantly by Animal Nutrition Nutrition ANH HNH Net sales ( m) EBITDA ( m) Net sales ( m) Net sales ( m) +5% +9% +9% 0-1% Page 4

7 What made us confident in 2015 on delivering on Strategy 2018 targets? The track record from our broad portfolio excl. VE & FX delivering good sales & EBITDA growth 1 New comprehensive Nutrition Improvement Program accelerating growth & providing a step-up in EBITDA The power of DSM s unique business model further strengthened by acquisitions 2 Page 5 3

8 1 Strategy 2018 is working Organic growth above market in main businesses Nutrition Animal Nutrition Human Nutrition Net sales ( m) Net sales ( m) Net sales ( m) m 6,000 +5% m 4,000 m 4,000 4,000 2,000 4,963 5,169 2,545 +6% 2,778 2,000 +8% 2,269 2,399 1,138 +7% 1,263 2,000 +4% 1,742 1,822 +6% 934 1, H H H H H Market growth: 2-3% Market growth: 2-3% Market growth: 2-3% H Page 6 +% Organic growth %

9 2 Comprehensive Nutrition Improvement Program to enhance performance Strategy 2018 ~5% organic growth per year 1% OWC/Sales reduction per yr ~ 300m capex per year m savings Major impact beyond 2018 Animal Nutrition Integrated Business Planning Product Portfolio Operations Innovation Nutrition EBITDA back to range of 18-20% Human Nutrition Spider in the web ACT (DICI/PIP) Raw materials purchasing More focused portfolio Projects Platforms Fixed cost Staff & Services DSM-wide Savings of m Personal Food Care Specialties For existing and new products Staffs &Support functions Max. throughput Yield & energy and higher speed to market Page 7

10 3 Serving our customers globally via a unique business model relevant in both Animal Nutrition and Human Nutrition GLOBAL PRODUCTS LOCAL SOLUTIONS Complete product portfolio Full value chain player Carotenoids Nutraceuticals & Specialties Minerals Vitamins Omega 3 & 6 Nutritional Lipids Enzymes & Eubiotics LEADING COST POSITION DEMAND CREATION MARKET SEGMENT NEEDS RADICAL INNOVATION ChuKe Feed premixes B2C & B2F Nutritional Ingredients Solutions Applicationbased formulations The best of both worlds: economies of scale AND local customer intimacy Page 8

11 Resulting in above-market growth & EBITDA margins well within range Outperforming Strategy 2018 aspirations Above-market organic growth EBITDA margins 18-20% 8% 25% 6% 4% 2% 5% 6% 20% 15% 10% 5% 18.0% 19.0% 0% 2016 H % 2016 H Page 9

12 Outperforming our Strategy 2018 targets on EBITDA and ROCE growth Outperforming Strategy 2018 targets High single-digit percentage annual Adjusted EBITDA growth High double-digit basis point annual ROCE growth m 1, % 20% % % 10% 5% % 12.0% 12.3% % H H % H H Page 10

13 Confident on further organic growth & EBITDA margin improvement in coming years Organic growth EBITDA margins Animal Nutrition & Health ~5% Nutrition Human Nutrition & Health ~5% Growth Mix Cost Innovation ~20% Food Specialties ~5% Page 11

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