Dr. Manfred Eggersdorfer Senior Vice President Research & Development DSM Nutritional Products

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INTERNATIONAL CONFERENCE ON CSR AND COMBATING MALNUTRITION: OBTAINING MILLENNIUM DEVELOPMENT GOALS (MDGs) IN INDONESIA Keynote Address Dr. Manfred Eggersdorfer Senior Vice President Research & Development Grand Sahid Jaya Hotel, 13 14 December 2010

International Conference on CSR and Combating Malnutrition: Obtaining Millennium Development Goals in Indonesia Corporate Social Responsibility in Fighting Malnutrition Jakarta, 14 December 2010 Dr. Manfred Eggersdorfer Senior Vice President Nutrition Science & Advocacy

Agenda 2 Hidden Hunger as a global issue compromising development Millennium Development Goals and Malnutrition DSM s engagement in CSR Summary and conclusions

Worldwide, ~ 2 billion people are affected by Hidden Hunger 3 Hidden Hunger Hot Spots

Hidden Hunger definition 4 Deficiencies in essential micronutrients (vitamins & minerals) in individuals or populations which negatively impact on health, cognition, function, survival, and economic development. Expert Panel, Bangkok, 2009 Worldwide, over one third of deaths among children under 5 years of age is associated with malnutrition.

Why is Hidden Hunger so relevant to address? 5 Causes of mortality in children <5 years old (2004) Other: 13% Globally, undernutrition contributes to more than 1/3 of child deaths HIV/AIDS: 2% Injuries: 4% Measles: 4% Malaria: 7% Neonatal: 37% Reproduced from original source: WHO 2008 Diarrhoea: 16% Acute respiratory infections: 17%

What are micronutrients needed for? 6 Normal Growth Good Health Normal Brain Growth Preventing Deaths Vitamins & Minerals are only needed in small amounts, but are essential for Protecting from Illnesses Having Healthy Babies Good Work Performance

What is the impact of Hidden Hunger? Annual Lives Lost 7 1.1 mio children <5 y 600,000 stillbirths 115,000 women during pregnancy Based on well established data, the reason for nearly 2 million lives lost every year among children <5 years old, is mainly due to vitamin A, iron and zinc deficiencies. Source: WHO Vitamin A & zinc deficiencies Iron deficiency anemia Iron deficiency anemia This cause can be addressed through intervention with adequate micronutrients.

What is the impact of Hidden Hunger? Annual Lives Impaired 8 Maternal iodine deficiency 18 mio babies born mentally impaired Vitamin A deficiency Maternal folate deficiency 350,000 children go blind 150,000 babies born with neural tube defects A united call to action on vitamin and mineral deficiencies (2009)

Why is Hidden Hunger often neglected? 9

... because symptoms are largely subclinical! 10 Clinical Effects Systemic Effects Tissue & Plasma Depletion e.g. Xerophthalmia, cretinism, anemia etc Subclinical, but can impair cognitive development & immune system, provoke birth defects etc 10 s of millions affected Visible Invisible > 2 billion affected Chronic Intake of Low Quality Diet Increased Requirements

What needs to be done 11 Improving the diets of the world s poor is a complex and long term undertaking: Rising incomes, improved access to food, better health & nutrition services delivery, etc In the short term, however, many lives can be saved and improved through a range of micronutrient interventions

Micronutrient Interventions and coverage today 12 Vitamin A Supplementation 82% coverage achieved in 2007 Salt Iodization Worldwide, ~70% HH consume iodized salt Food Fortification 30% of the world s flour produced in large roller mills are fortified (costs $0.1 $1 per year & person)

... and more is required! 13 Zinc Supplementation For diarrhea prevention/treatment In-home Fortification New approach using Micronutrient Powder, MixMe TM e.g. Food-based approaches Dietary improvement related to food security

Nutrition contributes to achieving the Millennium Development Goals 14 GOAL 1: Eradicate extreme poverty Halve the proportion of people whose income is less than US$1 a day Halve the proportion of people who suffer from hunger GOAL 4: Reduce child mortality Reduce by two thirds the under-five mortality rate GOAL 5: Improve maternal health Reduce by three quarters the maternal mortality rate

DSM the global leader in nutrition and health 15 Globally active specialty company Global leadership Innovation driven (~75% of product portfolio) (~ 300 million R&D spend) Products Vitamins Carotenoids Polyunsaturated fatty acids Enzymes Nutrition Performance Materials Industrial Chemicals

How corporate social responsibility is seen at DSM 16 We cannot be successful nor can we call ourselves successful in a society that fails. Feike Sijbesma, CEO DSM

SIGHT AND LIFE the humanitarian initiative 17 Committed to fighting hidden hunger - malnutrition caused by micronutrient deficiencies. Advocating for sustainable and significant improvement in human nutrition, health and well-being for the poorest and most vulnerable. Championing the fight against global hidden hunger through the right mix of funds, knowledge, policy, and technology. 25th Anniversay in 2011

The Nutrition Improvement Program 18 The Nutrition Improvement Program works to eliminate malnutrition around the globe. DSM s key tasks: Sustainable business models: develop tailor-made solutions that fulfill the needs of the target groups and create opportunities in new markets. Partnerships with governments, organizations and industry: support our partners with extensive technical, scientific and regulatory expertise. 18

Objectives of DSM WFP partnership 19 1. WFP and DSM Increase Micronutrient in WFP food basket 2. WFP Advocacy and awareness 3. DSM - DSM Pride Engaging employees and their families - Employee Development - Strengthen DSM s Corporate and Brand Reputation

Feeding Better Food: DSM WFP Nutrition Approach 20 2007 2010-2013 DSM is playing a critical strategic role in enabling WFP to launch the approach at the global level

Example of innovation from partnership with WFP MixMe TM Micronutrient Powder 21 To Increase Micronutrient Intake Underfives who consume too little quality foods Where general food fortification is not available or feasible Water dispersible mix of vitamins & minerals which can be added to food just before consumption One sachet equals 1 g and contains 1 RNI of 15 micronutrients Formulations with enzymes (phytase, amylase) and/or amino acids Stable under harsh climatic conditions

Meeting the recommended dietary intake Example: children in Indonesia aged 24-36 months 22 Energy (kcal) Fat Energy (g) (kcal) Protein Fat (g) (g) Iron Protein (mg) (g) Zinc Iron (mg) (mg) Zinc (mg) TOTAL TOTAL 602.7 16.8 602.7 16.7 16.8 2.6 16.7 2.2 2.6 2.2 % fulfillment from RNI/RDA 1 % fulfillment from RNI/RDA 1 60.3 48.0 60.3 66.8 48.0 32.5 66.8 26.8 32.5 26.8 Nutrient composition of average habitual dietary intake/day Average habitual intake/day with provision of micronutrient powder Recommended dietary intake/day based on locally available food in Nias Island, Indonesia 1 Recommended energy, protein, vitamin A, iron, zinc based on RNI Indonesia (2004); recommended fat intake based on RDA USA (1993) Source: Prof. Hans K. Biesalski, Uni Hohenheim

Vitamin D Deficiency in Asia 23

Summary and Conclusions 24 DSM believes that the private sector is an essential stakeholder in the global fight against malnutrition The challenge of undernutrition has to be addressed jointly by private sector companies in partnership with public sector organizations DSM integrates social and business agendas Corporations must understand that the immediate benefit is not financial in the early stages of social innovation, but nutrition and well being of impoverished populations will sustainably improve

DSM s commitment to CSR honored by WFP and UN 25 UN WFP Executive director Josette Sheeran: We are really pleased that DSM wants to share its outstanding expertise to address malnutrition with us. You can help increase awareness on the issue of global hunger, as will the active involvement of DSM employees in the partnership. Secretary General of the United Nations Ban Ki-Moon: The private sector is among the main stakeholders on hunger and nutrition. Nearly 1 billion people go hungry every day - an unprecedented number. Business is a partner from emergency food aid to long-term agriculture, from our road map for nutrition to our Committee on World Food Security. Feike Sijbesma receives 2010 Humanitarian of the Year Award