2013-09-26 07:17:01 -
Royal DSM, the global Life Sciences and Materials Sciences company, is today
providing a review of its strategic progress and an update on its 2015 targets
at its annual Capital Markets Day being held in Vaalsbroek, The Netherlands. DSM
is also providing an update on current trading conditions.
Feike Sijbesma, CEO and Chairman of the DSM Managing Board, said: "Three years
ago we announced our strategy DSM in Motion: driving focused growth, setting out
ambitious targets and aspirations. Since then we have significantly transformed
our portfolio, which has resulted in more stable, higher quality earnings. This
progress is being underpinned by an extensive Profit Improvement Program. DSM
remains firmly on track to achieve the strategic objectives set out in 2010 and
our focus will continue to be on improving profitability".
the Capital Markets Day DSM will address:
* The transformation of the portfolio, which is well aligned to global
megatrends, and supported by the four compelling growth drivers (high growth
economies, innovation, sustainability and acquisitions & partnerships).
* The strong strategic progress that has been achieved in the past 3 years,
including a total of €2.8 billion in value enhancing acquisitions (of which
€2.4 billion have been in Nutrition).
* Its shift to becoming a truly global company. DSM is well positioned for
accelerated growth in High Growth Economies, where approximately 40% of
sales are currently realized.
* Innovation and sustainability, both of which are driving future growth and
profitability. The three exciting Emerging Business Areas: Bio-based
Products and Services, Biomedical and Advanced Surfaces are creating very
interesting new business opportunities.
* Its updated targets for 2015. These targets reflect a transformed portfolio
and market dynamics and include a new group EBITDA margin target of 14-15%
with a ROCE target of 11-12%.
Furthermore, DSM will outline its priorities for the coming two years:
* Completing the strategic actions for DSM Pharmaceutical Products and Polymer
* Integrating the acquired companies, capturing full synergies and driving
* Improving the operational performance of its businesses
During the Capital Markets Day DSM will also further detail the current market
* The challenging macro-economic environment experienced during H1 2013
continues, with little or no growth in Europe. Asia continues to show good
levels of economic activity, though at more modest levels, while the US
maintains a modest rate of recovery.
* Nutrition is expected to show clearly higher results than in 2012 due to
organic growth moving towards the target of 2% above GDP and the
acquisitions made, with EBITDA margins well within the 20-23% range.
However, the recovery in animal protein markets remains fragile, currently
leading to some pricing pressure especially in Vitamin E. Additionally,
fish oil-based Omega 3 sales are being impacted by somewhat lower consumer
demand following recent sharp retail price increases. Overall, the
compelling growth drivers of the Nutrition business remain unchanged.
* Business conditions in Pharma remain challenging, but DSM is confident that
it will be able to deliver substantially better results, notwithstanding the
usual uneven delivery patterns between quarters.
* Performance Materials is expected to show improved results in 2013, despite
the negative effects of caprolactam.
* Polymer Intermediates is expected to show lower results than in 2012.
* For the Innovation Center the result of the second half of 2013 is expected
to be in line with the second half of 2012.
Overall, DSM expects a significant increase in EBITDA during 2013 from the €1.1
billion realized in 2012. This is a result of stronger organic growth, supported
by DSM's Profit Improvement Program, as the benefits of acquisitions and a more
resilient portfolio are having an increased impact. Foreign exchange rates and
the recently announced Dutch "crisis tax" renewal are likely to have a negative
impact on EBITDA. Overall, based on current economic assumptions, DSM continues
to expect to move towards its 2013 EBITDA target of €1.4 billion. The
combination of the above factors could however result in an EBITDA for 2013
slightly below €1.35 billion.
Share repurchase program to cover existing option plans
In Q4 2013 DSM expects to launch a share repurchase program for 4-5 million
shares to cover its commitments under existing management and personnel option
plans, which is anticipated to continue into Q1 2014.
Webcast and presentations
The DSM Capital Markets Day can be followed live via audio webcast from 13.30
hrs onwards. Today's presentations can be found on www.dsm.com as from 13.30
Today DSM will hold a conference call for the media from 08.30 AM to 09.00 AM
CET. Members of the media can participate by dialing +31 (0)20 531 5871 or +44
(0) 203 365 3210.
DSM - Bright Science. Brighter Living.(TM)
Royal DSM is a global science-based company active in health, nutrition and
materials. By connecting its unique competences in Life Sciences and Materials
Sciences DSM is driving economic prosperity, environmental progress and social
advances to create sustainable value for all stakeholders. DSM delivers
innovative solutions that nourish, protect and improve performance in global
markets such as food and dietary supplements, personal care, feed,
pharmaceuticals, medical devices, automotive, paints, electrical and
electronics, life protection, alternative energy and bio-based materials. DSM's
23,500 employees deliver annual net sales of around €9 billion. The company is
listed on NYSE Euronext. More information can be found www.dsm.com.
Or find us on:
For more information:
DSM Corporate Communications DSM Investor Relations
Herman Betten Dave Huizing
tel. +31 (0) 45 5782017 tel. +31 (0) 45 5782864
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Source: DSM N.V. via Thomson Reuters ONE