An introduction to Royal DSM

A purpose-led science-based company active in

Nutrition, Health and Sustainable Living
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Contents

• DSM at a glance

• Strategy: Growth & Value - Purpose led, Performance driven

• Contact

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DSM at a glance

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Royal DSM is a purpose-led

science-based company in
Nutrition, Health and
Sustainable Living.

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Our purpose is to create

brighter lives for all.
We use our bright science to
create solutions for people
today and generations to
come.

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DSM @ a glance
(2017 numbers)

• Sales ~€8.6bn (9% growth in 2017)

Animal Nutrition
& Health • EBITDA €1,445m (15% growth in 2017)
• ROCE 12.3% (up 190bps)
Materials • Global company with 65% of sales
outside Europe
• Highly engaged workforce: ~23,000
employees
• Intrinsically innovative company: 21%
sales from innovation
• ~ 45% sales from high-growth economies
Human Nutrition & Health • Strategy well aligned with the
Food Specialties & Personal Care Sustainable Development Goals

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Successful transformation future-proofing DSM

Coal mining (Petro)chemicals Nutrition, Health & Sustainable Living

2018

1902

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Active in Nutrition, Health and Sustainable Living

Nutrition Health Sustainable Living

DSM delivers innovative business solutions for human nutrition, animal nutrition, personal care
and aroma, medical devices, green products and applications, and new mobility and
connectivity

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DSM’s businesses address the Sustainable Development

Goals

Nutrition
& Health

Climate
& Energy

Resources
& Circularity

Please see DSM’s Integrated Annual Report 2017 for definitions and additional information

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DSM workforce
Global workforce (FTE)

North America Europe Asia

> 3,000 > 9,000 > 6,000

~60%
employees
outside Europe
(2017)
Africa:
Latin America 73 employees RoW
> 2,000 > 250 (37% - 2006*)

~25,000 employees incl. JVs/Associates

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DSM sales
Net sales by destination (%)
3%
10%

3%
65%
W-Europe
28%
Eastern Europe
2%
North America
Latin America
sales
China
India outside Europe
13% Japan (2017)
Rest of Asia
Rest of the World
(48% - 2006*)
7%

12%

22%

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DSM offers products & solutions to a wide range of

end-markets (2017 numbers)
Dairy
RTE meals
Soups / Sauces / Spreads
(Food) Food & Wine-Beer-Fruit drinks
Materials Packaging Beverages

Other 6%
14%
10% Early life
Building & 6%
nutrition
6%
Construction
Dietary
7% 10%
Supplements
Automotive 5% 4%
Personal
Electrical & Electronics Care
32% Nutrition
Animal Feed

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Nutrition at a glance (2017)

Sales World leading Global presence Addressing
€5.579 billion supplier of full health & wellness,
range of nutritional Facilities on all food security,
ingredients continents global shifts

Adj. EBITDA 13,676

€1,053 million employees

• DSM is the leading global supplier of vitamins, omegas, carotenoids, nutritional

ingredients, UV filters, aroma intermediates, enzymes, yeasts, premixes offering
nutritional solutions for human and animal nutrition & health.
• Its customers are global, regional and local feed and premix companies, animal
protein producers and food, beverage, infant nutrition, dietary supplement,
pharmaceutical, personal care and flavor & fragrance companies

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Examples nutritional products of DSM

Vitamins Carotenoids Nutritional Lipids Feed Enzymes

are essential nutrients Essential antioxidants Omega-3 and –6 play a Solutions developed to
required for growth increasing performance critical role in proper meet challenges of
and well-being. DSM and consistent brain function, vision global livestock farming.
has all 13 Vitamins pigmentation a/o for process, immune and Reducing costs by
including A, D, E, K, C, salmon, eggs inflammatory responses improving feed
all B vitamins, folic and hormone-like conversion and animal
acid and pantothenic molecules health
acid

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More examples of nutritional products

Food & Beverage Minerals for animals Yeasts, cultures and

Enzymes
natural proteins that act as
catalysts for biochemical
reactions, used in dairy,
baking, beverages, oil & fats
and grain processing
that are needed by the body probiotics
in very small amounts that providing taste and texture
cannot be made by living and adding specific health
organisms benefits

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Materials at a glance (2017)

Sales World leading Global presence Addressing safety,
€2.825 billion supplier of fuel efficiency,
high performance Facilities on emission-reduction,
materials all continents health,
comfort
Adj. EBITDA 4,635
€488 million employees

• DSM has developed a portfolio of specialized performance materials with higher

value added businesses, serving the global automotive, electrical & electronics,
building & construction, food-packaging, high-performance textiles & life
protection end-markets
• DSM is a leading provider of sustainable innovations, meeting demands for
greater energy efficiency, safer materials and improved environmental
performance

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Examples of materials of DSM

DSM Engineering DSM Dyneema is the Innovative resins for High-performance UV-
Plastics is supplier of global supplier of sustainable coatings curable optical fiber
high performance Dyneema®, the world’s systems, including: materials for high-speed
engineering strongest fiber™, used waterborne resins, fiber networks
thermoplastics as for medical sutures, powder resins and connecting the world
Stanyl®, ForTii®, fishing, aquaculture 100% UV curable resins
ExoPaxx®, Akulon®, nets, ropes, slings,
Arnite®, Xytron®, used cut-resistant gloves,
in automotive, vehicle & personal
electronics, ballistic protection
specialized industries
and food packaging

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Three attractive innovation platforms

DSM Biomedical DSM Bio-based Products DSM Advanced Solar

Innovative materials that & Services
deliver more advanced Advanced enzymes and yeast
clinical procedures and platforms: enabling advanced
improved patient outcomes bio-energy and bio-based
chemicals
Smart coatings and surface
technologies to boost
performance in the solar
industry

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62% sales of Brighter Living Solutions (ECO+/People+)

DSM’s solutions should be better for people and planet

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Brighter Living Solutions

Anti-reflective coatings for Dyneema® for sustainable Higher eco-efficiency and

solar glass increasing and durable cargo nets, downstream cost benefits
efficiency of solar panels reduces weight with Brewers Clarex™
applied in beer

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Brighter Living Solutions

Optimized vitamin-D, Surgeons benefit DSM’s waterborne ALPAFLOR® EDELWEISS:

preventing from an effective coating systems Preserves skin’s natural
osteoporosis and barrier against have less impact on balance. Supports
reducing fractures. bacteria and viruses health compared to Alpine flora diversity
Improving lives & with disposable solvent borne paints and contributes to local
reducing costs medical gowns made prosperity
from Arnitel® VT

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External recognition
• DSM named on Fortune Magazine’s ‘Change the
World’ List for third consecutive year
• CEO Feike Sijbesma named among the World’s 50
Greatest Leaders by Fortune Magazine
• #1 in Sustainalytics for the second year in a row
• Again named in Carbon Disclosure Project 'Climate
A List’
• Among leaders in Dow Jones Sustainability World
Index
• Once again confirmed as one of the 100 World’s
Most Sustainable Corporations by Corporate Knights
• Named in the ‘2016-2017 Most Respected
Companies in China’ list organized by The Economic
Observer
• World Resources Institute honors Feike Sijbesma
• Received 2017 BioEconomy Leadership Award at the
39th Symposium on Biotechnology for Fuels and
Chemicals
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Strategy:
Purpose led, Performance
driven

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WHY
Why we do things is driven by our Purpose
Creating brighter lives for all

HOW
How we achieve our Purpose and Strategy is defined by our ways of working
Doing something meaningful, every day

WHAT
What we do is laid out in our Strategy
Growth & Value – Purpose led, Performance driven

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Purpose drives growth opportunities

DSM’s key competences … … provide growth opportunities in the focus-domains …
Human Nutrition Stevia Project Clean Animal Nutrition
Cow
MixFit
… creating a
Biomedical Advanced Solar
growth company …
Future-proof

Nutrition Climate
& Health & Energy

… addressing megatrends/SDGs Resources &

… Circularity
… reaching
Global SDG ~2.5 bn people
Megatrends s Veramaris Niaga
worldwide
Animal Nutrition Bio platforms 2G Biofuels Closed-loop
solutions

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Growth enablers | Digitization drives growth and

improves efficiency
Customer intimacy Operational performance New business models

▪ Improve top-line results ▪ Reduce costs by automation & ▪ Digital entrepreneurship & AI
data analytics

– Customer data analytics
– Omnichannel apps providing 24/7
customer experiences
– Strong cloud technology stack
– Digital collaboration tools
– Increase productivity in support
functions and manufacturing
by automation/ robotization
– Data analytics for optimization of
operational processes
– Improve safety, quality and plant
reliability
– Partnerships for digital value
propositions
– Digital business transformation
– Pilots on personalized nutrition
and animalized feed
– Become trusted reference in
nutritional knowledge

Advanced Digital Technology Platform ● Agile Organization & Ways of Working

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Growth enablers | continued sustainability leadership

step-up

2017 8% 3% 21% 75% 0.36 62%

Realization1 ▪ GHG ▪ Energy ▪ Purchased ▪ Employee ▪ Safety ▪ Brighter

efficiency efficiency renewable engagement Frequency Living
improvement improvement energy favorable score Recordable Solutions
(vs. 2015) (vs. 2015) Index

2021 / 2030 ▪ 30% absolute ▪ >1% average ▪ 75% ▪ >75% ▪ <0.25 ▪ >65%3
Ambitions reduction by annually by 2030 by 2021 by 2021 by 2021
2030 (vs. 2016) 2 till 2030

BusinessSustainable solutions
Develop and introduce new innovative sustainable solutions with focus on
growth
Nutrition & Health – Climate & Energy – Resources & Circularity domains (e.g., Project Clean Cow, Veramaris, Niaga, etc.)
enabler

1.See DSM’s Integrated Annual Report 2017 for definitions and additional information; in addition: Circular Businesses DSM in 2017: ~15% of total sales
2.Change from efficiency to absolute reduction (scope 1&2); scope 3 set in H2 ‘18 (part of Science Based Targets); GHG EI of 8% in ‘15/’17 is 26% vs. 2008
(target: ~40% by 2025)
3. KPI will be updated as part of the Responsible Care Plan update in 2020

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Contact

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Contact
DSM Corporate Communications
 (+31) 45 578 2017
e-mail: media.contacts@dsm.com

Investors: DSM Investor Relations www.dsm.com

 (+31) 45 578 2864
e-mail: investor.relations@dsm.com

Stay informed via the DSM Investor Relations app

(Apple’s App store & Google Play)

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