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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, www.dsm.com
An attractive Materials portfolio was created
Page 1
1. Whilst not part of the cluster, the Emerging Business Areas of DSM Biomedical and DSM Advanced Solar are also related to Materials and represent promising
growth platforms for the longer term
▪ Transformed portfolio
– Focus on sustainable specialty
products
– Exit of Bulk Chemicals via
partnership
▪ Differentiated approach to drive
growth
▪ Optimized portfolio via cost savings
and efficiency improvements
▪ Increased application development
capabilities
High Low DSM’s capability to extract value
Mark
et
gro
wth
- DSM Engineering Plastics
- DSM Dyneema
- DSM Resins & Functional Materials
- Emerging Business Areas
High
High Performance
Plastics
Biomedical
Functional
Materials
Dyneema® Fiber
Solutions
Specialty
Coating
Resins
Solar
Dyneema®
Life Protection
Strengthen
Accelerate
Powder
Coating Resins
PA6
Polymers
PA6
Compounds
Acrylonitrile
Composite
Resins
Caprolactam
Restructure
High-quality Materials portfolio now ready for accelerated growth
Page 2
1. Divestitures include Composite Resins (~€300m sales), Euroresins (~€80m sales) and Synres (~€60m sales)
CAGR ~2.5% per annum Adj. EBITDA up almost 50% Strong progress margin &
ROCE
Adj. EBITDA margin:
12%ROCE: 10%
2010
Adj. EBITDA margin:
15.2%ROCE: 14.4%
2015
~€2.1bn2010
>€2.5bn2015
€259m2010
€384m2015
Divested
~€0.4bn1
Divested
~€24m1
2010-15 performance
Using a differentiated approach, Strategy 2018 focused on the higher-
growth, specialty segments
Page 3
1. Whilst not part of the cluster, the Emerging Business Areas of DSM Biomedical and DSM Advanced Solar are also related to Materials and represent promising
growth platforms for the longer term
High Low
High-Performance
Plastics
Biomedical1
Functional
Materials
Specialty Coating
Resins
DSM’s capability to extract value
Mark
et
gro
wth
Solar1
Dyneema® Life
Protection
Growth
Accelerated
growth
Powder
Coating Resins
PA6 HV
Film & extrusion
PA6
Injection molding
- DSM Engineering Plastics
- DSM Dyneema
- DSM Resins & Functional Materials
- Emerging Business Areas
High
Maximize
returnsDyneema®
Fiber Solutions
Strategy 2018 aspirations
▪ High single-digit percentage
annual Adjusted EBITDA
growth
▪ High double-digit basis point
annual ROCE growth
▪ EBITDA margins >15% over the
period
▪ Above-market sales growth (at
stable prices)
Prudent capital allocation: capex and R&D investments shifted to the
high-growth segments
Page 4
Accelerated growth Maximize returnsGrowth
0
50
100
150
2011 2015 2017E
0
100
200
300
400
500
2011 2015 2017E
0
50
100
150
2011 2015 2017E
Capex (€m) Capex (€m) Capex (€m)
0
50
100
150
2011 2015 2017E
0
50
100
150
2011 2015 2017E
0
50
100
150
2011 2015 2017E
R&D (€m) R&D (€m) R&D (€m)
Differentiated growth approach is further enhancing the mix
Page 5
Accelerated growth Maximize returnsGrowth
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
0
200
400
600
800
1,000
1,200
1,400
2011 2015 2017E
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
0
100
200
300
400
500
600
2011 2015 2017E
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
0
200
400
600
800
1,000
1,200
1,400
2011 2015 2017E
Net sales (€m) Net sales (€m) Volume (kt)
6%~7% 5%
~7%
1%~-1%
x% CAGR
30% 34% 35% 38% 41% 42% 32% 25% 23%
x% % of total Materials salesEBITDA%
Target
>15%
Very good progress on executing Strategy 2018 actions
Page 6
1. As reported
✓ ✓Above market growth Adj. EBITDA margin >15% over the period
12.0%
17.3% 16.9%
0%
5%
10%
15%
20%
25%
30%
Avg. 2010-15 2016 H1 2017
~2.0%
4.0%
8.0%
0%
2%
4%
6%
8%
10%
2011-15CAGR
Market2016-18
2016 H1 2017 1
Resulting in outperformance of the Strategy 2018 aspirations
Page 7
✓ ✓High single-digit percentage annual
Adjusted EBITDA growth
High double-digit basis point annual
ROCE growth
384435
212241
0
100
200
300
400
500
2015 2016 H1 2016 H1 2017
14%
13%
14.4%
17.6% 16.9%19.5%
0%
5%
10%
15%
20%
25%
2015 2016 H1 2016 H1 2017
€m
260bps320bps
Materials aims to continue sales growth and operating leverage
improvements
Page 8
▪ Sales growth driven by:
– Demand shifts from macro trends
– Substitution growth
– Innovation driven growth
– New applications
1 2▪ Improving operating leverage through:
– Maximizing returns in PA6 HV film &
extrusion and powder coating resins
– Prudent cost and capital allocation
Materials positioned to profit from demand shifts as a result of
the (societal) megatrends
Page 9
1
Future of transport Eco-materialsRenewable energy
Higher performance and
more complex materials
needed for use in new
designs, energy storage,
autonomous systems and
light weighting
Advanced healthcare Sustainable packagingCustomization & connectivity
Increasing complexity and
electronics integration
drives material performance
requirements for materials
used inside and outside the
body
Demand for materials that
contribute to material
properties for each
technology generation in
wind, solar, and energy
storage
Shift towards bio-based, re-
usable, recyclable,
degradable, no VOCs and
other green materials and
design for a circular
economy
Need for new types of
performance materials e.g.,
for 3D printing and possibly
new business models (e.g.,
direct access for
personalized product
design)
Higher barrier properties,
recyclability and bio-
degradability (incl. design
for circular economy)
becoming more important
for packaging materials
‘Winning segments’ selected to further drive differentiated
growth from substitution-based development
Page 10
Automotive ElectronicsLife
ProtectionFiber
SolutionsSustainable
CoatingsFunctional Materials
Replace metals &
hazardous materialsReplace steel/aluminum & aramids Environmentally friendly solutions
DSM Engineering Plastics DSM Dyneema DSM Resins & Functional Mat.DSM
Biomedical
Replace traditional
solutions
Regenerative Biomaterials
DSM Advanced
Solar
Fossil fuel
replacement
Solar
Growth via end markets and substitution based on application development
1
Strong innovation pipeline driven by application development
with/ for customers driving longer-term growth
Page 11
Engineering Plastics Resins & Functional MaterialsDyneema
▪ Bio-based
resins
▪ Recyclable
carpets
▪ 3D printing▪ Synthetic
chains
▪ Carbon hybrid
composites
▪ Performance
fabrics
▪ HPPO
polymers
▪ Printed
electronics
▪ High-heat
thermoplastics
▪ High-pressure
composite
tanks
1
▪ ‘Haptics – the
feel of
coatings’
Continue cost and capital discipline to further improve operating
leverage
Page 12
2
Improve operating leverage through:
▪ Maximizing returns in PA6 HV film & extrusion
and powder coating resins
– Fully utilize/ optimize the assets
– Drive internal compound demand
(Engineering Plastics)/ sustainable
substitution demand (Resins)
▪ Prudent cost and capital allocation
– Continue cost, capex and working capital
discipline in Materials
▪ Sales growth driven by:
– Demand shifts from macro trends
– Substitution growth
– Innovation driven growth
– New applications
1 2▪ Improving operating leverage through:
– Maximizing returns in PA6 HV film &
extrusion and powder coating resins
– Prudent cost and capital allocation
Materials is confident it can continue its value enhancing ‘silent’
transformation
Page 13
▪ Delivering sales growth of ~5%
▪ Continuation of the ‘silent’ transformation in Materials with the aim to deliver
resilient margins above the Strategy 2018 aspiration of 15%