Bright Science. Brighter Living.

232 Pages·2013·6.11 MB·English

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Royal DSM
Bright Science. Brighter Living.™
Life Sciences and Materials Sciences DSM has transformed itself into a leading Life Sciences and milk – in turn driving demand for DSM’s food and feed products.
Materials Sciences company that is active in health, nutrition and Food security (access to nutritious food for all people at all times)
materials and creates value for its customers by helping them is one of the main themes to which DSM is contributing.
DSM, the Life Sciences and Materials Sciences company provide solutions to the world’s great challenges. DSM uses its
bright science to create brighter lives for people today and At the same time, a focus on healthy and active aging is driving
generations to come by providing the ingredients to develop demand for fortified foods and supplements. And finally, an aging
Our purpose is to create brighter lives for people today and generations to come. We connect our unique competences in Life
innovative, more sustainable, healthier, more nutritious and population means increased healthcare spending, which DSM
Sciences and Materials Sciences to create solutions that nourish, protect and improve performance.
better performing products. addresses through its engagement in preventive health and
services to pharmaceutical companies.
DSM uses its Bright Science to create Brighter Living for people today and for generations to come. Based on a deep understanding
DSM has a very strong starting position to realize its ambitious
of key global trends that are driving societies, markets and customers, DSM creates solutions to some of the world’s biggest
growth targets as set in its strategy for the period till 2015, all Performance and sustainability are key drivers impacting
challenges, thus adding to both its own and its customers’ success.
based on its strong global market position (with about 38 percent demand in DSM’s Materials Sciences markets, where the
of its total sales of € 9.1 billion coming from high growth company is accelerating the transformation toward the
DSM believes that its continued success will be driven by its ability to create shared value for all stakeholders, now and in the future.
economies), its unique technological knowledge as a basis for production and use of materials that are lighter, healthier, safer,
It creates sustainable shared value by innovating in ways that allow its customers to provide better People, Planet and Profit
innovation, its strong track record in sustainability, its very solid stronger and more durable and that have lower environmental
solutions − solutions to the challenges facing society, the environment and end-users. In this way, DSM’s customers derive value
balance sheet, and the experience and expertise of its 23,500 footprints throughout their value chains than traditional materials.
from being able to offer end-users improved products; society and the planet derive value from the impact of more sustainable,
people.
longer-lasting, safer, healthier and more nutritious alternatives; and, as a result, DSM and its shareholders derive value from stronger
Bringing DSM’s Life Sciences and Materials Sciences
growth and profitability. Finally, DSM’s employees feel engaged and motivated both through the contribution they make to a better
DSM believes that its continued success will be driven by competences together offers cross-fertilization opportunities
world and the success this creates for the company in which they work.
creating shared value for all stakeholders, now and in the future. allowing further advances. This cross-fertilization is managed
It creates sustainable shared value by innovating in ways that through DSM’s Emerging Business Areas. A thorough

allow its customers to provide better People, Planet and Profit understanding of how advanced materials can be used in the
solutions to the challenges facing society, the environment and human body to strengthen or replace body parts and accurately
end-users. In this way, DSM’s customers derive value from being deliver medicines is driving DSM’s biomedical materials
able to offer end-users improved products. Society and the business. By merging its broad biotechnology capability with its
planet derive value from the impact of more sustainable, longer- materials businesses, DSM is able to find renewable solutions
lasting, safer, healthier and more nutritious alternatives. DSM for the post fossil age by creating bio-based materials and
and its shareholders derive value from stronger growth and building blocks and by actively working to create commercially
profitability. viable cellulosic biofuels that do not compete with the food value
chain.
What's more, DSM’s employees feel engaged and motivated
through the contribution they make to a better world and the While DSM continues to meet the needs of customers in the
success this creates for the company in which they work. In mature markets of North America and Western Europe − which
short, DSM is a multi-stakeholder-oriented company with a triple remain central to its core business – the company’s investment
bottom line (People-Planet-Profit) creating value for its focus is increasingly on the high growth economies such as Asia,
customers, shareholders and employees as well as society at Central and Eastern Europe, and Latin America. In these markets
large. DSM expects 70 percent of its growth up to 2015. DSM
consequently is becoming steadily more international, enabling
As a global company, DSM is actively engaged in addressing the it to bring a global perspective to the challenges of all its
same key trends that face all its stakeholders: meeting changing customers. In addition to achieving sustainable, innovative
demands arising from global shifts in demographics and organic growth, DSM will continue to take advantage of
technology, mitigating the impact of climate change while opportunities to acquire exciting businesses and to partner with
searching for new forms of energy and trying not just to feed but others to the benefit of all its stakeholders. And finally, the
also to improve the health of a growing population. company will continue to improve its shareholder returns,
supported by its solid dividend policy.
In DSM’s Life Sciences markets, these trends manifest
themselves through the related impacts of increasing personal In short, after having transformed itself into a Life Sciences and
wealth, urbanization and expanding life expectancy. Materials Sciences company, DSM now focuses on further
D
RoSyMal –D BSMrig ihs ta S gcloiebnacl esc. iBenricgeh-tbears Leidv icnogm.™pany active in health, nutrition and materials. By connecting its unique competences in Life Sciences and Materials Sciences growing the company through an integrated strategy, using four
DSM is driving economic prosperity, environmental progress and social advances to create sustainable value for all stakeholders. DSM delivers innovative solutions that Urbanization drives the consumption of processed foods and the growth drivers: High Growth Economies, Innovation,
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 need for a more efficient food chain, while rising wealth translates Sustainability and Acquisitions & Partnerships.
company is listed on NYSE Euronext. More information can be found at www.dsm.com. into increased demand for proteins from meat, fish, eggs and
© 2013 Royal DSM. All rights reserved.
Bright Science. Brighter Living. 2012 www.dsm.com
DSM AR2012 Cover_def.indd 4-6 27-02-13 11:50
Key data for 2012
Net sales, continuing Operating profit plus Net profit, continuing Net profit, total DSM
operations depreciation and operations1 (x million)
(x million) amortization, continuing (x million)
operations1
(x million)
€ 9,131 € 1,109 € 437 € 288
Cash provided by Capital expenditure Core earnings per ordinary Dividend per ordinary
operating activities, total including acquisitions share, continuing share2
DSM (x million) operations3
(x million)
€ 730 € 1,980 € 2.78 € 1.50
ROCE, continuing Innovation sales as % of Sales in High Growth China sales, continuing
operations total sales Economies as % of total operations
(in %) sales (x USD million)
8.9 18 38 1,700
ECO+ solutions as % of ECO+ solutions as % of Energy use, continuing Water use, continuing
innovation pipeline, total running business, total operations operations
DSM DSM (in petajoules) (in million m3)
80 43 41 150
Greenhouse-gas Workforce Employee engagement - Frequency Index of
emissions, continuing (at year-end) favorable score recordable injuries
operations (in %) (per 100 DSM employees
(x million tons) and contractor employees)
4.2 23,498 72 0.44
1 Before exceptional items
2 Subject to approval by the Annual General Meeting of Shareholders
3 Before exceptional items and excluding amortization of intangible assets related to purchase accounting
Bright Science. Brighter Living. 2012 www.dsm.com 1
Table of contents
3 Key data 122 Report by the Supervisory Board
122 Supervisory Board report
4 DSM at a glance 125 Remuneration policy for the Managing Board and the
Supervisory Board
6 Letter from the Chairman
134 Supervisory Board and Managing Board
10 Report by the Managing Board
10 Highlights of 2012 136 What still went wrong in 2012
14 DSM in motion: driving focused growth
18 Growth Driver: High Growth Economies 138 Information about the DSM share
21 Growth Driver: Innovation
24 Growth Driver: Sustainability 140 Consolidated financial statements
28 Growth Driver: Acquisitions & Partnerships 140 Summary of significant accounting policies
33 Stakeholder engagement 146 Consolidated statements
43 External recognition 153 Notes to the consolidated financial statements of
45 People in 2012 Royal DSM
57 Planet in 2012
69 Profit in 2012 206 Parent company financial statements
207 Notes to the parent company financial statements
74 Review of business in 2012
77 Life Sciences 216 Other information
78 Nutrition 216 Independent Auditor's Report on the Financial Statements
87 Pharma 217 Independent Assurance Report on Sustainability
91 Materials Sciences Information
92 Performance Materials 218 Profit appropriation
101 Polymer Intermediates 219 Special statutory rights
105 Innovation Center 219 Important dates
109 Corporate Activities
220 DSM figures: five-year summary
110 Financial and reporting policy
110 Financial policy 224 Explanation of some concepts and ratios
110 Reporting policy
227 List of abbreviations
112 Corporate governance and risk management
112 Introduction 229 Royal DSM - Bright Science. Brighter Living.™
114 Dutch corporate governance code
115 Governance framework
116 Risk management
121 Statements of the Managing Board
Forward-looking statements
This document 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. Examples of forward-looking statements include statements made
or implied about the company’s strategy, estimates of sales growth, financial results, cost savings and future developments in its existing businesses as well as the
impact of future acquisitions, and the company’s financial position. These statements can be management estimates based on information provided by specialized
agencies or advisors.
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 the company's actual performance and position to differ materially from these statements. These factors include, but are not limited to, macro-economic,
market and business trends and conditions, (low-cost) competition, legal claims, the company's ability to protect intellectual property, changes in legislation, changes
in exchange and interest rates, changes in tax rates, pension costs, raw material and energy prices, employee costs, the implementation of the company’s strategy,
the company’s ability to identify and complete acquisitions and to successfully integrate acquired companies, the company’s ability to realize planned divestments,
savings, restructuring or benefits, the company’s ability to identify, develop and successfully commercialize new products, markets or technologies, economic and/or
political changes and other developments in countries and markets in which DSM operates.
As a result, DSM’s actual future performance, position and/or financial results may differ materially from the plans, goals and expectations set forth in such forward-
looking statements. DSM has no obligation to update the statements contained in this document, unless required by law. The English language version of this document
is leading.
Bright Science. Brighter Living. 2012 www.dsm.com 2
Key data
2012 2011
People
Workforce at 31 December (headcount) 23,498 22,224
Female/male ratio 26/74 26/74
Total employee benefits costs in € million 1,761 1,655
Frequency Index of recordable injuries (per 100 DSM employees and contractor employees) 0.44 0.53
Employee engagement - favorable score (in %) 72 71

Planet
Energy use (in petajoules), continuing operations 41 44
Water use (in million m3), continuing operations 150 157
Greenhouse-gas emissions in CO2 equivalents (x million tons), continuing operations 4.2 4.6
Emission of volatile organic compounds (x 1000 tons), continuing operations 3.4 4.2
COD (Chemical Oxygen Demand) discharges (x 1000 tons), continuing operations 5.5 7.1
ECO+ solutions as % of innovation pipeline, total DSM1 80 94
ECO+ solutions as % of running business, total DSM 43 41

Profit (in € million, unless otherwise indicated)
Net sales, continuing operations 9,131 9,048
China sales in USD million, continuing operations 1,700 2,002
Operating profit plus depreciation and amortization, continuing operations (EBITDA)4 1,109 1,296
Operating profit, continuing operations (EBIT)4 635 866
Net profit, total DSM 288 814

Cash provided by operating activities 730 882
Dividend for DSM shareholders 263 247
Capital expenditure including acquisitions 1,980 1,502
Net debt 1,668 318
Shareholders' equity 5,874 5,784
Total assets 11,966 11,157
Capital employed, continuing operations 8,084 6,581
Market capitalization at 31 December2 8,307 6,504

Per ordinary share in €
Core earnings, continuing operations 2.78 3.66
Dividend 1.503 1.45

Ratios (%)
Sales in High Growth Economies / net sales (total DSM) 38 39
Innovation sales / net sales (total DSM) 18 18
EBITDA / net sales (continuing operations) 12.1 14.3
Operating working capital / annualized net sales (continuing operations) 20.7 20.2
ROCE (continuing operations) 8.9 14.0
Gearing (net debt / equity plus net debt) 21.6 5.1
Equity / total assets 50.5 53.5
Cash provided by operating activities / net sales (total DSM) 8.0 9.6
1 For a definition of ECO+ see page 224
2 Source: Bloomberg
3 Subject to approval by the Annual General Meeting of Shareholders
4 Before exceptional items
Bright Science. Brighter Living. 2012 www.dsm.com 3
DSM at a glance
DSM’s activities have been grouped into For reporting purposes, the activities are
business groups representing coherent grouped into five clusters. In addition, DSM
product/market combinations. The reports on a number of other activities,
business group directors report directly to which have been grouped under Corporate
the Managing Board. Activities.
Life Sciences
Nutrition Pharma
Continued value growth Leveraging partnerships for growth
The Nutrition cluster comprises DSM Nutritional Products and The Pharma cluster includes the business group DSM
DSM Food Specialties. These serve the food and beverage, Pharmaceutical Products (DPP), one of the world’s leading
feed, personal care, dietary supplements and pharmaceutical custom manufacturing suppliers to pharmaceutical and
industries with global capabilities and a deep understanding of biopharmaceutical industries. Many of today’s medicines around
customer and market needs. With customized formulation the world contain ingredients produced by DPP. The cluster also
activities at more than 60 locations and a presence in more than contains DSM’s 50 percent interest in the DSM Sinochem
a hundred countries, customer intimacy is key. DSM's nutrition Pharmaceuticals joint venture (DSP). DSP was formed in 2011
technologies are broad, utilizing competences in biotechnology from the former DSM business group DSM Anti-Infectives. DSP
(including fermentation) and state-of-the-art process is one of the few producers and marketers of beta-lactam active
technology. DSM has the world's broadest ingredients portfolio pharmaceutical ingredients with a global presence, using
and holds leading positions in many large ingredient markets for cutting-edge manufacturing technology with a low
animal and human nutrition and health, like vitamins, environmental footprint.
carotenoids, enzymes, cultures, yeast extracts, polyunsaturated
fatty acids, premixes and formulations.
Materials Sciences
Performance Materials Polymer Intermediates
Growing via sustainable, innovative solutions Strengthening backward integration for DSM Engineering
The Performance Materials cluster comprises DSM Engineering Plastics
Plastics, DSM Dyneema and DSM Resins & Functional Materials. The Polymer Intermediates product cluster comprises
These business groups specialize in the manufacture of caprolactam and acrylonitrile produced by DSM Fibre
technologically sophisticated, high-quality materials that are Intermediates (DFI). These products are raw materials for
tailored to meet customers’ performance criteria, and that help synthetic fibers and plastics. Caprolactam is a key feedstock for
customers substitute traditional solutions with more sustainable DSM Engineering Plastics’ polyamide production. Globally, DFI
and durable alternatives. DSM's performance materials are used is the largest merchant caprolactam supplier and the third largest
in a wide variety of end-use markets like automotive, aviation, merchant acrylonitrile supplier. In addition, the business group
electrical and electronics, marine, sports and leisure, paint and produces ammonium sulfate, sodium cyanide, cyclohexanone
coatings, and construction. Sustainability is a true driver of new and diaminobutane.
business and innovations in materials. DSM's materials portfolio
is shifting towards a higher value added mix by introducing
innovative, more sustainable solutions.
Bright Science. Brighter Living. 2012 www.dsm.com 4
Innovation Center
As an enabler and accelerator of innovation, the Innovation solutions to meet the needs of the medical device and
Center facilitates DSM's strategic transition towards becoming biopharmaceutical industries with coatings, drug delivery
an intrinsically innovative organization. Innovation at DSM is platforms and a wide range of biomedical materials for use in
guided by functional excellence in order to find the best implantable medical devices. The EBA Bio-based Products &
sustainable and commercially viable solutions to market needs, Services creates solutions for bioconversion of feedstocks for
helping create profitable growth. In addition to the activities of the production of bio-based chemicals and materials and
the DSM Innovation Center (including DSM Venturing), this part develops the technologies to enable the production of bio-
of the company also includes the three Emerging Business Areas energy such as cellulosic biofuels. DSM Advanced Surfaces
(EBAs). These EBAs are growth engines that focus on new provides solutions for the development and application of smart
business areas outside the scope of the company's business coatings and is focused on solutions for the solar industry.
groups. DSM Biomedical develops novel materials-based
Sales per cluster in 2012 EBITDA per cluster in 2012 Workforce per cluster in 2012
net sales in € million EBITDA in € million headcount at year-end 2012
excl. Innovation Center (-€ 38 million)
■ Nutrition ■ Nutrition ■ Nutrition
■ Pharma ■ Pharma ■ Pharma
■ Performance Materials ■ Performance Materials ■ Performance Materials
■ Polymer Intermediates ■ Polymer Intermediates ■ Polymer Intermediates
■ Innovation Center ■ Innovation Center
1,596 102 129 1,474 668
3,667 280
5,354 9,489
2,772 39 793
726 3,314
Bright Science. Brighter Living. 2012 www.dsm.com 5
Letter from the Chairman
Dear reader,
As the world continues to face unprecedented challenges from of total sales. In 2012 this was 18 percent. Our target for 2015
both an economic, environmental and societal perspective, our is 20 percent.
existing approaches are being put to the test. Navigating through
a decade that is already being dubbed the ‘Turbulent Teens’ is Our Emerging Business Areas (EBAs) are doing very well. The
becoming increasingly challenging, as developments in our acquisition of Kensey Nash has further strengthened the
complex and interconnected world are happening with great Biomedical EBA, making DSM a leading medical device
speed. However, to DSM these challenges are also providing materials supplier. And together with POET in the United States,
opportunities. We believe we can contribute to solutions and we started POET-DSM Advanced Biofuels, a joint venture to
new approaches and we are committed to turning them into commercially develop the production of cellulosic biofuels, made
reality. out of plant residues. The construction of the POET-DSM
biofuels facility in Emmetsburg, Iowa (USA), is proceeding
The innovative and sustainable solutions that we offer our according to plan. In the field of bio-based chemicals, too, we
customers help them address their current and future needs. saw good progress, including the start-up of our new bio-
These needs are a response to global trends and challenges. succinic acid plant in Italy, in cooperation with Roquette.
The global population is growing and aging, and is increasingly
urban and increasingly wealthy. This all leads to increased Besides being a core value and a responsibility to contribute to
consumption per capita and a bigger claim on the world’s society, sustainability has become a real business driver for
resources. DSM. Our ECO+ products and solutions, which have a clearly
smaller environmental footprint than mainstream solutions,
We see all this come together in the three key global societal increased in 2012 to 43 percent of our total sales and accounted
trends that we have on our corporate radar screen: a global for 80 percent of our innovation pipeline. Our list of ECO+
demographic shift, challenges in the field of the global climate solutions continues to grow. In 2012, we further enhanced our
and (alternative) energy use, and a growing focus on how to leadership position in sustainability. DSM is developing a
secure nutrition, health and wellness for all. People+ strategy that aims to deliver measurably better solutions
for improving people’s lives. People+ will do for the ‘people’
Our strategy in addressing these trends and meeting these element of our Triple P approach what ECO+ has done for
needs has led us to focus on four growth drivers: High Growth ‘planet’.
Economies, Innovation, Sustainability and Acquisitions &
Partnerships. In 2012 we once again delivered progress on all In 2012 DSM was very active on the Acquisitions & Partnerships
four growth drivers. front. In addition to the biofuels partnership with POET and the
biomedical acquisition of Kensey Nash, we announced more
In the High Growth Economies, we continue to increase our than five acquisitions in the nutrition field, including Ocean
sales and presence. In 2012 these economies accounted for Nutrition Canada (Canada; polyunsaturated fatty acids, such as
38 percent of our total sales versus 39 percent in 2011. This Omega-3/DHA), Tortuga (Brazil; organic chelates and other feed
decrease was mainly due to lower caprolactam sales in China. ingredients), Verenium Enzymes (USA; enzymes), the cultures
Five years ago this was less than 30 percent. Most notable in and enzymes business of Cargill (USA and Europe, cultures) and
2012 were our investments in China (nutrition, resins and Fortitech (USA; food (premix) ingredients).
caprolactam) and our announcement of our upcoming
expansion in Brazil, where we are preparing to acquire Tortuga, In total we have invested € 2.8 billion in acquisitions since
a leading company in nutritional supplements with a focus on September 2010, when we adopted our current strategy. The
pasture raised cattle. acquisitions will result in stronger and more stable growth and
profitability for DSM overall and will contribute to the current and
We remain committed to R&D and innovation and have built future growth of DSM. Due to synergies the internal value of the
further on our best practices. Evidence of this commitment is our acquisitions is significantly higher than the total acquisition
new investment in R&D facilities in Delft and Sittard-Geleen (both amount. All acquisitions immediately contribute to earnings per
in the Netherlands). During 2012 we further added over 300 new share.
patents to our rich patent portfolio. In India and China we
continued to develop regional innovation centers. We are firmly As a result of the acquisitions announced in 2012, we are
on track towards our target for innovation sales as a percentage welcoming approximately 2,700 new colleagues to our
Bright Science. Brighter Living. 2012 www.dsm.com 6
Letter from the Chairman
increasingly global workforce. Their smooth integration into the accountability for performance, collaboration with speed and
DSM family in a timely and efficient manner, while ensuring inclusion & diversity.
business continuity and customer satisfaction, is a key priority
for us. DSM’s fifth worldwide Employee Engagement Survey showed a
very high response rate of 87 percent. The Employee
When all of the announced acquisitions have been completed, Engagement Index, the percentage of employees scoring
the majority of DSM’s portfolio will be geared towards attractive favorable, was 72 percent compared to 71 percent in 2011,
end-markets with low GDP sensitivity. In the Nutrition cluster, which means that it was once again above the global overall
DSM has announced around € 2.4 billion in acquisitions since norm. An engaged workforce is critical to DSM in realizing our
2010, broadening our product portfolio, extending and ambitions.
enhancing our presence across the value chain and
strengthening our global footprint. On a pro forma basis, the Our hard work to further improve safety is bearing fruit. During
cluster now has a size of around € 4.6 billion in sales and an the year we focused on the improvement of our safety culture
EBITDA margin in the range of 20-23 percent. and performance, among other things by securing compliance
with the Life Saving Rules. The Frequency Index of recordable
As the world’s largest supplier of nutritional ingredients, DSM has injuries fell to 0.44 in 2012 from 0.53 a year earlier. Although this
created a unique position with the broadest, deepest and most is a considerable improvement, we still need to work on further
global offering to customers, positioning our company for further reducing this Frequency Index.
profitable growth. Nutrition now represents more than
70 percent of total EBITDA and has become a high value, global We also need to improve further with regard to diversity, among
business with attractive growth prospects across the full value other things by implementing best practices.
chain.
For DSM, People, Planet and Profit are equally important. Our
During 2012 we continued to experience a challenging macro- company’s primary goal is to provide value for all stakeholders
economic environment, with low growth in Europe. Asia on all three dimensions. We stay committed to aligning our
continued to show good levels of economic activity whilst the US strategy and operations with the principles of the United Nations
has maintained a modest rate of recovery. In the context of these Global Compact. We are very proud that in 2012 we were again
conditions, DSM delivered growth across all clusters in 2012, named among the leaders in the Dow Jones Sustainability World
excluding caprolactam. For the full year EBITDA amounted to Index.
€ 1,109 million, 14 percent lower compared to 2011. Profit

growth in all clusters was more than offset by
approximately € 300 million lower results from DSM’s
caprolactam activities in Polymer Intermediates and
Performance Materials.
The Profit Improvement Program that was launched in August
2012, on top of the previously announced program in DSM
Resins & Functional Materials, is fully on track and is expected
to deliver structural annual EBITDA benefits of € 150 million by
2014 of which more than half is expected in 2013. As
anticipated, DSM has expanded the profit improvement initiative
and now expects to achieve another € 50-100 million in benefits
on top of the € 150 million. The benefits following this extension
are expected to be fully achieved by 2015.
During 2012, we transitioned our Change Agenda into a ONE
DSM Culture Agenda in order to develop the culture required to
achieve our strategic ambitions, mirror the world that we operate
in, and become a high performance organization. The ONE DSM
agenda consists of four themes: external orientation,
Bright Science. Brighter Living. 2012 www.dsm.com 7
We are also proud that during 2012 DSM won several
prestigious awards and received a great deal of recognition for
its achievements regarding its integrated Triple P approach,
developing a sustainable business that creates value for all
stakeholders.
We continue to further develop our integrated reporting based
on the guidelines of the Global Reporting Initiative (GRI). We have
determined that this integrated annual report, our third, once
again merits the GRI A+ rating, representing a high level of
transparency.
The significant strategic progress we made during 2012 through
our value creating acquisitions and the profit improvement
initiatives we have taken, leave us well positioned to achieve our
long term objectives. In 2013 we will focus on the operational
performance and integration of the acquisitions we completed
in 2012 with special attention to capturing synergies. We expect
strong EBITDA growth in 2013, moving towards € 1.4 billion. The
Board’s proposal to increase the dividend for the third
consecutive year is testament to the stronger DSM we have built
in recent years, with more stable growth and profitability going
forward.
At DSM we are committed to creating value for all stakeholders
by fully leveraging the unique opportunities in Life Sciences and
Materials Sciences, for the benefit of people today and for
generations to come. It is a collective effort whose success
depends on the engagement not only of our employees but also
of the people that we cooperate with: at our customers, at our
suppliers and at the civil society organizations that we engage
with. I would like to extend my sincere appreciation and gratitude
to all who are traveling with us on this very exciting journey. We
look forward to reporting further progress.
Feike Sijbesma
CEO/Chairman of the Managing Board