Highlights YTD 20181
•DSM reports a very good Q3, contributing to a strong first nine months
•Strong organic sales growth in underlying business at 8%
•Underlying Adjusted EBITDA growth at 7%, despite significant negative FX
•ROCE of underlying business at 13.6%, up 130 bps
•Total temporary vitamin price benefit of €290m on Adjusted EBITDA
•Total Adjusted EBITDA up 34%; Net profit €821m
•Cash from Operating Activities €933m up 51%
•Full year outlook unchanged

Key figures and indicators2
in € million
Jan - Sep 2018 Jan- Sep 2017 % change

Underlying business2 Temporary vitamin effect2 Total Group Reported Underlying organic growth2 FX & ‘other’2 Underlying total growth2 Temporary vitamin effect2 Total Group
Sales 6,644 415 7,059 6,456 8% -5% 3% 6% 9%
Nutrition 4,278 415 4,693 4,151 9% -6% 3% 10% 13%
Materials 2,215 2,215 2,132 7% -3% 4% 4%
Adjusted EBITDA 1,162 290 1,452 1,086 7% 27% 34%
Nutrition 847 290 1,137 786 8% 37% 45%
Materials 393 393 369 7% 7%
Innovation 1 1 5
Corporate -79 -79 -74
EBITDA 1,124 290 1,414 1,032
Adjusted EBITDA margin 17.5% 20.6%

1) Underlying (business) is defined in this press release as the performance measures sales and Adjusted EBITDA, corrected for DSM’s best estimate of the temporary vitamin effect.
2) Adjusted EBITDA is an Alternative Performance Measure (APM) that reflects continuing operations.

CEO statement

Feike Sijbesma, CEO/Chairman DSM Managing Board, commented: “We are delighted to report another very good quarter and are confident that we can achieve our full year outlook. The continued organic sales and Adjusted EBITDA growth rates in the underlying business position us well for a strong year which would once again exceed our Strategy 2018 targets.

While there are currently uncertainties around macro-economic developments, we see continued good business conditions in Nutrition and most of our Materials businesses. The strategic plan that we have successfully delivered over the past few years has resulted in a robust portfolio of solution-led, higher value specialty products in Nutrition, Health & Sustainable Living. We are well placed to move forward with our ambitious 2019-2021 strategy. Above market, innovation-led organic growth, as well as inorganic growth will enable us to deliver upon our 2021 strategic targets.”

Q3 Highlights1
•DSM reports a very good Q3
•Continued good underlying organic sales growth at 5%
•Underlying Adjusted EBITDA growth at 7%, despite the negative FX impact
•Nutrition (underlying business): 7% organic sales growth and 10% Adjusted EBITDA growth
•Materials: 3% organic sales growth and Adjusted EBITDA growth of 3%
•Additional temporary vitamin price benefit of €15m on Adjusted EBITDA
•Total Adjusted EBITDA up 11%

Key figures and indicators2

in € million
Q3 2018 Q3 2017 % change

Underlying business2 Temporary vitamin effect2 Total Group Reported Underlying organic growth2 FX & ‘other’2 Underlying total growth2 Temporary vitamin effect2 Total Group
Sales 2,215 50 2,265 2,136 0 -1% 4% 2% 6%
Nutrition 1,438 50 1,488 1 0 -2% 5% 3% 8%
Materials 723 723 706 0 -1% 2% 2%
Adjusted EBITDA 391 15 406 365 7% 4% 11%
Nutrition 283 15 298 258 10% 6% 16%
Materials 132 132 128 3% 3%
Innovation 1 1 4
Corporate -25 -25 -25
EBITDA 370 15 385 343
Adjusted EBITDA margin 17.7% 17.9%

) Underlying (business) is defined in this press release as the performance measures sales and Adjusted EBITDA, corrected for DSM’s best estimate of the temporary vitamin effect.
2) Adjusted EBITDA is an Alternative Performance Measure (APM) that reflects continuing operations.

Outlook 2018

DSM confirms its full year outlook 2018 and expects an Adjusted EBITDA growth of approximately 25% and a related higher ROCE growth. This is based on:
•a low double-digit Adjusted EBITDA growth in the underlying business at constant currencies,
•a negative foreign exchange effect on Adjusted EBITDA of about €70 million, and
•a total Adjusted EBITDA benefit for the full year estimated at €290 million from a temporary exceptional vitamin pricing environment

see & read more on
https://www.dsm.com/corporate/media/informationcenter-news/2018/10/37-18-dsm-q3-2018-results.html

tijd 09.37
DSM EUR 77,14 +1,38 vol. 397.000

DSM informs market on the completion of the sale of DSM Sinochem Pharmaceuticals to Bain Capital.

Heerlen, NL, 31 Oct 2018 16:00 CET
Royal DSM, a global science-based company in Nutrition, Health and Sustainable Living, informs its stakeholders that Bain Capital today has completed the acquisition of DSM Sinochem Pharmaceuticals (DSP), from DSM and Sinochem Group who each held an equity stake of 50%. The transaction was announced on 29 June 2018.
DSM received about €250 million for its equity stake, excluding an earn-out (estimated at around €50m) and transaction costs. DSM anticipates a book profit of about €110 million on the transaction to be recognized in Q4 2018. DSM expects to receive approximately €275 million in cash following closing, including repayment of debt and after transaction costs.