An introduction

to Royal DSM
Purpose-led science to address
the world’s challenges in nutrition,
health and sustainable living
Contents

• DSM at a glance

• Our purpose and strategy

• Case study examples in our focus domains:

– Nutrition & Health

– Climate & Energy
– Resources & Circularity

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DSM at a glance

Purpose-led science to address

the world’s challenges in nutrition,
health and sustainable living

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DSM at a glance
2019 numbers
Innovation
Center
• Global company with 43% of sales to high-
growth economies Materials Animal
• Intrinsically innovative with 21% of sales from Nutrition
products launched in the last 5 years & Health
Sales:
• Highly engaged workforce across the world of ~ €10 billion
~23,000 employees
• Purpose-led strategy aligned with the UN
Sustainable Development Goals

Human Nutrition &

Health Food Specialties
& Personal Care

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Successful transformation future-proofing DSM

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

2020

1902

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DSM global workforce
~60% Employees outside Europe (2019)
~23,000 Employees incl. JVs/associates

Europe
> 9,000
North America Asia
> 3,000 > 6,000

RoW
> 250

Africa:
Latin America 73 employees

> 2,000

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~65% sales outside Europe (2019)
Net sales by destination (in %)

Rest of the world (3%)

Rest of Asia (10%)
Japan (3%) Western Europe (27%)

India (3%)

China (12%)

Eastern Europe (7%)

Latin America (12%)

North America (23%)

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Products & solutions for a wide range of end-markets
Net sales by end-use markets (in %)

Other (17%) Food & beverages (11%)

Medical pharma (3%)

Electrical/electronics (5%) Dietary supplements (9)

Automotive/ transport (7%)

Early Life Nutrition (5%)

Metal/Building & construction (5%) Personal Care (4%)

Animal Nutrition (34%)

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Nutrition at a glance
2019 numbers

• # 1 Supplier of vitamins, nutritional lipids, World leading supplier of a

carotenoids, nutraceutical ingredients and full range of nutritional
custom nutrient premixes ingredients
• ~15 million consumers served annually by our
i-Health B2C business
• 46 animal nutrition and 15 human nutrition Sales €6,028 million
premix facilities
• >70% of our skin care portfolio is more than
90% of natural origin Facilities on all continents
~14,500 employees
• #1 Supplier of lactase enzymes for lactose-
free dairy

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Materials at a glance
2019 numbers

• 100% Renewable electricity used in the

World leading supplier of
manufacture of materials for Apple's high-performance
products by end of 2019 materials
• #1 supplier of fiber optic coatings
• > 1 million first responders and service
personnel protected by Dyneema® Sales: €2.746 million

Facilities on all continents

~4,500 employees

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Innovation at a glance
2019 numbers

• Accelerating the innovative power of our

21% Innovation sales
core business with breakthroughs such as: ~5% R&D expenditure
– Fermentative Stevia: for sugar reduction as a % of sales
– Project Clean Cow: feed additives for
reduced methane emissions in cattle
More than 30 labs across
– Veramaris®: algae-based omega-3 for 10 countries
sustainable aquaculture ~1,900 scientists
– Niaga®: technology for fully recyclable
carpets Participation in:
>200 academic networks
>40 public-private
partnerships

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Attractive innovation platforms

DSM DSM Bio-based DSM

Biomedical Products & Services Advanced Solar

Every second a patient receives a 3-5% yield improvement for ethanol > 250 million PV modules use
medical device containing a producers who use our eBOOST™ DSM coating technologies
biomedical solution from DSM

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 Our purpose is to create brighter
lives for all
We are already reaching more
than 2.5 billion people worldwide

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Purpose drives growth opportunities
Strategy 2021: Growth & Value – Purpose-led, Performance driven

Our competences provide growth creating a with targets that

and purpose... opportunities in
the focus domains...
Our key competences + A science-based company
addressing megatrends active in Nutrition, Health
and the UN SDGs: and Sustainable Living:
growth company... underpin our purpose.
Company Our 2019-2021 targets:
growth
High single-digit %
annual increase in
Adjusted EBITDA

~10% average annual

Mega Trends increase in Adjusted net
operating free cash flow

Value-creating
M&A

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Strategy well aligned with sustainable development goals

Nutrition
& Health

Climate
& Energy

Resources
& Circularity

Please see DSM’s Integrated Annual Report 2019 for definitions and additional information

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Continued step-up in sustainability leadership
(for definitions and detailed data see 2018 Integrated Annual Report)

~17% 2.3% 50% 74% 0.28 20% 63%

Realization
2019 GHG Energy Employee Safety
Purchased Brighter
structural efficiency engagement Frequency Female
renewable Living
improvement improvement favorable Recordable executives
electricity Solutions
(vs. 2016) year-on-year score Index

30% >1% average

75% >75% <0.25 25% >65%
Ambitions by 2030 annually
by 2030 by 2021 by 2021 by 2021 by 2021
(vs. 2016) till 2030

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Committed to our responsibilities to society

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A purpose-led strategy comes
with recognition
• Best UN Sustainable Development Goals Award at the Sustainable
Business Awards Singapore 2019
• Forbes Global 2000: the World's Best Employers
• Listed in inaugural Financial Times Diversity Leaders, a ranking on
companies in 10 European countries on a diverse and inclusive workplace
• Ranked in Fast Company's '2019 The Most Innovative Companies in China
50’
• Named for the 9th consecutive year in the Great Place to Work list in
Brazil
• Ranked #1 globally by Sustainalytics, AAA rating in MSCI, Prime score in
ISS-Oekom, and a leading position in Vigeo and platinum status in
Ecovadis rating
• Climate change strategy received an A- rating from CDP

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Focus domain:
Nutrition & Health
Case study examples

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Commercial-scale production of
fermentative Stevia sweetener
commences
• As consumers around the world strive for healthier
lifestyles, food & beverage manufacturers are
looking to deliver zero-calorie sweeteners that can
support their choices.

• We joined forces with Cargill in the 50:50 joint

partnership Avansya to meet this demand. A year
later, production of EverSweet™ — a non-artificial,
zero-calorie, great-tasting stevia sweetener —
started at a new facility in Blair (Nebraska, USA).

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Expanding our digital capabilities
in personalized nutrition

• Vitamins, nutritional lipids and minerals are

essential for human health and well-being, and a
balanced and nutritious diet is key to prevent
diseases. There is a growing interest worldwide in
personalized nutrition tailored to consumers'
specific health goals and needs.

• Our personalized nutrition partnerships help

individuals take responsibility for their health,
reducing their exposure to a wide range of non-
communicable diseases and helping to lower
healthcare costs.

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New vitamin A form for
plant-based diets

• Vitamin A plays an essential role in supporting healthy

vision, growth, development, the immune function and
the improvement of gut health.

• More than 46% of consumers worldwide today are

looking for an increasingly plant-based diet, with
consumer demand growing for vegetarian and vegan
options. To meet this rising demand, we launched a
new form of vitamin A, supporting plant-based diets.

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Combating skin cancer through
innovative approaches to UV
protection
• An astonishing 3 million cases of skin cancer are diagnosed
each year. In the US alone, more than 2 people die of the
disease every hour. Despite the known risks, however, many
people do not protect themselves adequately from the
harmful effects of the sun's ultra-violet (UV) rays.

• Our UV filters and sensory modifiers offer protection from

the suffering associated with sun-related skin cancer. To
help raise awareness of the importance of sun protection,
we have been working with the professional cycling team,
Team Sunweb, to showcase a powerful example of men
building sun protection into their daily safety routine.

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Delivering a clear vision for eye
treatment.

• Approximately 1.3 billion people around the world

suffer some form of vision impairment. About 80% is
considered avoidable. A key success factor in any eye
therapy is the application of the right dosage of
medicine in the right place over time.

• With our alternative to traditional eye drug delivery

systems, we are helping people to live healthier lives.

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Focus domain:
Climate & Energy
Case study examples

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How cows can help us fight climate
change one burp at a time

• Methane is a greenhouse gas which, contributes to

climate change. Ruminants (mainly cows) emit about
20% of all methane gasses globally.

• A quarter of a teaspoon per cow of our feed additive

per day inhibits the enzyme that triggers methane
production in a cow's stomach and reduces methane
emissions by ~30%, significantly reducing the
environmental footprint of dairy and beef products, a
key source of protein around the world.

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Delivering sustainable mobility

• Original Equipment Manufacturers are continuously

looking for smart engine solutions to meet ever stricter
automotive emissions standards.

• Our range of advanced engineering plastics with high

heat and abrasion resistance and low friction helps our
customers to reduce emissions from cars, combatting
climate change while simultaneously complying with
emission legislation.

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A cleaner future for China’s
shipping industry

• We are helping the Chinese shipping industry to

reduce annual VOC emissions by leading the transition
to waterborne container coatings, which contain up to
eight times fewer VOCs than their solvent-borne
equivalents.

• As a result of this initiative, 99% of containers

manufactured in China have been produced using
waterborne coatings since April 2017.

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Making solar technology
more viable

• Today, there are still some 1.2 billion people in the

world with little or no access to electricity. Emerging
new solar materials will be a key factor in ensuring
clean and affordable energy for all.

• With our solar material innovations, we are helping

the industry to move closer to making solar energy
accessible to everyone.

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Focus domain:
Resources & Circularity
Case study examples

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Solution for sustainable
animal protein

• Our feed ingredient Balancius™ supplemented to the broiler

diet improves digestion and nutrient absorption, helping
farmers to get more from their feed and also to reduce
greenhouse gas emissions.

• It improves the Feed Conversion Ratio of broilers by ~3%.

This improvement on the broiler meat market would result in
a reduction of ~9 million tons of CO2 emissions, equal to the
removal of ~3.7 million cars from the road.

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Omega-3 rich in EPA and DHA
from natural marine algae

• Fish is an important source of nutrition. Oily fish – and

especially salmon – is also a rich source of the two-
essential omega-3 fatty acids EPA and DHA, which are
vital for brain, eye and heart health.

• DSM and Evonik have joined forces to create Veramaris®

an algal oil containing EPA and DHA for fish feed. This
way we help to conserve wild fish stocks and enable the
aquaculture industry to grow sustainably.

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Creating better-tasting nutritious,
plant-based foods

• Whether for personal, health or sustainability reasons, more

and more people are adopting vegan, vegetarian and
flexitarian diets. We have developed an innovative way of
making a previously untapped source of plant protein
available at scale.

• Our CanolaPRO® isolates plant protein from what remains of

canola seeds after these have been pressed to produce
vegetable oil and makes the protein available for human
consumption. It can be added to vegetarian and vegan foods
to improve texture and taste, or to enrich the protein levels.

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Fully recyclable
carpets & mattresses

• Most of the bulkiest waste items in the world are made

of complex combinations of materials glued together so
as not to come apart. Mattresses and carpets eventually
end up in landfill or else have to be incinerated as they
cannot be recycled.

• Niaga®, focuses on the redesign of everyday products for

full recyclability.

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