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
2
DSM at a glance
Purpose-led science to address
the world’s challenges in nutrition,
health and sustainable living
3
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
4
Successful transformation future-proofing DSM
       Coal mining   (Petro)chemicals   Nutrition, Health & Sustainable Living
                                                                       2020
1902
5
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
6
~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%)
7
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%)
8
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
9
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
10
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
11
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
12
 Our purpose is to create brighter
 lives for all
 We are already reaching more
 than 2.5 billion people worldwide
13
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            growth company...   underpin our purpose.
                             the focus domains...
     Our key competences +   A science-based company           Company         Our 2019-2021 targets:
     addressing megatrends   active in Nutrition, Health        growth
       and the UN SDGs:       and Sustainable Living:
                                                                                 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
14
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
15
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
16
Committed to our responsibilities to society
17
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
18
Focus domain:
Nutrition & Health
Case study examples
19
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).
20
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.
21
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.
22
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.
23
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.
24
Focus domain:
Climate & Energy
Case study examples
25
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.
26
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.
27
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.
28
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.
29
Focus domain:
Resources & Circularity
Case study examples
30
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.
31
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.
32
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.
33
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.
34