DSM Updates Financial Markets At Its Capital Markets Day

HEERLEN, Netherlands, Sept. 26, 2013 (GLOBE NEWSWIRE) --
Royal DSM, the global Life Sciences and Materials Sciences company, is todayproviding a review of its strategic progress and an update on its 2015 targetsat its annual Capital Markets Day being held in Vaalsbroek, The Netherlands. DSMis also providing an update on current trading conditions.Feike Sijbesma, CEO and Chairman of the DSM Managing Board, said: "Three yearsago we announced our strategy DSM in Motion: driving focused growth, setting outambitious targets and aspirations. Since then we have significantly transformedour portfolio, which has resulted in more stable, higher quality earnings. Thisprogress is being underpinned by an extensive Profit Improvement Program. DSMremains firmly on track to achieve the strategic objectives set out in 2010 andour focus will continue to be on improving profitability".At the Capital Markets Day DSM will address:  * The transformation of the portfolio, which is well aligned to global    megatrends, and supported by the four compelling growth drivers (high growth    economies, innovation, sustainability and acquisitions & partnerships).  * The strong strategic progress that has been achieved in the past 3 years,    including a total of €2.8 billion in value enhancing acquisitions (of which    €2.4 billion have been in Nutrition).  * Its shift to becoming a truly global company. DSM is well positioned for    accelerated growth in High Growth Economies, where approximately 40% of    sales are currently realized.  * Innovation and sustainability, both of which are driving future growth and    profitability. The three exciting Emerging Business Areas: Bio-based    Products and Services, Biomedical and Advanced Surfaces are creating very    interesting new business opportunities.  * Its updated targets for 2015. These targets reflect a transformed portfolio    and market dynamics and include a new group EBITDA margin target of 14-15%    with a ROCE target of 11-12%.Furthermore, DSM will outline its priorities for the coming two years:  * Completing the strategic actions for DSM Pharmaceutical Products and Polymer    Intermediates  * Integrating the acquired companies, capturing full synergies and driving    organic growth  * Improving the operational performance of its businessesDuring the Capital Markets Day DSM will also further detail the current marketconditions:  * The challenging macro-economic environment experienced during H1 2013    continues, with little or no growth in Europe. Asia continues to show good    levels of economic activity, though at more modest levels, while the US    maintains a modest rate of recovery.  * Nutrition is expected to show clearly higher results than in 2012 due to    organic growth moving towards the target of 2% above GDP and the    acquisitions made, with EBITDA margins well within the 20-23% range.    However, the recovery in animal protein markets remains fragile, currently    leading to some pricing pressure especially in Vitamin E.  Additionally,    fish oil-based Omega 3 sales are being impacted by somewhat lower consumer    demand following recent sharp retail price increases. Overall, the    compelling growth drivers of the Nutrition business remain unchanged.  * Business conditions in Pharma remain challenging, but DSM is confident that    it will be able to deliver substantially better results, notwithstanding the    usual uneven delivery patterns between quarters.  * Performance Materials is expected to show improved results in 2013, despite    the negative effects of caprolactam.  * Polymer Intermediates is expected to show lower results than in 2012.  * For the Innovation Center the result of the second half of 2013 is expected    to be in line with the second half of 2012.Overall, DSM expects a significant increase in EBITDA during 2013 from the €1.1billion realized in 2012. This is a result of stronger organic growth, supportedby DSM's Profit Improvement Program, as the benefits of acquisitions and a moreresilient portfolio are having an increased impact. Foreign exchange rates andthe recently announced Dutch "crisis tax" renewal are likely to have a negativeimpact on EBITDA. Overall, based on current economic assumptions, DSM continuesto expect to move towards its 2013 EBITDA target of €1.4 billion. Thecombination of the above factors could however result in an EBITDA for 2013slightly below €1.35 billion.Share repurchase program to cover existing option plansIn Q4 2013 DSM expects to launch a share repurchase program for 4-5 millionshares to cover its commitments under existing management and personnel optionplans, which is anticipated to continue into Q1 2014.Webcast and presentationsThe DSM Capital Markets Day can be followed live via audio webcast from 13.30hrs onwards. Today's presentations can be found on www.dsm.com as from 13.30hrs.Media callToday DSM will hold a conference call for the media from 08.30 AM to 09.00 AMCET. Members of the media can participate by dialing +31 (0)20 531 5871 or +44(0) 203 365 3210.DSM - Bright Science. Brighter Living.(TM)Royal DSM is a global science-based company active in health, nutrition andmaterials. By connecting its unique competences in Life Sciences and MaterialsSciences DSM is driving economic prosperity, environmental progress and socialadvances to create sustainable value for all stakeholders. DSM deliversinnovative solutions that nourish, protect and improve performance in globalmarkets such as food and dietary supplements, personal care, feed,pharmaceuticals, medical devices, automotive, paints, electrical andelectronics, life protection, alternative energy and bio-based materials. DSM's23,500 employees deliver annual net sales of around €9 billion. The company islisted on NYSE Euronext. More information can be found www.dsm.com.Or find us on:For more information: DSM Corporate Communications     DSM Investor Relations Herman Betten                    Dave Huizing tel. +31 (0) 45 5782017          tel. +31 (0) 45 5782864 e-mail media.relations@dsm.com   e-mail investor.relations@dsm.comPress release-pdf: http://hugin.info/130663/R/1731486/578885.pdf[HUG#1731486]

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