DCSIMG
Consolidated statements - Annual Report 2015 - DSM

Consolidated statements

Table 1: Consolidated income statement for the year ended 31 December 2015

Consolidated income statement for the year ended 31 December 2015
x € million
Notes
Continuing operations
Discontinued
operations
Total
Before
exceptional
items
Exceptional
items
(note 6)
Total
   
 
 
         
Net sales
4
7,722
-
7,722
1,213
8,935
Cost of sales
4
(5,271)
(142)
(5,413)
(1,190)
(6,603)
Gross margin
 
2,451
(142)
2,309
23
2,332
 
 
         
Marketing and sales
 
(1,060)
-
(1,060)
(59)
(1,119)
Research and development
 
(330)
(2)
(332)
(8)
(340)
General and administrative
 
(512)
(28)
(540)
(16)
(556)
Other operating income
 
64
12
76
6
82
Other operating expense
 
(40)
(51)
(91)
(4)
(95)
 
4
(1,878)
(69)
(1,947)
(81)
(2,028)
 
 
         
Operating profit
 
573
(211)
362
(58)
304
Interest costs
5
(138)
-
(138)
(13)
(151)
Other financial income and expense
5
(11)
(15)
(26)
3
(23)
 
 
         
Profit before income tax expense
 
424
(226)
198
(68)
130
Income tax expense
7
(97)
51
(46)
(22)
(68)
Share of the profit of associates and joint ventures
 
54
(24)
30
-
30
 
 
         
Profit for the year
 
381
(199)
182
(90)
92
Reclassification of the net result from activities disposed of
 
-
(129)
(129)
129
-
Total
 
381
(328)
53
391
92
 
 
         
Of which:
 
         
- Profit attributable to non-controlling interests
18
(2)
-
(2)
6
4
- Net profit attributable to equity holders of Koninklijke DSM N.V.
 
383
(328)
55
33
88
 
 
         
Net profit attributable to equity holders of Koninklijke DSM N.V.
 
383
(328)
55
33
88
Dividend on cumulative preference shares
 
(10)
-
(10)
-
(10)
 
 
         
Net profit available to holders of ordinary shares
 
373
(328)
45
33
78
 
 
         
Earnings per share (in €)
17
         
- Basic
 
   
1.00
 
0.45
- Diluted
 
   
1.00
 
0.45
1 Excluding exceptional items

Table 2: Consolidated income statement for the year ended 31 December 2014

Consolidated income statement for the year ended 31 December 20141
x € million
Notes
Continuing operations
Discontinued
operations
Total
Before
exceptional
items
Exceptional
items
(note 6)
Total
   
 
 
         
Net sales
4
7,051
-
7,051
2,232
9,283
Cost of sales
4
(4,803)
(1)
(4,804)
(2,361)
(7,165)
Gross margin
 
2,248
(1)
2,247
(129)
2,118
 
 
         
Marketing and sales
 
(921)
-
(921)
(100)
(1,021)
Research and development
 
(304)
-
(304)
(19)
(323)
General and administrative
 
(451)
(35)
(486)
(33)
(519)
Other operating income
 
53
10
63
51
114
Other operating expense
 
(38)
(34)
(72)
(7)
(79)
 
4
(1,661)
(59)
(1,720)
(108)
(1,828)
 
 
         
Operating profit
 
587
(60)
527
(237)
290
Interest costs
5
(109)
(7)
(116)
(16)
(132)
Other financial income and expense
5
7
-
7
-
7
 
 
         
Profit before income tax expense
 
485
(67)
418
(253)
165
Income tax expense
7
(84)
11
(73)
66
(7)
Share of the profit of associates and joint ventures
 
8
(66)
(58)
(1)
(59)
 
 
         
Profit for the year
 
409
(122)
287
(188)
99
Reclassification of the net result from activities disposed of
 
-
(196)
(196)
196
-
Total
 
409
(318)
91
82
99
 
 
         
Of which:
 
         
- Profit attributable to non-controlling interests
18
(5)
(37)
(42)
(4)
(46)
- Net profit attributable to equity holders of Koninklijke DSM N.V.
 
414
(281)
133
12
145
 
 
         
Net profit attributable to equity holders of Koninklijke DSM N.V.
 
414
(281)
133
12
145
Dividend on cumulative preference shares
 
(10)
-
(10)
-
(10)
 
 
         
Net profit available to holders of ordinary shares
 
404
(281)
123
12
135
 
 
         
Earnings per share (in €)
17
         
- Basic
 
   
1.63
 
0.78
- Diluted
 
   
1.63
 
0.78
1 The split in results over continuing and discontinued operations in 2014 has been restated due to the disposal of the caprolactam, acrylonitrile and composite resins businesses (now included under discontinued operations). See also note 1 General information and note 2 Change in the scope of the consolidation.
2 Excluding exceptional items.

Table 3: Consolidated statement of comprehensive income

Consolidated statement of comprehensive income
x € million
2015
2014
     
Items that will not be reclassified to profit or loss
   
Remeasurements of defined benefit pension plans
(59)
(176)
Exchange differences on translation of foreign operations relating to the non-controlling interests
14
28
     
Items that may subsequently be reclassified to profit or loss
   
Exchange differences on translation of foreign operations
   
- Change for the year
57
278
- Reclassification adjustment to the income statement related to discontinued operations
(59)
-
Fair value reserve
   
- Change for the year
8
4
- Reclassification adjustment to the income statement
-
-
Hedging reserve
   
- Change for the year
(51)
(174)
- Reclassification adjustment to the income statement
51
(9)
- Reclassification adjustment to the shares / deferred items
(4)
2
     
Other comprehensive income, before tax
(43)
(47)
Income tax expense
1
56
Other comprehensive income, net of tax
(42)
9
     
Profit for the year
92
99
     
Total comprehensive income
50
108
     
Of which:
   
- Attributable to non-controlling interests
17
(18)
- Attributable to equity holders of Koninklijke DSM N.V.
33
126

Table 4: Consolidated balance sheet as at 31 December

Consolidated balance sheet as at 31 December
x € million
Notes
2015
2014
 
 
   
Assets
 
   
Non-current assets
 
   
Intangible assets
8
3,228
2,867
Property, plant and equipment
9
3,171
3,673
Deferred tax assets
7
366
427
Associates and joint ventures
10
872
762
Other financial assets
11
191
130
 
 
7,828
7,859
Current assets
 
   
Inventories
12
1,627
1,739
Trade receivables
13
1,349
1,570
Other current receivables
13
207
199
Financial derivatives
24
47
47
Current investments
14
9
6
Cash and cash equivalents
15
665
669
 
 
3,904
4,230
Assets held for sale
2
11
37
 
 
3,915
4,267
Total
 
11,743
12,126
 
 
   
Equity and liabilities
 
   
Equity
16
   
Shareholders' equity
 
5,541
5,723
Non-controlling interests
18
90
213
 
 
5,631
5,936
Non-current liabilities
 
   
Deferred tax liabilities
7
319
365
Employee benefits liabilities
25
496
479
Provisions
19
98
105
Borrowings
20
2,557
1,637
Other non-current liabilities
21
228
81
 
 
3,698
2,667
Current liabilities
 
   
Employee benefits liabilities
25
44
45
Provisions
19
41
42
Borrowings
20
253
1,143
Financial derivatives
24
232
362
Trade payables
22
1,168
1,361
Other current liabilities
22
674
554
 
 
2,412
3,507
Liabilities held for sale
2
2
16
 
 
2,414
3,523
Total
 
11,743
12,126

Table 5: Consolidated statement of changes in equity (note 16)

Consolidated statement of changes in equity (note 16)
x € million
Share
capital
Share
premium
Treasury
shares
Other
reserves
Retained earnings
Total
Non-controlling
interests
Total
equity
Actuarial
gains and
losses
Other
                   
Balance at 1 January 2014
338
489
(294)
35
13
5,327
5,908
188
6,096
                   
Dividend
-
-
-
-
-
(301)
(301)
(6)
(307)
Options / performance shares granted
-
-
-
19
-
-
19
-
19
Options / performance shares
exercised / cancelled
-
-
-
(11)
-
11
-
-
-
Proceeds from reissued shares
-
-
134
-
-
26
160
-
160
Change in DSM's share in subsidiaries
-
-
-
-
-
-
-
49
49
Repurchase of shares
-
-
(189)
-
-
-
(189)
-
(189)
Other
-
-
-
-
7
(7)
-
-
-
                   
Total comprehensive income
-
-
-
123
(142)
145
126
(18)
108
                   
Balance at 31 December 2014
338
489
(349)
166
(122)
5,201
5,723
213
5,936
                   
Dividend
-
-
-
-
-
(297)
(297)
(13)
(310)
Options / performance shares granted
-
-
-
29
-
-
29
-
29
Options / performance shares
exercised / cancelled
-
-
-
(15)
-
15
-
-
-
Proceeds from reissued shares
-
-
152
-
-
24
176
-
176
Change in DSM's share in subsidiaries
-
-
-
-
-
-
-
(127)
(127)
Repurchase of shares
-
-
(122)
-
-
-
(122)
-
(122)
Other
-
-
-
(7)
2
4
(1)
-
(1)
                   
Total comprehensive income
-
-
-
(2)
(56)
91
33
17
50
                   
Balance at 31 December 2015
338
489
(319)
171
(176)
5,038
5,541
90
5,631

Table 6: Consolidated cash flow statement (note 27)

Consolidated cash flow statement (note 27)
x € million
2015
2014
         
Operating activities
       
Profit for the year
 
92
 
99
Share of the profit of associates
 
(30)
 
59
Income tax
 
68
 
7
Profit before income tax expense
 
130
 
165
Net finance costs
 
159
 
118
Exceptional items
 
361
 
334
Operating profit
 
6501
 
617
Depreciation, amortization and impairments
 
520
 
549
Earnings before interest, tax, depreciation and amortization (EBITDA)
 
1,170
 
1,166
Adjustments for:
       
- (Gain) or loss from disposals
(6)
 
(3)
 
- Restructuring and other costs
(67)
 
(30)
 
- Change in provisions
(43)
 
(49)
 
- Defined benefit plans
(60)
 
(30)
 
 
(176)
 
(112)
 
Income tax received
4
 
7
 
Income tax paid
(79)
 
(89)
 
Settlement intercompany hedges
(218)
 
(122)
 
Other
7
 
32
 
Changes, excluding working capital
 
(462)
 
(284)
         
Operating cash flow before changes in working capital
 
708
 
882
Changes in operating working capital:
       
- Inventories
45
 
(8)
 
- Trade receivables
(65)
 
(31)
 
- Trade payables
(32)
 
2
 
 
(52)
 
(37)
 
Changes in other working capital
40
 
(37)
 
Changes in working capital
 
(12)
 
(74)
         
Cash provided by operating activities
 
696
 
808
1 This consists of the operating profit from continuing operations before exceptional items (€573 million) and discontinued operations (€77 million; see also Assets and liabilities held for sale in note 2 Change in the scope of the consolidation)

Table 7: Consolidated cash flow statement (note 27) continued

Consolidated cash flow statement (note 27) continued
x € million
2015
2014
         
Cash provided by operating activities
 
696
 
808
         
         
Investing activities
       
Capital expenditure for:1
       
- Intangible assets
(85)
 
(97)
 
- Property, plant and equipment
(458)
 
(556)
 
Proceeds from disposal of property, plant and equipment
10
 
13
 
Acquisition of subsidiaries and associates
(86)
 
(7)
 
Cash from net investment hedge
(136)
 
-
 
Proceeds from disposal of subsidiaries and businesses
297
 
78
 
Change in fixed-term deposits
(2)
 
14
 
Interest received
66
 
108
 
Other financial assets:
       
- Capital payments and acquisitions
(52)
 
(35)
 
- Dividends received
144
 
3
 
- Change in loans granted
27
 
(38)
 
- Proceeds from disposals
-
 
2
 
         
Cash used in investing activities
 
(275)
 
(515)
         
Financing activities
       
Capital payments from / to non-controlling interests
1
 
4
 
Loans taken up
1,004
 
532
 
Repayment of loans
(653)
 
(534)
 
Change in debt to credit institutions
18
 
(10)
 
Cash facility associates
-
 
(21)
 
Repayment / issue of commercial paper
(250)
 
250
 
Dividend paid
(174)
 
(175)
 
Interest paid
(303)
 
(302)
 
Proceeds from reissued shares
39
 
26
 
Repurchase of shares
(122)
 
(189)
 
         
Cash used in / from financing activities
 
(440)
 
(419)
         
Change in cash and cash equivalents
 
(19)
 
(126)
         
Cash and cash equivalents at 1 January
 
669
 
770
Exchange differences relating to cash held
 
15
 
25
         
Cash and cash equivalents at 31 December
 
665
 
669
1 An amount of €7 million included in capital expenditure was funded by customers (2014: €25 million)