Consolidated statements

Consolidated income statement

x € million
Notes
2016
2015
 
 
Continuing operations
Discontinued operations1
Total
Continuing operations
Discontinued operations1
Total
 
 
      
Net sales
7,920
-
7,920
7,722
1,213
8,935
Cost of sales
(5,262)
-
(5,262)
(5,413)
(1,190)
(6,603)
Gross margin
 
2,658
-
2,658
2,309
23
2,332
 
 
      
Marketing and sales
 
(1,132)
-
(1,132)
(1,060)
(59)
(1,119)
Research and development
 
(309)
-
(309)
(332)
(8)
(340)
General and administrative
 
(552)
-
(552)
(534)
(11)
(545)
Other operating income
 
109
-
109
86
6
92
Other operating expense
 
(89)
(28)
(117)
(107)
(9)
(116)
 
(1,973)
(28)
(2,001)
(1,947)
(81)
(2,028)
 
 
      
Operating profit
 
685
(28)
657
362
(58)
304
Financial income
23
-
23
10
3
13
Financial expense
(156)
-
(156)
(174)
(13)
(187)
 
 
      
Profit before income tax expense
 
552
(28)
524
198
(68)
130
Income tax expense
(89)
-
(89)
(46)
(22)
(68)
Share of the profit of associates and joint ventures
(38)
-
(38)
30
-
30
Other results related to associates and joint ventures
232
-
232
-
-
-
 
 
      
Profit for the year
 
657
(28)
629
182
(90)
92
 
 
      
Of which:
 
      
Profit attributable to non-controlling interests
8
-
8
(2)
6
4
Net profit attributable to equity holders of Koninklijke DSM N.V.
 
649
(28)
621
184
(96)
88
 
 
      
Dividend on cumulative preference shares
 
(4)
-
(4)
(10)
-
(10)
 
 
      
Net profit available to holders of ordinary shares
 
645
(28)
617
174
(96)
78
 
 
      
Earnings per share (EPS) (in €):
 
      
- Net basic EPS
3.68
(0.16)
3.52
1.00
(0.55)
0.45
- Net diluted EPS
3.67
(0.16)
3.51
1.00
(0.55)
0.45

1 See disposals in Note 3, 'Change in the scope of the consolidation'

Please refer to Note 2 'Alternative performance measures' for the reconciliation to Adjusted EBITDA of €1,262 million and other adjusted IFRS performance measures.

Consolidated statement of comprehensive income

x € million
2016
2015
   
Items that will not be reclassified to profit or loss
  
Remeasurements of defined benefit pension plans
(8)
(60)
Exchange differences on translation of foreign operations relating to the non-controlling interests
-
14
Equity accounted investees - share of Other comprehensive income
(6)
1
   
Items that may subsequently be reclassified to profit or loss
  
Exchange differences on translation of foreign operations
  
- Change for the year
216
78
- Reclassification adjustment to the income statement related to discontinued operations
(19)
(59)
Fair value reserve
  
- Change for the year
7
6
- Reclassification adjustment to the income statement
-
-
Hedging reserve
  
- Change for the year
(52)
(52)
- Reclassification adjustment to the income statement
52
51
- Reclassification adjustment to deferred items
(4)
(4)
   
Equity accounted investees - share of Other comprehensive income
(1)
(18)
   
Other comprehensive income, before tax
185
(43)
   
Income tax (expense)/income relating to:
  
- Remeasurements of defined benefit plans
5
3
- Exchange differences on translation of foreign operations
1
25
- Fair value reserve
-
-
- Hedging reserve
2
(27)
Total income tax (expense) / income
8
1
   
Other comprehensive income, net of tax
193
(42)
   
Profit for the year
629
92
   
Total comprehensive income
822
50
   
Of which:
  
- Attributable to non-controlling interests
8
17
- Attributable to equity holders of Koninklijke DSM N.V.
814
33

Consolidated balance sheet at 31 December

x € million
Notes
2016
2015
 
 
  
Assets
 
  
Non-current assets
 
  
Intangible assets
3,188
3,228
Property, plant and equipment
3,325
3,171
Deferred tax assets
355
366
Share in associates and joint ventures
586
644
Other financial assets
463
419
 
 
7,917
7,828
Current assets
 
  
Inventories
1,800
1,627
Trade receivables
1,504
1,349
Income tax receivables
62
71
Other current receivables
87
136
Financial derivatives
40
47
Current investments
944
9
Cash and cash equivalents
604
665
 
 
5,041
3,904
Assets held for sale
-
11
 
 
5,041
3,915
Total
 
12,958
11,743
 
 
  
Equity and liabilities
 
  
Equity
  
Shareholders' equity
 
6,072
5,541
Non-controlling interests
108
90
 
 
6,180
5,631
Non-current liabilities
 
  
Deferred tax liabilities
278
319
Employee benefits liabilities
490
496
Provisions
128
98
Borrowings
2,552
2,557
Other non-current liabilities
158
228
 
 
3,606
3,698
Current liabilities
 
  
Employee benefits liabilities
40
44
Provisions
54
41
Borrowings
853
253
Financial derivatives
253
232
Trade payables
1,376
1,168
Income tax payables
56
32
Other current liabilities
540
642
 
 
3,172
2,412
Liabilities held for sale
-
2
 
 
3,172
2,414
Total
 
12,958
11,743

Consolidated statement of changes in equity (Note 16)

x € million
Share
capital
Share
premium
Treasury
shares
Other
reserves
Retained earnings1
Total
Non-controlling
interests
Total
equity
         
Balance at 1 January 2015
338
489
(349)
166
5,079
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)
6
(1)
-
(1)
         
Total comprehensive income
-
-
-
(2)
35
33
17
50
         
Balance at 31 December 2015
338
489
(319)
171
4,862
5,541
90
5,631
         
Dividend
-
-
-
-
(296)
(296)
(5)
(301)
Options / performance shares granted
-
-
-
32
-
32
-
32
Options / performance shares
exercised / cancelled
-
-
-
(30)
30
-
-
-
Proceeds from reissued shares
-
-
253
-
-
253
-
253
Change in DSM's share in subsidiaries
-
-
-
-
-
-
15
15
Repurchase of shares
-
-
(273)
-
-
(273)
-
(273)
Reclassification
-
-
-
20
(20)
-
-
-
Other
-
-
-
-
1
1
-
1
         
Total comprehensive income
-
-
-
203
611
814
8
822
         
Balance at 31 December 2016
338
489
(339)
396
5,188
6,072
108
6,180

1 As of 2016, Actuarial gains and losses and Other retained earnings have been grouped together in Retained earnings. See also Note 16 for movements within the Actuarial gains and losses.

Consolidated cash flow statement (Note 26)

x € million
2016
2015
     
Operating activities
    
Profit for the year
 
629
 
92
Share of the profit of associates and joint ventures
 
(194)
 
(30)
Income tax
 
89
 
68
Profit before income tax expense
 
524
 
130
Financial income and expense
 
133
 
174
Operating profit1
 
657
 
304
Depreciation, amortization and impairments
 
489
 
742
Earnings before interest, tax, depreciation and amortization (EBITDA)1
 
1,146
 
1,046
Adjustments for:
    
- (Gain) or loss from disposals
(3)
 
(6)
 
- Acquisition/divestment related in EBITDA
15
 
12
 
- Change in provisions
20
 
4
 
- Defined benefit plans
(27)
 
(60)
 
 
5
 
(50)
 
Income tax received
7
 
4
 
Income tax paid
(84)
 
(79)
 
Settlement intercompany hedges
-
 
(218)
 
Other
33
 
5
 
Changes, excluding working capital
 
(39)
 
(338)
     
Operating cash flow before changes in working capital
 
1,107
 
708
Changes in operating working capital:
    
- Inventories
(138)
 
45
 
- Trade receivables
(115)
 
(65)
 
- Trade payables
195
 
(32)
 
 
(58)
 
(52)
 
Changes in other working capital
(31)
 
40
 
Changes in working capital
 
(89)
 
(12)
     
Cash provided by operating activities
 
1,018
 
696

1 Please refer to Note 2 'Alternative performance measures' for the reconciliation to Adjusted EBITDA of €1,262 million and other adjusted IFRS performance measures

Consolidated cash flow statement (Note 26) continued

x € million
2016
2015
     
Cash provided by operating activities
 
1,018
 
696
     
     
Investing activities
    
Capital expenditure for:1
    
- Intangible assets
(63)
 
(74)
 
- Property, plant and equipment
(413)
 
(458)
 
Payments regarding drawing rights
(19)
 
(11)
 
Proceeds from disposal of property, plant and equipment
4
 
10
 
Acquisition of subsidiaries and associates
4
 
(86)
 
Cash from net investment hedge
-
 
(136)
 
Disposal of subsidiaries, businesses and associates
80
 
297
 
Change in fixed-term deposits
(936)
 
(2)
 
Interest received
40
 
66
 
Other financial assets:
    
- Capital payments and acquisitions
(35)
 
(52)
 
- Dividends received
152
 
144
 
- Change in loans granted
(11)
 
27
 
- Proceeds from disposals
3
 
-
 
     
Cash used in investing activities
 
(1,194)
 
(275)
     
Financing activities
    
Capital payments from / to non-controlling interests
6
 
1
 
Loans taken up
749
 
1,004
 
Repayment of loans
(4)
 
(653)
 
Change in debt to credit institutions
(11)
 
18
 
Repayment of commercial paper
(150)
 
(250)
 
Dividend paid
(190)
 
(174)
 
Interest paid
(151)
 
(303)
 
Proceeds from reissued treasury shares
137
 
39
 
Repurchase of shares
(273)
 
(122)
 
     
Cash from / used in financing activities
 
113
 
(440)
     
Change in cash and cash equivalents
 
(63)
 
(19)
     
Cash and cash equivalents at 1 January
 
665
 
669
Exchange differences relating to cash held
 
2
 
15
     
Cash and cash equivalents at 31 December
 
604
 
665

1 An amount of €1 million included in capital expenditure was funded by customers (2015: €7 million)