Corporate Activities

Any consolidated activities that are outside the three reporting clusters are reported as Corporate Activities. These comprise operating and service activities, as well as a number of costs that cannot be allocated to the clusters. While this segment reports net sales from its service units to third parties, it normally has a negative operating result.

Corporate Activities includes various holding companies, regional holdings and corporate overheads. The most significant cost elements are corporate departments and the share-based compensation for the company.

Corporate Activities

x € million
2016
2015
   
Net sales
71
76
   
Adjusted EBITDA
(105)
(122)
Adjusted operating profit
(141)
(169)
Capital expenditure
16
24
   
R&D operating expenditure
22
16
   
Workforce at 31 December (headcount)
2,447
2,716

DSM Insurances

The company retains a limited part of its material damage and business interruption and product liability risks via DSM’s captive insurance company. In 2016, the total retained damages were €2.2 million.

Corporate Research

The Corporate Research Program (CRP) is aimed at developing key Science & Technology competences. The CRP, which falls under the responsibility of the Chief Technology Officer, typically funds competence development programs with a longer time horizon than those run by the business groups, and focus on competences that have a broader relevance for DSM. The CRP also supports Science & Technology programs that are carried out with external parties and programs covering relevant new trends.

Share-based payments

Under the DSM Stock Incentive Plan, performance-based and non-performance-based stock options are granted to senior management, and non-performance-based stock options are granted to certain employees in the Netherlands. The costs of these share-based payments amount to €24 million (2015: €23 million) and are reported under Corporate Activities. For detailed information, see Share-based compensation.