Strategy 2018: Driving Profitable Growth

Over recent years, DSM has been transformed into a truly global company that provides innovative, sustainable solutions in health, nutrition and materials. DSM’s Strategy 2018: Driving Profitable Growth focuses on capturing the potential of the business portfolio that has been created and translating this into improved financial results. In the period 2016-2018, we aim to step up our financial performance while pursuing our ambitions in the area of sustainability and expanding our positive impact on the world around us.

New Strategy

Our Strategy 2018 aims to unlock the tremendous potential that DSM’s business portfolio offers, out-pacing growth in our markets through innovative solutions addressing important global issues, capturing the benefits of organizational optimization and helping our employees fully develop their skills and talents.

Philip EykermanDSM Executive Committee

Read more about DSM's Strategy 2018

Strategic targets & progress 2016

Having designed DSM’s strategy update in 2015, the year 2016 has been about implementing Strategy 2018 in our organization and in our markets.

Financial targets 2016-2018

DSM's Strategy 2018: Driving Profitable Growth focuses on capturing the potential of the business portfolio that has been created and translating this into improved financial results.

Financial targets 2016-2018
Realization 2016
  
High single-digit percentage annual Adjusted EBITDA growth
17%
High double-digit bps annual ROCE growth
280 bps

Sustainability aspirations 2020

Besides improving the financial outcomes, we are also stepping up our sustainability aspirations with Stratgey 2018, both in our own operations and in the positive impact we want to have on the wold around us.

Sustainability aspirations 2020
Realization 2016
  
Dow Jones Sustainability World Index
 
Top ranking (RobecoSAM Gold Class)
Industry leader
Brighter Living Solutions
 
65% ECO+/People+ (running business)
63%
GHG Efficiency Improvement
 
40-45% (2008-2025)
23%
Employee Engagement Index
 
Toward 75% favorable
71%
Safety
 
0.25 Frequency Index of Recordable Injuries
0.33
Diversity
 
25% Female executives
15%
60% Executives from under-represented nationalities
53%

Read more about DSM's strategic progress in 2016

How DSM creates value

DSM’s strategy is aimed at driving profitable growth through science-based, sustainable solutions based on the defining megatrends of our time. By using its unique competences in health, nutrition and materials, DSM is fostering economic prosperity, environmental progress and social advances to create value for all stakeholders simultaneously.

Value Creation Model

  • ×
    • Employees
    • Training & development
    • Stakeholder engagement & Public-Private Partnerships
    • Philanthropy & sponsoring
  • ×
    • Raw materials (including renewables)
    • Energy (including renewables)
    • Water
  • ×
    • Shareholder equity
    • Borrowings
    • Partnerships & open innovation
    • Purchased goods & services
    • Manufacturing asset base
  • ×
    • Safety & health
    • Brighter Living Solutions
    • Engaged workforce
    • Skills & employability
    • Employee benefits
    • Improved nutrition
  • ×
    • Reduced environmental footprint
    • Brighter Living Solutions
    • Enabling transition to (bio-) renewable & circular economy
    • Safer ingredients & materials
  • ×
    • Financial performance (Adjusted EBITDA & ROCE growth)
    • Dividend
    • Contribution to business success for customers & suppliers
    • Contribution to civil society via tax
    • Patents & royalties
  • ×
    • Better fed & healthier individuals and communities
    • More prosperous and resilient employees for the company and in its value chain
  • ×
    • More sustainable use of resources, for the company and in its value chain
    • Products that contribute to safer, healthier working & living environments
  • ×
    • Driving Profitable Growth through science-based sustainable solutions
    • Sustainable returns to investors
    • Positive contribution to economic growth in the countries & markets in which DSM operates

Human capital

DSM employs skilled and talented people from diverse backgrounds. DSM strives to provide employees with a safe and inspiring workplace as well as with the tools and training they need to be effective and to develop their abilities. DSM rewards employees with competitive benefit packages.

Societal & relationship capital

DSM engages with various stakeholders to ensure close alignment between the company’s aims and societal needs. DSM generates value for stakeholders outside its direct value chains of employees, suppliers, customers and end-users; these include employees’ families, governments, local communities and civil society.

Natural capital

DSM recognizes that the world is an interconnected system of resources. For DSM this represents a responsibility and a business opportunity. DSM aims to reduce the environmental impact of its supply chain, operations and products and services, while developing innovative solutions that deliver sustainability benefits to customers and beyond.

Financial capital

Providers of capital – shareholders and bondholders, banks and the financial markets – supply funds that DSM uses in its business to create value, driving growth and delivering sustainable returns.

Intellectual capital

DSM manufactures and distributes high-quality products and services safely, efficiently and responsibly and strives to develop valuable, collaborative and long-term relationships with customers and suppliers. DSM pursues open innovation, connecting and collaborating with partners and investing in start-ups.

Manufactured capital

DSM has unique competences in life sciences and materials sciences and connects these to deliver innovative solutions that nourish, protect and improve performance.

Read more about how DSM engages with stakeholders

Brighter Living Solutions

In 2016, DSM launched the Brighter Living Solutions program in order to steer products and innovations that are better for people and the planet. The program combines DSM's ECO+ and People+ programs to drive focused growth and develop sustainability into a strategic and successful growth driver. Brighter Living Solutions create shared value for DSM's stakeholders and differentiate DSM through their positive impact on society and the environment.

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