Corporate Activities - Annual Report 2015 - DSM

Corporate Activities

Any consolidated activities and businesses 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 and corporate overheads. The most significant cost elements are corporate departments and the share-based compensation for the company.

Table 1: Corporate Activities

Corporate Activities
x € million
Net sales
Operating profit plus depreciation and amortization (EBITDA)
Operating profit
Capital expenditure
R&D operating expenditure
Workforce at 31 December (headcount)
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 2015, the total retained damages were €24 million.

Corporate Research

The Corporate Research Program (CRP) is aimed at developing key Science & Technology competences. As compared to business group-funded Science & Technology activities, the CRP, which falls under the responsibility of the Chief Technology Officer, typically funds competence development programs with a longer time horizon and with focus on competences that have a broad 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. The costs of these share-based payments are reported under Corporate Activities. For detailed information see note 28 of the 'Consolidated financial statements' on Share-based compensation.

Sitech Services

Sitech Services provides manufacturing services, park services and Safety, Health & Environment services for the Chemelot industrial site in Sittard-Geleen (Netherlands).

Sitech Services was reported under Corporate Activities until the end of July 2015, when the 65% stake in Sitech Services which DSM held via its caprolactam and acrylonitrile businesses was transferred to ChemicaInvest following the establishment of the partnership. DSM retains a 5% shareholding in Sitech Services via DSM Engineering Plastics.