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
2017
2016
   
Net sales
59
71
   
Adjusted EBITDA
(105)
(105)
Adjusted operating profit
(144)
(141)
Capital expenditure
12
16
   
R&D operating expenditure
20
22
   
Workforce at 31 December (headcount)
2,058
2,447

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 2017, the total retained damages were €23 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 focuses 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

Executives participate in the Long-Term Incentive (LTI) scheme linking their reward to longer-term stakeholder interests and providing an attraction and retention vehicle. As shares / share units have become more prevalent in the market, the switch from stock options to shares / share units was made in 2017, resulting in better alignment with the LTI vehicle in place for the Managing Board and Executive Committee and aiming for an even closer alignment with the interests of DSM's stakeholders. Because of this switch, the company has reduced its hedge obligations. For detailed information, see Share-based compensation of the 'Consolidated financial statements'.