Consolidated financial statements
Consolidated income statement
|
x € million
|
Notes
|
2018
|
2017
|
|
|
|||
|
Net sales
|
9,267
|
8,632
|
|
|
Cost of sales
|
(5,862)
|
(5,699)
|
|
|
Gross margin
|
|
3,405
|
2,933
|
|
|
|||
|
Marketing and sales
|
|
(1,303)
|
(1,221)
|
|
Research and development
|
|
(348)
|
(334)
|
|
General and administrative
|
|
(530)
|
(524)
|
|
Other operating income
|
|
104
|
104
|
|
Other operating expense
|
|
(83)
|
(112)
|
|
(2,160)
|
(2,087)
|
||
|
|
|||
|
Operating profit
|
|
1,245
|
846
|
|
Financial income
|
18
|
35
|
|
|
Financial expense
|
(119)
|
(139)
|
|
|
|
|||
|
Profit before income tax expense
|
|
1,144
|
742
|
|
Income tax expense
|
(194)
|
(115)
|
|
|
Share of the profit of associates and joint ventures
|
11
|
(83)
|
|
|
Other results related to associates and joint ventures
|
118
|
1,237
|
|
|
|
|||
|
Profit for the year
|
|
1,079
|
1,781
|
|
|
|||
|
Of which:
|
|
||
|
Profit attributable to non-controlling interests
|
2
|
12
|
|
|
Net profit attributable to equity holders of Koninklijke DSM N.V.
|
|
1,077
|
1,769
|
|
|
|||
|
Dividend on cumulative preference shares
|
|
(8)
|
(8)
|
|
|
|||
|
Net profit available to holders of ordinary shares
|
|
1,069
|
1,761
|
|
|
|||
|
Earnings per share (EPS) (in €):
|
|
||
|
- Net basic EPS
|
6.10
|
10.07
|
|
|
- Net diluted EPS
|
6.06
|
10.04
|
Please refer to Alternative performance measures for the reconciliation to Adjusted EBITDA of €1,822 million (2017: €1,445 million) and other adjusted IFRS performance measures.
Consolidated statement of comprehensive income
|
x € million
|
2018
|
2017
|
|
Items that will not be reclassified to profit or loss
|
||
|
Remeasurements of defined benefit pension plans
|
(77)
|
83
|
|
Fair value changes Other participating interests
|
16
|
(3)
|
|
Exchange differences on translation of foreign operations relating to the non-controlling interests
|
(1)
|
(8)
|
|
Items that may subsequently be reclassified to profit or loss
|
||
|
Exchange differences on translation of foreign operations
|
||
|
- Change for the year
|
129
|
(610)
|
|
- Reclassification adjustment to the income statement
|
14
|
(14)
|
|
Hedging reserve
|
||
|
- Change for the year
|
(44)
|
98
|
|
- Reclassification adjustment to the income statement
|
22
|
(39)
|
|
Equity accounted investees - share of Other comprehensive income
|
(4)
|
4
|
|
Other comprehensive income, before tax
|
55
|
(489)
|
|
Income tax (expense)/income relating to:
|
||
|
- Remeasurements of defined benefit plans
|
11
|
(9)
|
|
- Exchange differences on translation of foreign operations
|
2
|
(9)
|
|
- Hedging reserve
|
7
|
(7)
|
|
Total income tax (expense) / income
|
20
|
(25)
|
|
Other comprehensive income, net of tax
|
75
|
(514)
|
|
Profit for the year
|
1,079
|
1,781
|
|
Total comprehensive income
|
1,154
|
1,267
|
|
Of which:
|
||
|
- Attributable to non-controlling interests
|
1
|
4
|
|
- Attributable to equity holders of Koninklijke DSM N.V.
|
1,153
|
1,263
|
Consolidated balance sheet at 31 December
|
x € million
|
Notes
|
2018
|
2017
|
|
|
|||
|
Assets
|
|
||
|
Non-current assets
|
|
||
|
Intangible assets
|
3,090
|
3,058
|
|
|
Property, plant and equipment
|
3,511
|
3,313
|
|
|
Deferred tax assets
|
248
|
281
|
|
|
Share in associates and joint ventures
|
205
|
227
|
|
|
Financial derivatives
|
14
|
16
|
|
|
Other financial assets
|
263
|
475
|
|
|
|
7,331
|
7,370
|
|
|
Current assets
|
|
||
|
Inventories
|
1,993
|
1,848
|
|
|
Trade receivables
|
1,575
|
1,542
|
|
|
Income tax receivables
|
83
|
55
|
|
|
Other current receivables
|
80
|
93
|
|
|
Financial derivatives
|
21
|
41
|
|
|
Current investments
|
1,277
|
954
|
|
|
Cash and cash equivalents
|
1,281
|
899
|
|
|
|
6,310
|
5,432
|
|
|
|
|||
|
Total
|
|
13,641
|
12,802
|
|
|
|||
|
Equity and liabilities
|
|
||
|
Equity
|
|||
|
Shareholders' equity
|
|
7,782
|
6,962
|
|
Non-controlling interests
|
33
|
103
|
|
|
|
7,815
|
7,065
|
|
|
Non-current liabilities
|
|
||
|
Deferred tax liabilities
|
254
|
259
|
|
|
Employee benefit liabilities
|
413
|
356
|
|
|
Provisions
|
116
|
151
|
|
|
Borrowings
|
2,272
|
2,551
|
|
|
Financial derivatives
|
3
|
4
|
|
|
Other non-current liabilities
|
197
|
188
|
|
|
|
3,255
|
3,509
|
|
|
Current liabilities
|
|
||
|
Employee benefit liabilities
|
46
|
39
|
|
|
Provisions
|
37
|
53
|
|
|
Borrowings
|
380
|
77
|
|
|
Financial derivatives
|
51
|
20
|
|
|
Trade payables
|
1,430
|
1,452
|
|
|
Income tax payables
|
100
|
51
|
|
|
Other current liabilities
|
527
|
536
|
|
|
|
2,571
|
2,228
|
|
|
|
|||
|
Total
|
|
13,641
|
12,802
|
Consolidated statement of changes in equity (Note 16)
|
x € million
|
Share
capital |
Share
premium |
Treasury
shares |
Other
reserves |
Retained earnings
|
Total
|
Non-controlling
interests |
Total
equity |
|
Balance at 1 January 2017
|
338
|
489
|
(339)
|
396
|
5,188
|
6,072
|
108
|
6,180
|
|---|---|---|---|---|---|---|---|---|
|
Dividend
|
-
|
-
|
-
|
-
|
(320)
|
(320)
|
(3)
|
(323)
|
|
Options / performance shares granted
|
-
|
-
|
-
|
26
|
-
|
26
|
-
|
26
|
|
Options / performance shares
exercised / canceled |
-
|
-
|
-
|
(22)
|
22
|
-
|
-
|
-
|
|
Reissued shares
|
-
|
-
|
238
|
-
|
(5)
|
233
|
-
|
233
|
|
Change in DSM's share in subsidiaries
|
-
|
-
|
-
|
-
|
-
|
-
|
(6)
|
(6)
|
|
Repurchase of shares
|
-
|
-
|
(297)
|
-
|
-
|
(297)
|
-
|
(297)
|
|
Reclassification
|
-
|
-
|
-
|
(18)
|
18
|
-
|
-
|
-
|
|
Other
|
-
|
-
|
-
|
-
|
(15)
|
(15)
|
-
|
(15)
|
|
Total comprehensive income
|
-
|
-
|
-
|
(581)
|
1,844
|
1,263
|
4
|
1,267
|
|
Balance at 31 December 2017
|
338
|
489
|
(398)
|
(199)
|
6,732
|
6,962
|
103
|
7,065
|
|
Dividend
|
-
|
-
|
-
|
-
|
(365)
|
(365)
|
(3)
|
(368)
|
|
Options / performance shares granted
|
-
|
-
|
-
|
25
|
-
|
25
|
-
|
25
|
|
Options / performance shares
exercised / canceled |
-
|
-
|
-
|
(23)
|
23
|
-
|
-
|
-
|
|
Reissued shares
|
-
|
-
|
263
|
-
|
(21)
|
242
|
-
|
242
|
|
Change in DSM's share in subsidiaries
|
-
|
-
|
-
|
-
|
-
|
-
|
(67)
|
(67)
|
|
Repurchase of shares
|
-
|
-
|
(236)
|
-
|
-
|
(236)
|
-
|
(236)
|
|
Other
|
-
|
-
|
-
|
-
|
1
|
1
|
(1)
|
-
|
|
Total comprehensive income
|
-
|
-
|
-
|
142
|
1,011
|
1,153
|
1
|
1,154
|
|
Balance at 31 December 2018
|
338
|
489
|
(371)
|
(55)
|
7,381
|
7,782
|
33
|
7,815
|
Consolidated cash flow statement (Note 26)
|
x € million
|
2018
|
2017
|
||
|
Operating activities
|
||||
|
Profit for the year
|
1,079
|
1,781
|
||
|
Share of the profit of associates and joint ventures
|
(129)
|
(1,154)
|
||
|
Income tax
|
194
|
115
|
||
|
Profit before income tax expense
|
1,144
|
742
|
||
|
Financial income and expense
|
101
|
104
|
||
|
Operating profit1
|
1,245
|
846
|
||
|
Depreciation, amortization and impairments
|
509
|
502
|
||
|
Earnings before interest, tax, depreciation and amortization (EBITDA)1
|
1,754
|
1,348
|
||
|
Adjustments for:
|
||||
|
- (Gain) or loss from disposals
|
(22)
|
(5)
|
||
|
- Acquisition/divestment related in EBITDA
|
16
|
2
|
||
|
- Change in provisions
|
(41)
|
(3)
|
||
|
- Defined benefit plans
|
(25)
|
(61)
|
||
|
(72)
|
(67)
|
|||
|
Income tax received
|
15
|
15
|
||
|
Income tax paid
|
(122)
|
(81)
|
||
|
Share-based compensation
|
25
|
23
|
||
|
Other
|
29
|
(5)
|
||
|
Changes, excluding working capital
|
(125)
|
(115)
|
||
|
Operating cash flow before changes in working capital
|
1,629
|
1,233
|
||
|
Changes in operating working capital:
|
||||
|
- Inventories
|
(166)
|
(201)
|
||
|
- Trade receivables
|
(74)
|
(121)
|
||
|
- Trade payables
|
(6)
|
127
|
||
|
(246)
|
(195)
|
|||
|
Changes in other working capital
|
8
|
(42)
|
||
|
Changes in working capital
|
(238)
|
(237)
|
||
|
Cash provided by operating activities
|
1,391
|
996
|
||
1 Please refer to Alternative performance measures for the reconciliation to Adjusted EBITDA of €1,822 million (2017: €1,445 million) and other adjusted IFRS performance measures.
Consolidated cash flow statement (Note 26) continued
|
x € million
|
2018
|
2017
|
||
|
Cash provided by operating activities
|
1,391
|
996
|
||
|
Investing activities
|
||||
|
Capital expenditure for:1
|
||||
|
- Intangible assets
|
(108)
|
(98)
|
||
|
- Property, plant and equipment
|
(565)
|
(449)
|
||
|
Payments regarding drawing rights
|
(20)
|
(8)
|
||
|
Proceeds from disposal of property, plant and equipment
|
18
|
11
|
||
|
Acquisition of subsidiaries and associates
|
(22)
|
(242)
|
||
|
Cash from net investment hedge
|
-
|
(21)
|
||
|
Disposal of subsidiaries, businesses and associates
|
316
|
1,525
|
||
|
Additions to fixed-term deposits
|
(1,544)
|
(1,319)
|
||
|
Withdrawal from fixed-term deposits
|
1,222
|
1,286
|
||
|
Interest received
|
20
|
30
|
||
|
Other financial assets:
|
||||
|
- Capital payments and acquisitions
|
(77)
|
(98)
|
||
|
- Dividends received
|
2
|
4
|
||
|
- Additions to loans granted
|
(4)
|
(23)
|
||
|
- Repayment of loans granted
|
156
|
81
|
||
|
- Proceeds from disposals
|
1
|
10
|
||
|
Cash from/(used in) investing activities
|
(605)
|
689
|
||
|
Financing activities
|
||||
|
Settlement derivatives internal loans
|
1
|
(28)
|
||
|
Capital payments from/to non-controlling interests
|
-
|
3
|
||
|
Loans taken up
|
25
|
14
|
||
|
Repayment of loans
|
(13)
|
(818)
|
||
|
Change in debt to credit institutions
|
9
|
10
|
||
|
Dividend paid
|
(225)
|
(200)
|
||
|
Interest paid
|
(59)
|
(135)
|
||
|
Proceeds from reissued treasury shares
|
97
|
107
|
||
|
Repurchase of shares
|
(236)
|
(297)
|
||
|
Cash (used in)/from financing activities
|
(401)
|
(1,344)
|
||
|
Change in cash and cash equivalents
|
385
|
341
|
||
|
Cash and cash equivalents at 1 January
|
899
|
604
|
||
|
Exchange differences relating to cash held
|
(3)
|
(46)
|
||
|
Cash and cash equivalents at 31 December
|
1,281
|
899
|
||
1 An amount of €9 million included in capital expenditure was funded by customers (2017: €1 million) and €18 million via financial lease (2017: none).