In 2015, we communicated our three-year strategy called Strategy 2018: Driving Profitable Growth, which has a strong focus on capturing the full potential of our new business portfolio after the extensive transformation that occurred in the period 2010–2015 and translating this into strong financial results.
Strategy 2018 had two headline financial targets: high single-digit percentage annual Adjusted EBITDA growth and high double-digit basis point annual ROCE growth.
We have become a growth company with ambitious sustainability efforts across the three dimensions of People, Planet and Profit.
Philip Eykerman, DSM Executive Committee
The next step for DSM: a purpose-led company
For more than a decade, we have distinguished ourselves by embracing sustainability and providing value for all our stakeholders across the three dimensions of People, Planet and Profit. Now we are taking a decisive next step as a purpose-led company, contributing to a brighter world for all with our science-based solutions.
We cannot be successful, nor can we call ourselves successful, in a society that fails.
Feike Sijbesma, CEO/Chairman Managing Board
With Strategy 2021: Growth & Value - Purpose led, Performance driven, we will evolve further toward being a purpose-led, science-based company operating in the fields of Nutrition, Health and Sustainable Living. Our strong growth platform, centered on developing innovative solutions addressing Nutrition & Health, Climate & Energy and Resources & Circularity, together with increased customer-centricity and our large innovation projects, will drive above-market growth. At the same time, we will remain focused on cost control and operational excellence, allowing us to accelerate profit growth and cash generation. Organic growth will be complemented by acquisitions, predominantly in Nutrition.
How we create value
Our strategy is aimed at driving profitable growth through science-based, sustainable solutions based on the defining megatrends of our time. By using our unique competences in Nutrition, Health and Sustainable Living, we are fostering economic prosperity, environmental progress and social advances to create value for all stakeholders simultaneously.
- Training & development
- Stakeholder engagement & Public Private Partnerships
- Philanthropy & sponsoring
- Raw materials (including renewable and recycled materials)
- Energy (including renewable sources)
- Shareholder equity
- 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 the transition to a more circular economy
- Safer ingredients & materials
- Financial performance (Adjusted EBITDA & ROCE growth)
- 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 our company and in its value chain
- More sustainable use of resources, for our company and in our 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 we operate
We employ skilled and talented people from diverse backgrounds. We strive 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. We reward employees with competitive benefit packages.
Societal & relationship capital
We engage with various stakeholders to ensure close alignment between our aims and societal needs. We generate value for stakeholders outside our direct value chains of employees, suppliers, customers and end-users; these include employees’ families, governments, local communities and civil society.
We recognize that the world is an interconnected system of resources. For us, this represents a responsibility and a business opportunity. We aim to improve the environmental impact of our supply chain, operations and products and services, while developing innovative solutions that deliver sustainability benefits to customers and beyond.
Providers of capital – shareholders and bondholders, banks and the financial markets – supply funds that we use in our business to create value, driving growth and delivering sustainable returns.
We manufacture and distribute high- quality products and services safely, efficiently and responsibly and strive to develop valuable, collaborative and long-term relationships with customers and suppliers. We pursue open innovation, connecting and collaborating with partners and investing in start-ups.
We have unique competences in life sciences and materials sciences and connect these to deliver innovative solutions that nourish, protect and improve performance.