2019Statements

2 Alternative performance measures

In presenting and discussing DSM's financial position, operating results and net results, management uses certain Alternative performance measures not defined by IFRS. These Alternative performance measures (APMs) should not be viewed in isolation as alternatives to the equivalent IFRS measures and should be used as supplementary information in conjunction with the most directly comparable IFRS measures. Alternative performance measures do not have standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other companies.

To provide clear reporting on the developments of the business, APM adjustments are made that impact the EBIT(DA), net profit, ROCE and the EPS. A reconciliation of these Alternative performance measures to the most directly comparable IFRS measures can be found in the table Alternative performance measures.

The APM adjustments to net profit, as included in the APMs, can be specified as follows:

2019

The APM adjustments in 2019 are listed below:

• Acquisition and divestment costs of €13 million relate mainly to the acquisition of Yimante, Andre Pectin and Royal CSK

• Restructuring costs of €68 million relate to project costs of the restructuring projects together with the redundancy schemes associated with the dismissal of employees and costs of termination of contracts

• The other APM adjustment of €17 million relates to the provision for soil cleaning within Corporate Activities

• Impairments of property, plant and equipment (PPE) and intangible assets of €23 million relate mainly to a development project of DSM Nutritional Products and the impairment of an investment project within DSM Food Specialties

• APM adjustments to the result from associates and joint ventures of €28 million mainly relate to the step-up to the fair value of the associate Andre Pectin prior to the acquisition

2018

The APM adjustments in 2018 are listed below:

• Restructuring costs of €68 million relate to project costs of the restructuring projects together with the redundancy schemes associated with the dismissal of employees and costs of termination of contracts

• The other consolidation change relates to the deconsolidation of Yantai Andre Pectin, which led to an accounting profit of €11 million

• The other APM adjustments of €11 million relate to a changed and remeasured earn-out arrangement with Amyris Brasil

• Impairments of property, plant and equipment (PPE) and intangible assets of €32 million relate mainly to an R&D building of DSM Nutritional Products in Switzerland and the impairment of a development project within DSM Food Specialties

• APM adjustments to the result from associates and joint ventures mainly relate to the gain on the sale of the 50% share in DSM Sinochem Pharmaceuticals (DSP) of €109 million and the gain on the sale of the shares in Essential Medical of €13 million