DSM Integrated Annual Report 2020

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 to third parties from its service units, 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










Net sales from continuing operations





Adjusted EBITDA





Adjusted operating profit





Capital expenditure





R&D operating expenditure





Workforce at 31 December (headcount)






The 2019 figure has been adjusted for comparative purposes

DSM Insurances

We retain a limited part of our material damage and business interruption and (product) liability risks via our captive insurance company. In 2020, the total retained damages were €1 million.

Corporate Research

The function of the Corporate Research Program (CRP) is to develop key Science & Technology competences. Falling under the responsibility of the Chief Technology Officer, the CRP typically funds competence development programs with a longer time horizon than those run by the business groups. It also focuses on competences that have a broader relevance for the company. The CRP additionally 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. This links their compensation to the long-term interests of our company’s stakeholders. It also provides a vehicle for the attraction and retention of suitable employees. As shares / share units have become more prevalent in the market, we replaced stock options with shares / share units in 2017. This resulted in better alignment with the LTI vehicle already in place for the Managing Board and the Executive Committee. The use of shares / share units also targets yet closer alignment with the interests of our stakeholders. As a consequence of this switch, we have reduced our hedge obligations. For detailed information, see Note 27 Share-based compensation.

Corporate Research Program
Long-Term Incentive