DSM Integrated Annual Report 2021

Materials financial results 2021

Materials delivered a strong performance, with a recovery in Protective Materials and a high demand for Engineering Materials due to supply disruptions and industry-wide raw materials shortages. DSM Engineering Materials delivered an excellent operational performance under these very difficult supply chain conditions. Whereas competitors were frequently confronted with force majeure situations, our unique security of supply enabled us to provide supplies to their customers as well as our own.

Volumes were up 6% versus pre-COVID-19 2019 while markets continued to struggle with semiconductor shortages and supply chain disruptions throughout 2021. Materials experienced good pricing strength, making it possible to pass on increased costs to customers.

Materials realized very strong 60% Adjusted EBITDA growth, driven by strong volume growth. Adjusted EBITDA margins recovered from 17.9% in 2020 to 22.5% in 2021 due to strong operational leverage.

x € million

 

2021

 

2020

 

 

 

 

 

Net sales from continuing operations:

 

 

 

 

DSM Engineering Materials

 

1,600

 

1,217

DSM Protective Materials

 

335

 

301

Total

 

1,935

 

1,518

 

 

 

 

 

Organic sales growth (in %, continuing operations)

 

28

 

(12)

Adjusted EBITDA from continuing operations

 

435

 

272

Adjusted operating profit from continuing operations

 

331

 

168

Capital expenditure

 

65

 

63

Capital employed at 31 December

 

1,005

 

953

ROCE (in %, continuing operations)

 

34.1

 

16.4

Adjusted EBITDA margin (in %)

 

22.5

 

17.9

R&D expenditure

 

79

 

73

Workforce at 31 December (headcount)

 

2,885

 

2,857

Net sales bridge 2021

X € million

Net sales bridge materials (waterfall chart)
Earnings before interest, tax, depreciation and amortization (EBITDA)
EBITDA is the sum of operating profit plus depreciation and amortization. Adjusted EBITDA is the EBITDA adjusted for material items of profit or loss coming from acquisitions/divestments, restructuring and other circumstances that management deem it necessary to adjust in order to provide clear reporting on the development of the business.