4 Segment information

Following the Health, Nutrition & Bioscience (HNB) structure becoming effective as of 1 January 2022, DSM’s reportable operating segments were Animal Nutrition & Health (ANH), Health, Nutrition & Care (HNC) and Food & Beverage (F&B) in 2022. These operating segments mainly comprise the former operating segments Nutrition and Innovation. The Materials business also continued to be a reportable operating segment throughout part of 2022; however, following the announced sale of this business, it was reclassified to ‘discontinued operations’ in the first half of 2022.

DSM has segmented its operations by business activity from which revenues are earned and expenses incurred. These operating results are regularly reviewed by the entity’s Chief Operating Decision Maker (CODM) to make decisions about resources to be allocated to the operating segment and assess its performance. DSM uses Adjusted EBITDA as the main indicator to evaluate the consolidated performance as well as the performance per operating segment. Discrete financial information is available for each identified operating segment.

The accounting policies of the operating segments are the same as those described in the Summary of significant accounting policies. Transactions between segments are generally executed at market-based prices. Interest income, interest expense, and income tax expense or income are not allocated to segments as these amounts are not included in the measure of segment profit or loss reviewed by the CODM, or otherwise regularly provided to the CODM.

Our operating segment Animal Nutrition & Health (ANH) drives the development of sustainable animal farming through its essential products, performance solutions, and precision services serving the poultry, swine, ruminants and aquaculture market segments around the globe.

Our operating segment Health, Nutrition & Care (HNC) provides health, nutrition and care solutions for markets such as early life nutrition, dietary supplements, pharma, medical and personal care.

Our operating segment Food & Beverage (F&B) supports healthy diets through nutritious, delicious and sustainable solutions for several market segments including bakery, beverages & brewing, dairy, savory, plant-based alternative proteins and pet food.

Any consolidated activities outside the three reportable operating segments above are reported as the reportable segment ‘Corporate Activities’. These consist of operating and service activities that are considered unallocated activities.

Following the change in the composition of DSM’s reportable segments in 2022 due to the HNB structure becoming effective, for each individual line item of disclosure, DSM applied the guidance provided in IFRS8.29-30 in assessing whether to restate the comparative segment information based on the information available. The 2021 segmentation comparatives that have been restated relate to the previously reported operating segment Innovation Center in 2021. This was restated for the purposes of comparison by redistributing the amounts to HNB and Corporate Activities.

DSM does not have a single external customer that represents 10% or more of total sales.

Business segments

The following table represents the financial performance of the business segments based on the operating segments that existed in 2021, and as disclosed in the Integrated Annual Report 2021.

In the below table, the amounts that were included in the previously reported operating segment Innovation Center have been redistributed to HNB and Corporate Activities for the purposes of comparison.