DSM Integrated Annual Report 2022

Delivering performance-driven profitable growth

Generating profitable growth enables us to have a greater positive impact on the world and to deliver value for all stakeholders. The key driver of our growth, beyond the underlying trends of the areas in which we operate, is the continued expansion of our offering to customers. By harnessing our innovation expertise and emerging bioscience and digital technology, and complemented through acquisition, we develop new business models and solutions that increase our customer intimacy and improve their and our own productivity and efficiency.

In this way we aim to deliver ambitious mid-term profit targets:

Our cash allocation policy has a clear order of priority:

  • Disciplined capital expenditure for organic growth: approximately 6.5% of annual sales
  • A stable, preferably rising dividend
  • Disciplined M&A
  • In the absence of value-creating M&A, capital to be returned to shareholders

We are committed to maintaining a strong investment-grade credit rating. DSM’s policy is to have a stable, preferably rising, dividend, targeting an average payout of 40–50% of adjusted earnings.

Our strategy helps us make the right capital allocation choices including the selection of acquisition targets and the development of our Health, Nutrition & Bioscience portfolio, for the benefit of all stakeholders.

Biosciences are any of the sciences that deal with living organisms.
Capital expenditure
This includes all investments in intangible assets and property, plant and equipment.
Earnings Before Interest, Taxes, Depreciation and Amortization
Mergers & Acquisitions
Organic sales growth
Organic sales growth is the total impact of volume and price/mix. Impact of acquisitions and divestments as well as currency impact are excluded.