DSM Integrated Annual Report 2022

Corporate Activities

Any consolidated activities within continuing operations that are outside the three Business Groups are reported as Corporate Activities. These comprise operating and service activities, as well as a number of costs that cannot be allocated directly to the Business Groups. 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



DSM Insurances

We retain a limited part of our material damage, business interruption, (product) liability and other risks via our captive insurance company. In 2022, the total retained damages were €15 million (2021: €21 million).

Corporate research

We centrally invest in a focused number of clearly defined disruptive technology platforms, managed by our Senior Science Fellows, through which we aim to create greater differentiation over the long-term. These underpin early-stage innovation projects that are co-funded with the relevant business, following the principles of co-leadership, milestone-based funding, and assumption-based working, in order to provide market-ready scientific breakthroughs in the future.

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. For detailed information, see Note 27 of the Consolidated financial statements.

Long-Term Incentive