Factbook 2017 PDF

DSM Factbook 2017
ROYAL DSM
HEALTH NUTRITION MATERIALS
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Page 1
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Page 2
1 DSM at a glance/Strategy 2018
2 Business overview
3 Financial data
4 Share-related information
ROYAL DSM
DSM at a glance | People, planet, profit in 2016
Watch clip:
People Planet Profit1
1. Continuing operations unless stated otherwise

2. See page 142 of the Integrated Annual Report 2016 for reconciliation
Page 4
DSM at a glance | 2016 key financial data
Watch clip:
Sales Adj. EBITDA & Adj. EBITDA margin (%) Adj. EBIT & Adj. EBIT margin (%)
7,920
167 71 1 105 1,262 24
141 791
2,513 435 311
5,169 931 645
18.0 17.3 15.9 12.5 12.4 10.0
Nutrition Materials Innovation Corp. Group Nutrition Materials Innovation Corp. Group Nutrition Materials Innovation Corp. Group
Center Act. Center Act. Center Act.
Capital Employed1 and ROCE (%) Capital Expenditure (accounting) R&D Expenditure2
7,889 485 426
576 31 16 22
32
1,807 75
106
5,537 331
124
205
12.0 17.6 10.4
Nutrition Materials Innovation Corp. Group Nutrition Materials Innovation Corp. Group Nutrition Materials Innovation Corp. Group
Center Act. Center Act. Center Act.
1. At 31 December
2. Income statement expense and capitalized costs (including associated IP expenditure)
Page 5
DSM history | Successful transformation building on an impressive history
Extensive experience in chemical

synthesis and biotechnology
Est.
1934
Hoffman La Roche Vitamins
Chemical synthesis & biotechnology
1902 1950 - 1980 1989 1998 2002-2003 2005-2010 2011-2015
Est.
1902
DSM
▪ Formation of ▪ Continuous shift ▪ DSM listed ▪ Acquisition ▪ Sale of ▪ Focus on ▪ Acquisition of Chemistry, energy, polymer technology
coal mining to (petro) on the AEX of Gist- Petrochemicals Life Martek (2011),
company chemical and stock Brocades business Sciences ONC, Kensey
‘De fertilizer exchange which was ▪ Acquisition of and Nash, Fortitech
Nederlandse products incl. integrated Roche’s Materials (2012), Tortuga
Staatsmijnen’ industrial into the Vitamins & Fine Sciences (2013) and
(Dutch State chemicals and DSM Life Chemicals and Aland (2015)
Mines) raw materials Science division, divestment ▪ Establishment Est.
for synthetic/ cluster subsequently of non- of partnerships 1869
polyethylene renamed DSM core DSP (2011), Gist-Brocades
fibers and yarns Nutritional businesses Patheon (2014) Biotechnology
Products Melamine, and
Agro, ChemicaInvest
Elastomers (2015)
Page 6
DSM history | Business portfolio streamlined and simplified,
creating good platform for growth
Significant portfolio transformation (in % of DSM sales)
Innovation 100%
▪ Built a broad, deep and global
▪ Petrochemicals ▪ Petrochemicals ▪ Base Chemicals
▪ Energy ▪ Energy
& Materials Nutrition business
▪ Energy
▪ Engineering ▪ Engineering Materials ▪ Upgraded Materials businesses
▪ Plastic ▪ Plastic
products products ▪ Became a more global, innovative
▪ Curver ▪ Base Chemicals
and sustainable company
& Materials
▪ Base Chemicals ▪ Extensive experience in chemical
& Materials ▪ Others
synthesis and biotechnology binds
▪ Others Nutrition and Materials
Nutrition
▪ Created 3 new growth platforms:
– Innovative materials for
medical devices
– Clean energy (from crop
1995 2000 2005 2010 2015 – residues) and bio-chemicals for
Other Innovation Center
biomass conversion
– Yield-boosting solutions for
Polymer Intermediates & Composite Resins Materials
solar energy
Pharma Nutrition
Page 7
DSM today | DSM expects to extract significant value from further exiting
its legacy partnerships in the coming years
DSM Sinochem Pharmaceuticals (50%) Patheon (34%)1 ChemicaInvest (35%)
Pharma - Antibiotics Pharma - Contract Manufacturing Bulk Chemicals
▪ JV with Sinochem created in 2011 ▪ Created in 2014, when DSM ▪ Created in 2015 when CVC Capital
when Sinochem took a 50% interest combined DSM Pharmaceutical Partners took a 65% stake in the (bulk
in DSM Anti-Infectives Products with JLL Partners’ Patheon chemical) activities of DSM in
caprolactam, acrylonitrile and
▪ Global leader in generic anti- ▪ Produces a unique breadth of
composite resins
infective offerings from finished dosage (drug
products) to active substances (APIs)
In € million at 100% 2016 In € million at 100% 20162 In € million at 100% 2016
Sales 431 Sales 1,786 Sales 1,802
Adjusted EBITDA% 14% Adjusted EBITDA% 20% Adjusted EBITDA% 6%
1. On 15 May 2017, DSM informed markets that it had unanimously approved the acquisition of Patheon by Thermo Fisher Scientific. Thermo Fisher will
commence a tender offer to acquire all shares for $35 per share. The transaction is expected to be completed by the end of 2017
2. Book year 1 November until 31 October. Based on continuing operations
Page 8
DSM today | A broad, deep and global Nutrition business and a focused,
high-quality, specialty Materials portfolio
Sales Adj. EBITDA Adj. EBITDA% ROCE
€7,920 €1,262 15.9% 10.4%
Nutrition Materials
Animal Human DSM Food Pers. Care DSM Engineering DSM Dyneema DSM Resins &
Nutrition Nutrition Specialties & Aroma Ingr. Plastics Functional Materials
▪ Nutrition is active in nutritional ingredients for ▪ Advanced materials for high-performance
animal feed and food, as well as in food specialty components for the electrical and electronics,
ingredients and performance ingredients for automotive, (flexible food) packaging, consumer
personal care, serving the global feed, food & goods, life protection, transportation and telecom
beverage, pharmaceutical, infant nutrition, industries
dietary supplements and personal care industries
Sales EBITDA EBITDA% Sales EBITDA EBITDA%

€5,169 €931 18.0% €2,513 €435 17.3%
Page 9
DSM today | Emerging Business Areas provide long-term growth platforms
based on the company’s core competences
DSM Biomedical DSM Bio-based Products & Services DSM Advanced Solar
Enabling innovative medical devices Enzymes/yeast for biomass conversion Efficiency-increasing products for solar
▪ DSM Biomedical supplies innovative ▪ DSM Bio-based Products & Services is ▪ DSM Advanced Solar develops and
biomedical materials that enable at the forefront of building a more provides solutions to increase the
medical device manufacturers to sustainable, bio-based economy with yield of solar panels – Same sun.
make less invasive devices. These solutions for clean fuel from More power™.
can speed up recovery, shorten agricultural residue and for
hospital stays and minimize renewable chemical building blocks
reoperations, lowering health costs such as bio-based succinic acid
and helping people to lead longer,
healthier and more active lives
Page 10
DSM today | A well-balanced and diversified portfolio
Net sales by origin (%) Net sales by end-use market (%)
1% 1% The Netherlands China 8% Nutrition and Health

11% 1% 25% Rest of Western Europe India 6%
Metal/building & construction
3%
Eastern Europe Japan 5% Automotive/transport
7% 1% 67%
North America Rest of Asia 7% Textiles
Latin America Rest of the World ▪ Animal Nutrition (31%) Electrical & electronics
6% ▪ Human Nutrition (24%)
18% Packaging
▪ Food Specialties (7%)
31% ▪ Other (1%) Other
2%
▪ PC & AI (4%)1
Net sales by destination (%) Net sales by business segment (%)

3% 4% The Netherlands China 2% Nutrition
10% 1%
Rest of Western Europe India Materials
2% 3% 25% Eastern Europe Japan Innovation Center
32%
12% North America Rest of Asia Corporate Activities
Latin America Rest of the World
6% 65%
12%
23%
1. Personal Care & Aroma Ingredients
Page 11
DSM today | Global production while offering a local approach
Watch clip:
Global presence1 Employees per region1

Total employees | 20,786 The Netherlands
Europe Rest of Western Europe
9,180 2%
4%
1% 19% Eastern Europe
North America Asia 1%
North America
3,187 6,090 22% Latin America
China
23% India
10% Japan
2% Rest of Asia
15%
Rest of World
Africa:
Employees per business segment1
73 employees
2,447
Latin America RoW 619 Nutrition
2,069 260 Materials
Innovation Center
4,460
Corporate Activities
13,260
1. As per 31 December 2016
Page 12
DSM today | Sustainability agenda is core to DSM’s business strategy1
Key sustainability focus areas

▪ Nutrition
▪ Climate change and renewable energy
▪ Circular and bio-based economy
Sustainability as business growth driver

Brighter Living Solutions: ECO+ and People+ 2016
Eco+ People+ ▪ Profitable solutions better for people and planet
▪ Aspiration: 65% of DSM products by 2020 63%
Securing sustainable operations

Operational Aspirations Long-term goals 2016
▪ Leading in reporting benchmarks Gold class DJSI Gold class
GHG and Energy
Health & Safety ▪ GHG efficiency improvements 40-45% (2008-2025) 23%
Efficiency ▪ Energy efficiency improvements >10% (2016-2025) 2%
Engagement
Renewable ▪ Purchased electricity from renewables 50% by 2025 8%
Diversity
energy ▪ Employee engagement favorable score 75% by 2020 71%
▪ Safety: Frequency recordable index 0.25 by 2020 0.33
1. Please see DSM’s Integrated Annual Report 2016 for definitions and additional information
Page 13
DSM today | DSM and the Sustainable Development Goals
▪ At DSM, we believe that companies have a Main intersections between the SDGs and DSM1
crucial role to play in creating the impact SDG 2 | End hunger, achieve food security and improved nutrition and promote sustainable
needed at scale to achieve the 17 Global agriculture. DSM works to improve nutrition via initiatives such as the Nutrition Improvement
Program and Africa Improved Foods, providing fortified food solutions and micronutrient products,
Goals for Sustainable Development as well as through partnerships such as with WFP. We continue to support the independent
nutrition think-tank, Sight and Life
▪ We believe that our expertise in health, SDG 3 | Ensure healthy lives and promote well-being for all at all ages. DSM’s health, nutrition,
nutrition and materials position DSM well biomedical and high-performance materials portfolios are geared to maintaining, protecting or
regenerating health in all age groups (for example, by reducing salt and sugar levels in processed
to actively contribute to the SDGs foods, or by reducing emissions associated with chemical manufacturing processes). Our First 1,000
Days Program supports mother and child health. We employ the DSM Life Saving Rules to protect our
employees from harm and the DSM Vitality Program to promote awareness of good health and
▪ While all the Goals are important, there healthy living options among our employees
are five SDGs on which we believe our SDG 7 | Ensure access to affordable, reliable, sustainable and modern energy for all
company and its businesses can be most SDG 13 | Take urgent action to combat climate change and its impacts. In partnership with RE100,
we are increasing the use of renewables in our energy mix, reducing our carbon footprint. DSM
influential enables solar and bio-based energy solutions and supports the move toward a low-carbon economy
through solutions such as POET-DSM advanced biofuels and high-performance materials for solar
▪ DSM collaborates with multiple partners panels. Our Bright Minds Challenge is identifying innovative solutions and new materials that will
fast-track the movement toward 100% renewable energy. We advocate responsible action on
and stakeholders, in line with SDG 17 climate change in combination with our stakeholders
(Partnering for the Goals), including UN SDG 12 | Ensure sustainable consumption and production patterns. DSM contributes to a bio-based,
agencies, governments, academia, NGOs circular and low-carbon economy with products such as Akulon® oil pans and Arnite® car lighting.
DSM-Niaga enables the manufacture of carpets that can be recycled, again and again. Food waste is
and peers (see also next page) reduced through DSM food solutions such as Pack-Age®. Bio-based chemicals such as bio-succinic
acid replace fossil-fuel based alternatives in applications from packaging to footwear. Through our
Brighter Living Solutions program we consider the impact of our products throughout the value chain
1. Please see DSM’s Integrated Annual Report 2016, pages 12 and 13 for additional details
Page 14
DSM today | Rewarding partnerships to fight malnutrition around the
world
▪ As a leading micronutrient provider DSM develops innovative DSM’s main cross-sector nutrition partnerships1
solutions for improved nutrition. In order for these solutions to
have the broadest reach, and in line with SDG 17, we work with
partner organizations that have direct access to beneficiaries
▪ DSM’s nutrition partnerships focus on the following objectives:

– Wider base of scientific evidence and endorsement;
– Increased market for nutrition products;
– Improved employee engagement
▪ DSM’s partners range from UN agencies, governments, academia

and NGOs to industry peers
▪ We commit support through financial and non-financial means

including time, technical expertise, products and volunteers
1. For a more extensive list and description of DSM’s other nutrition platforms and partnerships, please see our website
Page 15
DSM today | External recognition1
▪ In August 2016, Fortune Magazine revealed that DSM was included in its second annual Change the World List which highlights the 50 leading
companies that are innovating to solve the world’s biggest challenges through core profit-making strategy and operations
▪ On 8 September, DSM was named the worldwide leader in the Materials industry group in the Dow Jones Sustainability World Index. DSM has
consistently been recognized for integrating sustainability into its business, having been named among the global leaders in each of the last 13 years
and holding the number one position in the sector seven times
▪ On 30 September, DSM’s Science Can Change the World campaign won in the Best Communication category at the Ethical Corporation Responsible
Business Awards 2016. DSM was also ‘highly commended’ in the Best Sustainable Company category. The Awards recognize genuine, truly innovative
and meaningful approaches to making responsible business a reality
▪ DSM has been identified as a global leader for its actions and strategies in response to climate change and has been awarded a position on the Climate
A List by CDP, the international not-for-profit that drives sustainable economies. 193 “A Listers” appear on the list, which has been produced at the
request of 827 investors with assets of US$100 trillion
▪ On 25 October 2016, DSM was reconfirmed as a constituent of the Ethibel Sustainability Index (ESI) Excellence Europe. The ESI Excellence Europe
contains shares of 200 European companies that are included in the Russell Global Index that display the best performance in terms of corporate
social responsibility (CSR)
▪ On 4 November 2016, Reverdia, the joint venture between DSM and Roquette Frères that produces Biosuccinium™ (succinic acid), the first non-fossil
feedstock derived chemical building block, topped the Biofuels Digest 40 Hottest Emerging Companies in the Advanced Bioeconomy 2016-17
▪ Each year Corporate Knights publishes their Global 100 Index of the most sustainable corporations in the world. In the 2017 Index published on 16
January, DSM was the highest ranked materials company for a second successive year and rose from 23rd place overall in 2016 to 9th in 2017. Those
featured are considered leaders in transparency, in resource productivity and on a range of other social and governance indicators
1. For more information please see https://www.dsm.com/corporate/about/our-company/external-recognition.html
Page 16
DSM today | DSM management
DSM Managing Board
Feike Sijbesma Geraldine Matchett Dimitri de Vreeze

CEO/Chairman of the Managing Board Chief Financial Officer Member of the Managing Board
Nationality: Dutch Nationality: British, French, Swiss Nationality: Dutch
▪ CEO since 1 May 2007, member of the Managing ▪ CFO since December 2014, member of the ▪ Member of the Managing Board since
Board since 2000 Managing Board since August 2014 September 2013
▪ With DSM since 1998 when DSM acquired Gist- ▪ Prior to joining DSM, Global CFO of SGS Group, ▪ With DSM since 1990
Brocades. Joined Gist-Brocades in 1987 a publicly quoted company on the SIX Swiss
stock exchange
DSM Supervisory Board DSM Executive Committee
▪ Rob Routs (Chairman) ▪ Victoria Haynes ▪ Feike Sijbesma (CEO/Chairman) ▪ Chris Goppelsroeder (Nutrition)
▪ Tom de Swaan ▪ Eileen Kennedy ▪ Geraldine Matchett (CFO) ▪ Philip Eykerman (Strategy and M&A)
▪ Pauline van der Meer Mohr ▪ Pradeep Pant ▪ Dimitri de Vreeze (Materials) ▪ Peter Vrijsen (People & Organization)
▪ John Ramsay ▪ Frits van Paasschen ▪ Rob van Leen (R&D and Innovation)
Page 17
Strategy 2018 | Summary and 2016 achievements
Two headline High single-digit percentage High double-digit basis point

financial targets annual Adjusted EBITDA growth annual ROCE growth
2016 achievements: 2016 achievements:

▪ 17% ✓ ▪ 280 bps ✓
Clear actions identified to Businesses aim to outpace €250-300m cost reduction & Consistent improvements in
achieve targets market growth efficiency improvements capital efficiency
2016 achievements: 2016 achievements: 2016 achievements:

Nutrition ▪ On track: ~€110m
✓ ▪ Cash from operating
✓
▪ 5% organic growth ✓ cumulative savings by activities up 27%
Materials
year-end 2016 ▪ Capex at €475m,
<€500-550m guidance
✓
▪ 4% volume growth ✓ ▪ Total Working Capital
at 18.4%, better than
✓
aspiration level
Additional items underpinning Stepping up sustainability Global organizational and Extract value from Pharma and
strategy aspirations operational adjustments Bulk Chemicals JVs
2016 achievements: 2016 achievements: 2016 achievements:

▪ On track ✓ ▪ On track ✓ ▪ 1st step taken with sale ✓
of 4.8m shares in Patheon
Page 18
Strategy 2018 | Driving profitable growth through science-based,
sustainable solutions
Climate & IMPROVING
2018 TARGETS
Energy FINANCIAL RESULTS
Global shifts & Health &
Digitization Wellness
Growth
annual Adj. EBITDA growth:
high single-digit percentage
---
Cost & Productivity
annual ROCE growth:
Capital high double-digit bps
HEALTH . NUTRITION . MATERIALS
Efficiency
BRIGHT SCIENCES Result-driven organization
& culture
▪ Following a period of important transformation, DSM is now focusing on ensuring that the potential of the current
business portfolio translates into improved financial results during the 2016-2018 period
▪ Two headline financial targets
– High single-digit percentage annual Adjusted EBITDA growth & high double-digit basis point annual ROCE growth
Page 19
Strategy 2018 | Well-identified initiatives to drive Strategy 2018 targets
~€130-150m
~€100-125m1
Nutrition
program Inflation Sales above
Support
functions market growth
& services
program
2015 2018
EBITDA EBITDA
▪ DSM is confident it has the right business strategies in place to meet the needs of its customers and succeed in its
markets, providing innovative and sustainable solutions
▪ Aims to accelerate growth and outpace market growth in all its key segments
▪ In addition to its growth initiatives, self-help programs will further help delivery of the Strategy 2018 targets
1. Savings as of 2015
Page 20
Strategy 2018 | Nutrition growth strategy
Nutrition strategy 2018 Aspirations underlying Group targets

▪ Profitable growth via: ▪ Annual EBITDA growth:
high single-digit percentage
1▪ Expanding the core
▪ Annual ROCE growth:
2▪ New products and solutions high double-digit bps
2
3▪ Growing in underpenetrated
▪ EBITDA margins: 18-20% over the period
categories/regions
4▪ Accessing new segments/new

▪ Above-market sales growth (at stable
business models prices)
1
▪ Reducing costs and increasing 3 4
productivity
▪ Driving cash generation
▪ Increasing capital efficiency Excellence in execution
Page 21
Strategy 2018 | Growth projects in Nutrition are delivering
Watch clip:
Nutrition Strategy 2018 and 2016 milestones
▪1 Expand the core

2
– New vitamin B6 plant and
expansion of the gellan-gum
and pectin facilities all in
China;
1
3 4
▪2 Add new products and solutions
Excellence in execution
– Product offering broadened
e.g. eubiotics for antibiotic-
free poultry;
2016
▪ Organic growth: 5% – Good progress in the ‘Green
Ocean’ and ‘Clean Cow’
▪ EBITDA growth: 13.3%
projects;
▪ ROCE up 170 bps
Page 22
Strategy 2018 | Growth projects in Nutrition are delivering (cont’d)
Nutrition Strategy 2018 and 2016 milestones
▪3 Expand in new segments/regions

– Launch of MEG-3® Ultra allowing for
varieties of (high-concentrate) DHA
and EPA;
2
– Successful expansion of fast-growing

i-health consumer line of products
1 outside of the US;
3 4
▪4 New business models

Excellence in execution
– Business to farmer (B2F) network

expanded with new brand
(YiWeiZhuang) and new mobile order
platform
Page 23
Strategy 2018 | Materials growth strategy
High Accelerated Materials Strategy 2018

Functional
growth Materials ▪ Focus on the higher-growth specialty segments,
High-Performance while maximizing returns in PA6 Polymers and
Growth PA6 Plastics Powder Coating Resins
Solar1
Compounds
Biomedical1 Aspirations 2018 underpinning Group targets
Maximize
Market growth
Specialty Coating Dyneema® ▪ Annual EBITDA growth:

PA6
returns Resins Fiber Solutions high single-digit
Polymers
▪ Annual ROCE growth:
Powder high double-digit bps
Coating Resins
Dyneema® Life ▪ EBITDA margins:
Protection >15% over the period
▪ Above-market sales growth

(at stable prices)
- DSM Engineering Plastics - DSM Resins & Functional Materials
- DSM Dyneema - Emerging Business Areas
Low DSM’s capability to extract value High

1. Whilst not part of the cluster, the Emerging Business Areas of DSM Biomedical and DSM Advanced Solar are also related to Materials and represent promising
growth platforms for the longer term
Page 24
Strategy 2018 | Materials is delivering good growth in specialties
Materials Strategy 2018 and 2016 milestones
High Accelerated
growth
Functional
Materials
▪ For DSM’s specialty materials, DSM is using new
Growth PA6
High-Performance
Plastics
technologies and (sustainable) customer solutions
Solar
Compounds
Biomedical
to accelerate growth:
Maximize
Market growth
Specialty Coating Dyneema®

PA6
returns
Polymers
Resins Fiber Solutions
– DSM Engineering Plastics
Powder
Coating Resins
Dyneema® Life • Used in new ultra-thin USB Type-C
connectors
Protection
- DSM Engineering Plastics - DSM Resins & Functional M aterials

ForTii®
PA4T
• Launch of next-generation high- PA46
PPS
temperature polyamides
2016
PA410
PA6, PA66
▪ Volume growth: 4%
• New high-performance thermoplastic
▪ EBITDA growth: 13.3%
copolyester
▪ ROCE up 320 bps
Page 25
Strategy 2018 | Materials is delivering good growth in specialties (cont’d)
Materials Strategy 2018 and 2016 milestones
– DSM Dyneema
• Increased global demand for Dyneema®
High Accelerated
Functional
Force Multiplier Technology for personal
growth Materials
protection
High-Performance
Growth PA6 Plastics Solar • Launch of a woven laminated anti-stab
Compounds
Biomedical solution
Maximize • Launch of Dyneema® Carbon hybrid
Market growth

PA6
returns Resins Fiber Solutions
Polymers
composite fabrics that improve impact
Powder
Coating Resins
resistance and vibrational dampening of
Dyneema® Life
Protection
traditional carbon fiber composites without
compromising on weight and performance
- DSM Engineering Plastics - DSM Resins & Functional M aterials – DSM Resins & Functional Materials

• Good progress with sustainable waterborne
coatings for marine containers in China;
• High acceptance of powder and waterborne
coatings in Europe
Page 26
Key business/innovation projects driving earnings growth beyond 2018
▪ DSM has set itself strategic targets for the period to 2018. At the same time, we are also preparing for further longer-
term growth
▪ Range of key business and innovation projects across the clusters will drive earnings growth beyond 2018 and we will
continue to develop more initiatives in light of market dynamics
Nutrition Materials Emerging Business Areas
▪ Fermentative ▪ ForTii® (HPPO ▪ 3D options (combine

stevia polymer) Somos, Resins, Biomedical
▪ Algae-based omega-3 & Engineering Plastics)
for aquaculture ▪ Niaga® (recycle
carpets)
▪ Clean cow ▪ Solar materials
▪ Decovery® (bio-based
▪ Hydrocolloids
resins)
▪ Eubiotics ▪ Bio-based products
▪ Apparel (Dyneema® and services
▪ i-Health textile apps)
(B2C nutrients)
▪ New bio colorants ▪ Force multiplier technology
▪ New Bio-Medical products
(blue/red) (light personal protection)
Page 27
Strategy 2018 | Driving profitable growth supported by cost reduction
and efficiency improvement programs
Cost savings: total €250-300m by 2018 Timing of cumulative cost savings
~€m Realized Forecast

Nutrition 400
Program
€130-150m 300
DSM-wide (by 2018)
support 200
functions ~110
€125-150m 100
Materials ~25
(by end 2017)
0
2015 2016 2017 2018
▪ DSM is rigorously executing its ambitious cost reduction and efficiency improvement programs across the company
▪ Cost reduction/efficiency improvement programs target overall savings of €250-300m by 2018
▪ The plans are firmly on track by end of 2016
Page 28
Strategy 2018 | FTE reduction on track and one-time costs within budget1
Cumulative FTE reduction2 One-time costs
5,000 Realized Forecast Realized Forecast

~4,400
400
4,000
300
3,000
200
2,000
900-1,100 ~80 ~80
1,000 ~675 100 ~70
0 0
Total FTE in Support 2016 Reduction target 2015 2016 2017
Functions (vs. 2014 base)
(2014 baseline)
▪ FTE reduction in service organization on track to reach target:

– FTE reduction up to and incl. FY2016 is ~675 FTE vs. an ambition of 900-1,100 FTE (end of 2017)
▪ One time restructuring costs in 2016 amounted to ~€80m
1. By end of 2016
2. Vs. 2014 baseline
Page 29
Strategy 2018 | Strong progress made with globally leveraging support
functions, saving DSM-wide support functions & staff costs
Savings: €125-150m1
Progress (%)2 Remarks Achieved by end of 2016 Remaining 2017/ Run Rate EoY
▪ Shared Services Improvement Plan completed, incl. shift of most activities to Global Service Centre in
Support
India
Funct. Finance 65 35
▪ Finance Regions (EMEA, North America, Asia) staffed and operational in Financial, Commercial &
Operations Control
▪ Shared Services operational and payroll outsourced
HR 85 15 ▪ Updated processes and tools for talent development, career review, recruitment, learning & development
▪ IT Operating Model defined and related FTE reductions announced, implementation has started
IT 50 50
▪ Standardization/outsourcing of personal workplaces and other saving initiatives realized
75 25 ▪ Supplier base rationalization, FTE reduction and related savings in external spend progressing well
Ind. Sourcing
85 15 ▪ Global external & internal Communications function fully operational across regions and business groups
Comms
▪ Supplier rationalization in (Marketing-)Communications progressing well
▪ One Shared Services Organization with Global Delivery Centre in India and satellite in China live
Shared Services 30 70
▪ One multi-functional Service Desk and Portal in development
Funct.
▪ Operating Models implemented (FTE reduction of ~40%); good progress in implementing new mandates
Excell.
▪ Regional organizations brought in line with new DSM Operating Model; Finance, HR implementing Functional Operating Models
Regions
1. Vs. 2014 baseline

2. By end of 2016
Page 30
Strategy 2018 | Nutrition-specific improvement program running well
with purchasing savings ahead of plan and cost-reductions on track
Savings: €130-150m1
Cost improvements Work streams closely monitored and on track

Current status as per end of 2016: Actions Financial benefits
Purchasing ▪ Purchasing savings so far

exceeding target, helped by low
Efficiency Purchasing commodity prices
gains
(Yield & Fixed cost ▪ Cost reduction programs are
Energy) reduction being executed. Remaining part
will be captured in the upcoming
period
Throughput ▪ Program on track, planned

Fixed cost gains benefits end of 2016 realized.
reduction Target gains are expected to be
(~100 FTE) secured
Efficiency ▪ Program on track, planned
gains benefits end of 2016 realized.
Throughput gain in sold-out units Target gains are expected to be
secured
1. Vs. 2015
Page 31
Strategy 2018 | Disciplined approach to capital allocation
▪ Capital efficiency is a key driver of cash generation; in 2016 we undertook a number of improvement projects in this
area throughout DSM
– One of these has been to take a more integrated approach to business planning, in particular in our Nutrition cluster
– Holistically addressing processes instead of approaching them as a series of individual steps has resulted in clear
improvements in inventory management, production and distribution efficiencies.
Driving financial performance Reducing working capital1 Strict capital allocation
▪ Cash from operating activities up 27% ▪ Average Total Working Capital better ▪ Cash capex at €475m below
than aspiration level <20% €500-550m per annum guidance
1,018 628
20.7%
18.6% 536
800 475
663
2014 2015 2016 2014 2015 2016 2014 2015 2016

Discontinued operations
1. 2014 figure added for comparison only: based on non-audited, restated estimates adjusting for divestitures, acquisitions and other non-recurring items
Page 32
Strategy 2018 | Organization adjustments to deliver
▪ A new -strengthened- top structure:

Executive Committee aligns finance, business, innovation, strategy
& people, enabling faster strategic alignment & operational
execution
▪ A new operating model:

Business Groups: focus on M&S, Operations, Sourcing, R&D
Support Functions: globally leveraged: Finance, HR, Legal,
Comms, IT, Business Services & Corporate
Departments
▪ A new way of working:

Focus on Accountability (delivering) and Collaboration
(trust/speed)
Examples: reduction internal meetings, reducing demand,
increased speed, feedback loops, clearer expectations and
engagement with more skills, supported by incentives
Page 33
2 Business overview
3 Financial data
ROYAL DSM
Nutrition
ROYAL DSM
Nutrition | A unique, global and broad portfolio in food/feed nutritional
ingredients with increased solutions offering capabilities
Nutrition - Overview Sales by end-market (%)
▪ Global leader in nutrition, with broadest portfolio of Sales | €5,169m
7%
1% Animal Nutrition & Health
specialty nutritional ingredients
10% Human Nutrition & Health
▪ DSM serves the global industries for animal feed, food and Food Specialties
beverages, pharmaceuticals, infant nutrition, dietary 46% Other
supplements and personal care Personal Care & Aroma Ingredients
▪ DSM is uniquely positioned in all steps of the feed and food 35%
value chains: the production of pure active ingredients, their
incorporation into sophisticated forms, and the provision of
tailored premixes and forward solutions Sales by region (%)
Sales | €5,169m
4% Europe
North America
25% 31%
Latin America
Asia
Rest of the World
18%
22%
Page 36
Nutrition | 2016 key financial data (continuing operations)1
Sales and organic sales growth (%) Adj. EBITDA & Adj. EBITDA margin (%) Adj. EBIT & Adj. EBIT margin (%)
4,963 5,169 931 645
850 822 596
4,335
535
2 2 2 6 5 22 22 19.6 16.6 18.0 17 16 13.7 10.8 12.5
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
ROCE (%) Capital employed (at 31 Dec.) Capital expenditure (accounting)
5,309 5,537 330 322 331

5,034
12.5 12.0
10.3
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
1. 2012-13 figures added for comparison only. Figures are based on non-audited, restated estimates adjusting for divestitures, acquisitions and other non-
recurring items
Page 37
Nutrition | Broad portfolio is providing resilience with limited exposure to
single product lines or customers
Portfolio of ingredients (%) Sales split over value chain steps (%)
Fat soluble vitamins (e.g. A,D,E)
Water soluble vitamins (e.g. B,C)
Carotenoids Active ingredients
Marine PUFAs
Microbial PUFAs Forms
Enzymes & cultures
Minerals & dicalcium phosphates
Premixes
Savory / yeast extracts
Nutraceutical ingredients
Aroma intermediates i-Health/B2C
Other blend ingredients
Other
Profit contribution per product line (%) Sales per customer (top 10)
▪ Top-10 represent <50% of Nutrition ▪ Largest customer

profit in 2016 represents less than 3%
of Nutrition sales
▪ Product range includes ~100 product
lines
▪ Largest profit contributor less than
10% of Nutrition profit
▪ Several products have a strong IP
position
Page 38
Nutrition | Product portfolio overview
Value chain positioning

Feed,
Raw Forms/delivery Premix and Food, Retail/end
Materials Active Ingredients
systems nutritional solutions Cosmetics,
Pharma
consumer
▪ Vitamins – Essential ingredients required for growth and well-being ranging from fat-soluble vitamins (A, D, E, K) to water-
soluble vitamins (C, all B vitamins, folic acid and pantothenic acid)
▪ Carotenoids – Essential ingredients that are important in nutrition and reproduction. Providing sufficient carotenoids
increases animal performance across species. Carotenoids also ensure consistent pigmentation of eggs and fish such as
salmon
– Key carotenoids are beta carotene, lutein, canthaxanthin, astaxanthin and zeaxanthin
▪ Nutritional Lipids – Polyunsaturated fatty acids (‘PUFAs’) play a critical role in the development and maintenance of proper
brain function, cardiovascular and eye health, immune and inflammatory responses and the production of hormone-like
molecules. Omega-3 and omega-6 are used in food, dietary supplements and infant nutrition and are manufactured from
algae, fungi as well as fish oil
▪ Enzymes & Cultures for food and feed – Adding enzymes to animal feed improves feed conversion leading to a reduction of
the cost of feed while at the same time improving the ecological impact of animal protein production by reducing the
amount of raw materials needed and by reducing pollutants in the manure. In food & beverage, enzymes and cultures
enhance taste, texture or act as processing aids functioning as a catalyst for biochemical reactions
Page 39
Nutrition | Product portfolio overview (cont’d)

Feed,
Pharma
consumer
▪ (Trace) minerals & Dicalcium Phosphates (DCP) – Minerals that are needed in very small amounts. As minerals they
come from soil and water and cannot be made by living organisms. Most of the trace elements in our diets come
directly from plants or indirectly from animal sources
▪ Savory/yeast extracts – Extracts and process flavors to enhance taste while reducing salt in snacks, ready-meals,
sauces, soups and meat
▪ Natural anti-microbials - Fermentation based anti-microbial solutions, effective to protect foodstuffs and beverages
from microbial spoilage, extending shelf life and improving flavor
▪ Nutraceutical ingredients – Deliver the optimal balance of microflora in the gastrointestinal tract of livestock animals
optimizing nutrient absorption, while in human nutrition, nutraceutical ingredients enable consumers to perform at
their peak, as well as helping cope with future health concerns such as cardiovascular disease and weight
management
▪ Aroma intermediates - Products of the highest purity and quality, from authentic foods packed with taste to aromatic
scents and perfumes
▪ UV-filters – Range of high performing UV-A and UV-B filters for skin and hair applications
▪ Skin Bio-actives – Range of vitamins, synthetic peptides and natural extracts for skin care markets
Page 40
Nutrition | Product portfolio overview (cont’d)

Feed,
Pharma
consumer
▪ A broad range of technologies transform the ▪ Through customized blending of active

active ingredients into a different state of ingredients and/or forms, DSM offers its
presentation, e.g. a fat-soluble vitamin oil clients regional and segment-specific
into a powder form finished products solutions
▪ Allows for maximum differentiation in terms ▪ A broad network of around 60 premix plants
of stability, shelf-life, heat resistance, bio- allows DSM to offer tailor-made, customer-
availability, physical properties driven solutions, i.e. global products & local
solutions
Examples of forms
Spray Beadlet Multi-layer Flavor

dried micro flake
encapsulate
Page 41
Nutrition | Global presence and unparalleled local network
Unique global network1
1. Excl. DSM(-wide) Research & Development locations
Page 42
Animal Nutrition & Health
ROYAL DSM
Animal Nutrition | DSM has the broadest portfolio in the industry
Provide antioxidants
& pigmentation PRODUCTIVITY
Carotenoids Improve digestion
Vitamins Enzymes
HEALTH Premixes
Required for growth Strengthen gut
and well-being Core health
Tortuga
minerals Eubiotics
Page 44
Animal Nutrition | Focused on sustainable animal nutrition
• Reduce use of scarce resources

• Reduce greenhouse gas
emissions from livestock
• Advocate science-based knowledge • Reduce food waste

about balanced diets; the right
amount and quality of proteins are
essential
• Improved end-product quality and
food safety • Care for safe and controlled
production, including animal
• Support small-scale farmers with welfare
training and services
• continuous drive to increase
animal health
• Capture the opportunities of new,
emerging technologies
• Combat antibiotic resistance
• Improved gut health
• Find and develop new sources of
protein and marine omega–3 oils
Page 45
Animal Nutrition | Serving global feed ingredients markets with local
solutions
Overview Global ingredients market for animal feed (%)
▪ Animal Nutrition & Health serves the global feed ingredients (x) = Growth rate 2015-18 (CAGR, %)
DSM active in colored parts with
markets for poultry, swine, aquaculture, ruminants and pets market share of ~30%
with a focus on the nutritional ingredients and additives
segments (€2,399m in sales in 2016) €2bn (0.1%) Other Minerals &
chelates Amino Acids
– These markets are spurred by population growth and rising (4-6%)
(4-6%)
standards of living Eubiotics
4-5%)
▪ The global animal nutrition market is driven by the need to
improve production efficiency in response to the growing global €10bn (~4%) Additives Enzymes Total
demand for animal protein while at the same time reducing the (5-6%) potential
environmental impact of farming market:
– This results in feed with higher nutritional content (i.e. Fat soluble €10bn
vitamins
higher degree of nutritional ingredients) (4-6%)
▪ Increased focus on alternatives to antibiotic growth promoters Water solubleCarotenoids

€9bn (~4%) Premix vitamins (2-3%)
▪ Few global players in feed/premix and animal protein, next to (2-3%)
many mid-size, local and/or regional feed/premix companies
and animal protein producers DSM is active in the ~€10bn
€350bn Compound feed additives and ~€9bn premix
▪ DSM is uniquely positioned, offering a complete portfolio of (~2%)
targeted feed ingredients, while competitors cover only part(s) segments
of the value chain ~370bn (~2%)
Page 46
Animal Nutrition | Value chain
Processors/farmers -
Compound feed - €198bn
Feed ingredients >€1,200bn
(soy, corn, etc.)
~€140bn
Specialty feed
additives
Chinese
>€10bn players
Additives for pasture

Premix
raised animals
Nutrition serv. Various

& consultants consultants
Medical feed
additives
>€10bn
A full chain player, providing active ingredients globally and (tailored) premix solutions at a local level
Page 47
Animal Nutrition | Overview
Sales by region (%) Sales by active ingredients (%)

Europe
Fat-soluble vitamins
North America
Water-soluble vitamins
Latin America
Carotenoids
Asia
Feed enzymes
Rest of the World
Minerals/DCP
Other blending ingredients
Other
Sales by application landscape (%) Sales by differentiated segment (%)
Aqua Straight actives

Pet Forms
Swine Premix
Poultry
Ruminant
Page 48
Animal Nutrition | Implementation of Strategy 2018
Expected market growth vs. DSM aspiration Key actions driving profitable growth
▪ Double-digit growth from feed enzymes and eubiotics

solutions, tailored to local conditions/requirements
▪ Growth in underpenetrated species (aqua, pet, dairy)

~3-4%1 – Grow beyond the historical core area of poultry
▪ Leverage Tortuga in Latin America beyond Brazil
▪ Further expansion of global premix network
Market DSM
2016-18
1. CAGR %
Page 49
Animal Nutrition Case Study | DSM and Evonik are developing a
Watch clip:
sustainable omega-3 solution for aquaculture

▪ EPA and DHA omega-3 fatty acids are essential for Driving growth of aquaculture1
animal and human health
– Essential at all life stages for humans t million
– Essential nutrients to support normal growth and 180
health for salmon 160
▪ A supply-demand gap for fish oil will limit the growth of 140
the aquaculture industry 120
Aquaculture
▪ Urgent need to find an alternative, sustainable solution 100
for EPA and DHA 80
– 17% of global wild catch is consumed for the 60
production of fish oil and fishmeal 40 Wild capture
20
0
1950 1960 1970 1980 1990 2000 2014
Aquaculture production Wild catch production
1. Source: FAO (2016)
Page 50
Animal Nutrition Case Study | Algal oil as a high-quality source of
omega 3 for the use in animal nutrition
▪ Joint development between DSM and Evonik started in Market size of fish oil and alternatives
2015 to find a sustainable solution for aquaculture
– Produce omega-3 fatty acids for animal nutrition
without using fish oil from wild-caught fish
Volume
▪ In March 2017, parties announced their intention to Supply/demand gap
jointly (50/50) produce omega-3 fatty acids (EPA and will emerge in the
DHA) from natural marine algae: near future
– Build new facility in the US, scheduled to open in
2019
– Total capex in the facility will amount to ~$200m
▪ Initial annual production capacity will meet ~15% of
total current annual demand for EPA and DHA by the
salmon aquaculture industry
Approx. 1 million tons per

year limited supply of fish oil
present as source of omega-3 fatty future
acids
1. Sources: IFFO, FAO
Page 51
Animal Nutrition Case Study | Project Clean Cow - Tackling methane
Watch clip:
emissions from cows

▪ Ruminants are a significant source of methane Anthropogenic methane sources (%)1
– Studies have shown that a cow emits 500l of methane
per day, which is equivalent to 10% of the energy it
would otherwise use for performance and milk Rice fields
production 10%
Fossil fuels
▪ Within Project Clean Cow, a special feed solution has
29%
been developed that:
– Reduces enteric methane emissions from cow/cattle by
at least 30% (indicated by published studies) Ruminants
▪ Focused on markets with highly developed dairy and beef 27%
production
▪ Potential: triple-digit sales (€ million)
▪ Launch after 2018
Waste
decomposition Biomass
23% burning &
biofuel
11%
1. Source: S. Kirschke et al., Nature Geosci. 2013, 6, 813-823
Page 52
Human Nutrition & Health
ROYAL DSM
Human Nutrition | Providing local nutritional solutions on a global scale
Overview Global specialty food ingredients market (%)

▪ Human Nutrition & Health provides (local) nutritional solutions (x) = Growth rate 2016-18 (CAGR, %)
for the food and beverage, dietary supplements and early-life Main segment is
and clinical nutrition markets, with a parallel focus on Nutritional
solutions for the pharmaceutical industry for the use of Ingredients but
DSM is active in all Preservation (2%)
vitamins, nutritional lipids (ARA/EPA/DHA) and carotenoids as Color
segments Processing aids
Active Pharmaceutical Ingredients (APIs) (€1,823m in sales in (5%)
(3%)
2016)
▪ Fundamental growth driver for DSM is the link between Texture
nutrition & health, supported by a number of global (4%)
megatrends: Total
potential Nutritional
– Macro-economic: Nutritional ingredients/products with ingredients
market:
health benefits for an aging population or local solutions for €36bn1
(3-4%)
processed foods for new customers in emerging economies;
– Behavioral trends: Nutritional solutions that lead to
healthier, safer and more sustainable foods that can be Taste
(4%)
customized to local taste and preference DSM market
– Structural trends: Reforming the retail landscape by creating share in
a shift to modern trade, by being the only integrated Nutritional
premix, vitamin and nutraceutical manufacturer capable of Ingredients
creating and delivering tailor-made formulations anywhere ~20%
1. Total specialty food ingredients market, excluding ~€20bn of commodity ingredients, e.g., soy proteins
Page 54
Human Nutrition | Value chain
Food additive manufacturers F&B manufacturers Retail brands

Fresh food: €33bn1 €2,130bn €2,740bn
€1,375bn
Consumers: >€5,245bn (excl. unprocessed foods)

▪ Vitamins
▪ Enzymes
▪ Antioxidants
▪ Hydrocolloids
▪ Colors
▪ Yeasts
▪ Cultures
▪ Carotenoids
Store brands
▪ Minerals Dietary suppl. companies €315bn
▪ Lipids €39bn
Farmer: ▪ Probiotics
€2,865bn
Commodities
€660bn
▪ Dairy
▪ Fruits Food service
▪ Cereals
€2,430bn
▪ Proteins Early life/ medical
▪ Meat/ fish €60bn
Non-food (tobacco, ▪ Oils
▪ Spices
feed, textile,
▪ Flour
seeds, etc.): ▪ Salt
€830bn ▪ Sugar
The only integrated premix, vitamin and nutraceutical producer for tailor-made formulations in the value chain
Page 55
Human Nutrition | Overview
Sales by region (%) Sales by active ingredient (%)
Europe Fat-soluble vitamins (e.g. A,D,E)

North America Water-soluble vitamins (e.g. B,C)
Latin America Carotenoids
Asia Marine PUFAs
Rest of the World Microbial PUFAs
Nutraceutical ingredients
Other blend ingredients
Other
Sales by application landscape (%) Sales by differentiated segment (%)
Dietary supplements Straight actives

Food and Beverage Forms
Infant Premix
B2C
Page 56
Human Nutrition | Implementation of Strategy 2018
▪ From product to segment marketing with segment-

specific local solutions and an aligned front-end operating
model
▪ Repair growth in North America, returning Dietary
Supplements (vitamins, omega-3) and F&B to growth
~3%1
▪ Continue double-digit growth of i-Health business
– Continue strong growth from base brands and expand
in category (e.g. bladder control, cough & cold, etc.)
and channels (e.g. medical, natural, digital, etc.)
▪ Accelerating forward solutions and premix globally
Market DSM – Have stepped up our efforts to truly create a global
premix business with best in class systems and
2016-18 processes
▪ Capture new business in nutritional ingredients for
Pharma, Clinical, and Sports Nutrition applications
1. CAGR %
Page 57
Human Nutrition Case Study | Culturelle®, a probiotic megabrand
Watch clip:
in the broader health and wellness space

▪ The global dietary supplements probiotics market is
predicted to grow at around 7% per year (2015-19) 2013-2014 2015-2016
– New product innovation is helping to fuel this growth
▪ The market is highly segmented and extremely Culturelle Culturelle Digestive
Adult Chewables Health Ex. Strength
competitive: product differentiation supported by
New form Providing growth
authenticated health claims is vital for success expands from more
▪ Culturelle® is currently the #1 selling consumer dietary consumer base committed loyal
consumer base
supplement probiotic brand in the US
▪ Top-line growth has been achieved by creating consumer Culturelle Pro-Well
demand for Culturelle® Expands probiotic
benefits to heart
– Important to understand and validate consumers’ health with Omega-
health and wellness needs 3s
– Delivered on those needs across three growth
platforms (Digestive Health, Everyday Wellness, and
Culturelle Kids
Kids) based around Lactobacillus GG − the leading
Regularity
clinically-studied probiotic strain Expands Kids line
– Positioned Culturelle® as the proven probiotic brand in with new benefits
the broader health and wellness space.
Page 58
Human Nutrition Case Study | Focus now on global expansion and
footprint
▪ Global expansion strategy focused on distribution and
consumer brand-building in Asia first and Europe later
– Different local market characteristics require new
routes to market
– Currently building expertise in these new segments
▪ Aggressive marketing support deployed to drive growth,
yet operation still in its infancy
– First signs of successful launch
▪ International marketing supporting ongoing bran-
building
Page 59
DSM Food Specialties
ROYAL DSM
DSM Food Specialties | A leading global supplier of food enzymes,
cultures, yeast extracts, flavors and other specialties
Overview Global food ingredients market (%)
▪ DSM Food Specialties is a leading global supplier of food (x) = Growth rate 2016-18 (CAGR, %)
enzymes, cultures, bio-preservation, hydrocolloids, taste and DSM’s main segments
in food specialty
health ingredients (€536m in sales in 2016)
ingredients include,
▪ DSM helps make existing diets healthier and more sustainable, amongst others, Color Preservation (2%)
giving increasing numbers of people access to affordable, processing aides (5%)
Processing aids
quality food – ‘enabling better food for everyone’ - driven by: (enzymes, cultures) (3%)
and taste (savoury)
Sugar, salt, fat reduction without compromise on taste & Texture
Health
mouthfeel (4%)
Total Nutritional
Convenience Convenience and taste are key purchase drivers ingredients
and taste potential (Human
– market: Nutrition)
Strong consumer demand for ‘kitchen cabinet’ ingredients, €36bn1 (3-4%)
Clean label
removal of undesired chemicals, clean and clear labels
More and Rapidly growing world population, food production more
faster than 8 times more efficient since 1940 Taste
(4%)
1bn new Diverse cultures, eating habits and taste/flavor preference,
DSM typically has
consumers localized solutions key despite globalisation number 1-3
positions in the
▪ Customer proximity and the ability to deliver highly tailored segments where
products are the basis for our continually expanding portfolio active
of innovative fermentation-based product solutions
Page 61
DSM Food Specialties | Value chain
Retail brands
€2,740bn
Consumers: >€5,485bn (excl. unprocessed foods)

▪ Enzymes
Food additive ▪ Antioxidants
manufacturers ▪ Hydrocolloids
€36bn1 ▪ Colors F&B manufacturers
▪ Cultures €2,130bn
▪ Flavors
Store brands
€315bn
▪ Dairy
▪ Fruits
▪ Cereals
▪ Proteins Food service
Commodities ▪ Meat/ fish €2,430bn
€790bn ▪ Oils
▪ Spices
▪ Flour
▪ Salt
▪ Sugar
Playing a pivotal role in the value chain offering healthier solutions that enhance taste and texture
Page 62
DSM Food Specialties | Enabling better food through advanced
Watch clip:
fermentation and biotechnology
Sugar Digestive Taste Food Chain Bio

Reduction Health Experience Efficiency Preservation
BIOTECHNOLOGY & FERMENTATION
Baking Savory
Beverages Brewing
Dairy
Page 63
DSM Food Specialties | Technology plays a key role in finding solutions
▪ Biotechnology in ▪ Efficiency in ▪ Innovative ▪ Disruptive

food traditional food production production
development production methods, e.g. methods, e.g. 3D
systems, e.g. urban farming printing
robotics
Page 64
DSM Food Specialties | Overview
Sales by region (%) Sales by ingredient (%)

EMEA Enzymes
North America Savory
Asia-Pacific Cultures
Latin America Food & crop protection
Hydrocolloids
Other
Sales by application landscape (%)

Beverages
Baking
Savory
Dairy
Other
Page 65
DSM Food Specialties | Implementation of Strategy 2018
Expected market growth vs. DSM aspiration

▪ Create value
Market growth DSM growth
through market-
2016-2018 2016-2018
driven innovation
based on insights
Savory 3-4% 3-4% and in close
~5%1 cooperation with
Cultures & customers
5-6% 6-7%
enzymes ▪ Focus on high
growth segments
Hydrocolloids 3-4% 7-8% of the market such
as sugar reduction,
Non-artificial bio-preservation,
>10%
sweeteners taste modulation,
Market DSM digestive health
Bio-preservation 4% 5% and food chain
2016-18 efficiency
1. CAGR %
Page 66
DSM Food Specialties Case Study | Consumers and governments globally
moving away from sugar
Page 67
DSM Food Specialties Case Study | Sugar reduction offers big opportunity
for fermentative stevia
▪ Sugar is ~80% of current sweetener market
▪ Stevia is the only viable and large scale new alternative in
the foreseeable future
▪ Fermentative stevia is the future for:
– Sustainable production
– Several relevant sweetener molecules, e.g.:
• Reb A -Available in plants
• Reb M - The most potent rebaudioside, but availability
in plants is limited
• Potentially Reb D
▪ DSM has developed a unique cost effective technology to
produce Reb A and Reb M
▪ Development program for stevia well on track
– Regulatory submissions as well as FTO/IP work streams
ongoing
– Launch plans in close cooperation with major customers
– Commercial availability projected by end of 2018
Page 68
DSM Food Specialties Case Study | Maxilact® offers dairy
Watch clip:
producers opportunities for sugar reduction and digestibility

▪ ‘Lactose-free’ and ‘no added sugar’ are two of the
fastest growing segments in dairy, driven by increasing
awareness of lactose-intolerance and health & wellness
▪ DSM was the first company to commercialize lactase and
has been innovating ever since
▪ DSM’s Maxilact® lactase breaks down lactose in dairy
products, making them suitable for lactose-intolerant
consumers
▪ Maxilact® meets the needs of lactose-intolerant
customers worldwide. Its natural sweetness also enables
dairy producers to achieve a 20 to 50% sugar reduction in
dairy products
Page 69
Personal Care & Aroma Ingredients
ROYAL DSM
Personal Care & Aroma Ingredients | Providing active, performance and
technical ingredients for cosmetic products
Overview Global personal care market (%)
▪ Personal Care & Aroma Ingredients provides innovative DSM (x) = Growth rate 2015-18 (CAGR, %)
solutions for some of the world’s best-selling beauty products active in

colored
for sun, skin and hair care as well as aroma ingredients to the Active ingredients (3-6%)
parts
flavor and fragrance industries which are used in many of the ▪ UV-filters, vitamins, skin care
world’s best-known consumer brands (€337m in sales in 2016) actives (natural extracts,
13% synthetic peptides, biotech ingr.
▪ DSM’s extensive portfolio of key ingredients includes peptides,
natural bio-actives, UV filters, hair polymers, vitamins and Performance ingredients (3-4%)
(specialty) aroma ingredients (such as lavender fragrance) ▪ Hair conditioning & styling
– The product portfolio is complemented by a unique range of 21% polymers, skin sensory modifiers &
services in the areas of formulation expertise, sensory enhancers, pigments & dyes
Total
competence, technical support, quality assurance, and potential Technical ingredients (2-3%)
regulatory approval market ▪ (Co) emulsifiers, thickeners &
€11.5bn 30% rheology control agents,
▪ The business is driven by global megatrends, local consumer
emollients, solubilizers, etc.
beauty regime insights, and growth opportunities presented by
emerging markets Surfactants (0-1%)
▪ Fatty alcohols, FA sulphates/
35% ethoxylates/ ethersulphates,
betaines, amphoacetates, etc.
Page 71
Personal Care & Aroma Ingredients | Value chain
Chinese Cosmetic brand companies Fast Moving Consumer

Active and UV
Selected Specialty Ingredients segments
players and Private Label Goods

Ingredients
Consumer products value at Consumer products value at
(€1.5bn)
manufacturer level: €240bn manufacturer level: €380bn
Performance
Ingredients
(€2.5bn)
Technical
Ingredients
(€3.5bn)
Surfactants
(€4.0bn)
Base Chemicals
(€14.obn)
Leading position in selected key ingredients for cosmetic companies
Page 72
Personal Care & Aroma Ingredients | Overview
Watch clip:
Sales by region (%)
Europe
North America
Latin America
Asia Pacific excl. China
China
Sales by segment (%)
Sun
Vitamins
Skin
Aroma Ingredients
Other
Page 73
Personal Care & Aroma Ingredients | Aroma Ingredients provides
lavenders and ionones to the fragrance and flavor industry
▪ The aroma ingredients portfolio consists of lavenders and Overview of the fragrance and flavor industry (€m)
ionones that are sold to the world’s leading fragrance and
flavor companies Synthetic Essential oil/natural
▪ Products find their use mainly in home and personal care 4.5bn 1,1bn
products fine fragrances as well as food in the food
industry 1.1
Terpenes Lavender &
▪ DSM product range includes: Ionones
350
– Ionones 1.0
• Beta-Ionone Benzoids
• Methyl-Ionone 0.2
Citrus
• Irone Musk
– Lavender
• Linelool Pinene
• Linalyl Acetate 2.4
• Tetrahydrolinalool
Menthol
F&F ingredients Terpenes
Page 74
Personal Care & Aroma Ingredients Case Study | An innovative
Watch clip:
inorganic UV filter suitable for a wide range of products

▪ Titanium dioxide finds extensive applications in the personal
care sector, being used as a pigment, sunscreen and thickener
– Its high refractive index, strong UV light-absorbing
properties and resistance to discoloration under UV light
make this the fastest-growing technology segment in the UV
filters market
▪ DSM offers a unique grade of titanium dioxide: PARSOL® TX, an
inorganic UV filter with excellent formulation compatibility,
which makes it suitable for a wide range of product
applications
▪ PARSOL® TX became the first titanium dioxide UV filter to
comply with the amended EC Regulation on Cosmetic Products
– Speedy compliance with the amended EC regulation offered
us a significant competitive advantage, establishing
PARSOL® TX as the global number one product grade in
titanium dioxide technology
▪ As a direct result of our regulatory expertise and dedicated
customer support, sales of PARSOL® TX increased by 55% in
2016
Page 75
Personal Care & Aroma Ingredients Case Study | Revealing the power of
beautiful skin with responsible and natural ingredients
▪ “Health and Wellness” societal trend encourages
customers and consumers to search for more sustainable
solutions in personal care
▪ ALPAFLOR® line is a pioneer in the organic market:
– Standardized high altitude organic cultivation
contributing to Alpine flora diversity
– Quality, efficacy, and traceability from seed to
bioactive
▪ Green production principles
– 100% renewable energy
– 40% water reduction
– No production of chemical waste
– Vegetable waste used in compost
– Extraction solvent recycled
▪ Focused on all major skin care applications
▪ Potential: triple-digit sales
Page 76
Materials
ROYAL DSM
Materials | A high-quality portfolio focused on well-defined, higher-
growth specialty segments
Materials - Overview Sales by region (%)
▪ The Materials cluster comprises DSM Engineering Plastics, Sales | €2,513m 1% Europe
DSM Dyneema and DSM Resins & Functional Materials North America
Latin America
▪ The cluster consists of a high-quality portfolio of specialty 36% 40%
Asia
materials serving global automotive, electrical & electronics,
Rest of the World
building & construction, consumer goods, flexible food-
packaging, high-performance textiles and life protection
industries 2%
21%
▪ Key trend is substitution; customers are looking to replace
existing parts and materials with newer, more sustainable Sales by end-market (%)
alternatives Sales | €2,513m
– Through its materials, DSM is a leading provider of these
Building & Construction
sustainable innovations, meeting demands for greater 17%
Automotive & Transport
efficiency, safer materials and improved environmental 27%
Electrics & Electronics
performance
(Food) Packaging
23% Other
18%
15%
Page 78
Materials | ‘Silent’ transformation of the Materials portfolio toward
higher-value, more sustainable specialty products continues
High Accelerated
Functional
growth Materials
High-Performance
Growth PA6 Plastics Solar1
Compounds
Biomedical1
Maximize
Market growth

PA6
returns Resins Fiber Solutions
Polymers
Powder
Coating Resins
Dyneema® Life
Protection
- DSM Engineering Plastics - DSM Resins & Functional Materials


1. Whilst not part of the cluster, the Emerging Business Areas of Biomedical and Advanced Surfaces are also related to Materials and represent promising
growth platforms for the longer term
Page 79
Materials | Implementation of Strategy 2018
DSM Engineering Plastics

▪ Highly specified application development for global
customers in high-performance plastics ‘winning’
segments
~3-4%1 ▪ Continue to grow by leveraging global footprint of
commercial and technical resources to lead the PA6 and
high-performance polyamides markets in innovative
growth
DSM Dyneema
▪ Development of new application segments and product
solutions in existing segments for Fiber Solutions
Market DSM ▪ Continue re-focus on growing Life Protection segment
DSM Resins & Functional Materials
2016-18 ▪ Grow customer base profiting from fiber-to-home trend
▪ Drive substitution from solvent to water and other
sustainable solutions in coatings
1. CAGR %
Page 80
Materials | 2016 key financial data1
Sales and sales volume growth (%) Adj. EBITDA & Adj. EBITDA margin (%) Adj. EBIT & Adj. EBIT margin (%)
2,460 2,528 2,513 435 311
384
250
323
204
-4 4 3 -4 -1 11 13 13.1 15.2 17.3 6 8 8.3 9.9 12.4
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
ROCE (%) Capital employed (at 31 Dec.) Capital expenditure (accounting)

17.6 1,744 1,723 1,807 106
98
14.4
11.9 71
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
1. 2012-13 figures added for comparison only. Figures are based on non-audited, restated estimates adjusting for divestitures, acquisitions and other non-
recurring items
Page 81
Materials | End-market segments offer growth options enhanced by
substitution based on application development capabilities
DSM DSM Advanced
DSM Engineering Plastics1 DSM Dyneema DSM Resins & Functional Mat.
Biomedical Surfaces
Life Fiber Sustainable Functional Regenerative

Automotive Electronics Coatings Materials Solar
Protection Solutions Biomaterials
Replace metals & Replace traditional Fossil fuel

Replace steel/aluminum & aramids Environmentally friendly solutions
hazardous materials solutions replacement
Growth via end markets and substitution based on application development
Page 82
Materials | Locations
Global presence in R&D and production supporting preferred partnerships in winning segments
Page 83
DSM Engineering Plastics
ROYAL DSM
DSM Engineering Plastics | A global engineering plastics player with a
broad range of value-adding polyamides and polyesters
▪ DSM Engineering Plastics is a global engineering plastics Engineering Plastics market by product (%)
player with a broad range of value-adding, high
9% PA6
performance polyamides and polyesters (€1,312m in sales 3%
in 2016) 27% PA66
Total PBT/PET
▪ DSM targets three key industries: automotive, electrical 20% potential HPEP
and electronics and flexible food packaging: market:
TPC
– In automotive, focus is on lower fuel consumption and €19bn
POM
emissions reduction via weight and friction reduction 20%
21%
and via electrification and on connectivity, safety and
comfort Key segments
– The electrical and electronics industry continually
demands improvements in terms of functionality,
miniaturization and process efficiency, as well as Electronics &
Automotive Packaging
looking for ways to address the issue of e-waste Electricals
– Reduction of food waste and longer shelf-life is the ▪ Powertrain ▪ Connectors ▪ Flexible food
▪ Air/turbo ▪ Frames & casings packaging for meat,
main driver in flexible food packaging management ▪ Wire & cable fish and cheese
▪ Safety components ▪ Power distribution
▪ Automotive ▪ Electrical components
electronics ▪ (LED) lighting
and lighting
▪ Interior/exterior
Page 85
DSM Engineering Plastics | Product overview
Watch clip:
▪ Today, DSM Engineering Plastics has one of the broadest Extensive high-performance plastics portfolio
portfolios of high-performance plastics with global
leadership positions in many of its products in the areas
of high-performance plastics such as Stanyl®, ForTii®,
Xytron®, Arnitel®, Arnite®, EcoPaXX®, Akulon® and
Novamid®
▪ Using its broad, high-quality materials portfolio and in- PEEK
PPA ForTii® Ace
depth technology know-how, DSM works in close PA4T
PPA ForTii®
collaboration with customers to develop breakthrough PEI PA46
LCP
PSU PA410
innovative solutions PPS
– Low emission concepts PES

TPC
– Halogen- and lead-free concepts PET
PC PA6 PA66 P6/66

– Eco-efficiency mPPO Blends PBT
– Cradle-to-Cradle certified solutions POM
– Recycle-based concepts ABS PMMA

PE PP
PS PVC
– Bio-based concepts Amorphous Semi-crystalline
Page 86
DSM Engineering Plastics | DSM invented the high temp. polyamides
Watch clip:
space and continues to introduce more advanced grades to its offering

▪ Stanyl® PA46 was the first high performance polyamide in Historic development overview
the market and opened up High Temperature Polyamides
(HTPA) as a new class of materials
▪ Launched in 2008, DSM’s semi-aromatic polyamide, ForTii®
(PA4T), combined the benefits of existing PPA with DDR, I/O,
Data
improved high temperature mechanics of Stanyl PA46 connectors
▪ Unique proprietary position with PA46, PA4T 1986 1992 2003 2007 2008 2010 2011 2013 2014 2015 2016
– In Q4 2016 DSM launched the next generation high Reflow
soldering
performance polyamide family, again opening a new increases
required T
Launch Diablo
▪ Full halogen-free
market space: Halogen-free portfolio ForTii® Ace
(PA46) wave starts ▪ Stanyl® Diablo BM
• ForTii® Ace has a glass transition temperature of
160ºC and has a higher resistance to various
automotive oils and chemicals
▪ DSM materials are in 87% of all cars and nearly every
mobile device
Page 87
DSM Engineering Plastics | Value chain
DSM + Strategic Partners Parts producers/

System suppliers OEMs
molders
Polyesters
Automotive
High
Performance
Polyamides Electronics & electrical
PPS
JV (PPS)
Consumer Goods
PA66
Compounds Strat. partnership
PA6
Food packaging
(Polymer and
Compounds) Russia JV
Developing applications further down the value chain
Page 88
DSM Engineering Plastics | Value chain driven by application
development at leading OEMs and system integrators
Material and performance specifications
Convertor
Injection, Parts System
Monomer Polymer Compound OEM End user
Moulding, producer supplier
Extrusion
DSM’s solutions provide high value-add materials combined with design

and processing support
▪ 75% of our business is highly specified by leading global brands
▪ Value is captured at the converters
▪ Commercial and technical resources equally distributed throughout the globe
Page 89
DSM Engineering Plastics | Overview
Sales by region (%) Sales by end-market (%)
Europe Automotive
North America Electrics & Electronics
Latin America Flexible Food Packaging
Asia-Pacific Consumer Goods
CO2 requirements drive substitution growth Engineering plastics in a car

Grams CO2/Km (equivalent)
280
260
240
220
200 Australia
180
160
140
120 China
100 USA
80 Japan
60 Europe
2003 2006 2009 2012 2015 2018 2021 2024 2027 2030 2003 2006 2009 2012 2015 2018 2021 2024 2027 2030
Page 90
DSM Engineering Plastics Case Study | Arnitel® offers real design
Watch clip:
freedom while ensuring extreme ease of wear demanded by consumers

▪ The wearable electronics market is poised to triple in
size between 2015 and 2020
– Applications range from fitness & wellness through
medical & healthcare to infotainment & industrial
▪ The quest for improved connectivity, greater
functionality and enhanced design is driving growth
– Physical comfort and the possibilities of color play
a crucial role in the design of today’s wearables:
• Arnitel® TPE from DSM is easy to process via
injection molding, and can be used in
combination with other thermoplastics such as
polycarbonate, ABS, PET and PBT, providing
excellent adhesion
• Being intrinsically bright, with high UV
resistance, Arnitel® permits the production of
compounds in a broad range of colors
• Arnitel® gives the strap the required soft touch
and feel, and is very comfortable to wear in
direct contact with the skin, causing no allergic
reactions
Page 91
DSM Engineering Plastics Case Study | Stanyl® Diablo delivers
performance in the world’s first high-heat plastic air intake manifold
▪ For the i8, BMW was looking for a high-heat
thermoplastic solution for its AIM/CAC1 that offered
superior performance and thermal stability and stiffness
above 200°C
▪ With Stanyl® Diablo, DSM offered the solution leading to

the world’s first high-heat plastic AIM/CAC combination:
– Revolutionary design of air intake manifolds
– Eliminates need to return to metals due to increasing
temperature requirements
– Higher-performing engine while still meeting new
emission limits
– Weight reduction of up to 40% over aluminum
1. Air Intake Manifold with integrated liquid-cooled Charged Air Cooler
Page 92
DSM Dyneema
ROYAL DSM
DSM Dyneema | DSM is the inventor of the world’s strongest fiber™
Watch clip:
▪ DSM produces the world’s strongest fiber™: 15 times stronger High-performance fiber market (%)
than steel1, 40% stronger than aramid, and floats on water
(€297m in sales in 2016)
▪ The business is driven by the need for lightweight, sustainable 1%
solutions that offer extreme durability coupled with improved
safety and ergonomics 27%
– DSM’s global product leadership is based on unique, IP-
protected technology platforms
Total
▪ Applications with Dyneema® push the boundaries of light- potential
weight strength, offer comfort and safety and are inherently 53%
market:
>€1.2bn
more sustainable than the materials substituted
– Dyneema® products typically replace traditional materials
such as steel and aramid 19%
▪ DSM’s well-established Fiber Solutions business serves the high-

protective textiles and commercial marine & sports segments,
while Life Protection provides personal and vehicle ballistic Dyneema® UHMwPE p-aramid
protection solutions Other UHMwPE LCP and other
– New applications include performance fabrics, hybrid carbon
composites and synthetic chains
1. On a weight-for-weight basis
Page 94
DSM Dyneema | Value chain
Rope & Assembler System End customer

netting integrator
Commercial manufacturer
Marine &
Sports
UHMwPE resin Fiber Glove knitter Brand owner/ Distributor/ End customer
producer manufacturer Private Label direct
High
Protection /
Textiles
UD UD presser/ Vest Distributor End customer

manufacturer weaver manufacturer (optional)
Life
Protection
As the world’s strongest fiber™, DSM Dyneema is uniquely positioned when continuous high performance is of
utmost importance
Page 95
DSM Dyneema | Overview
Sales by region (%) Sales by end market (%)
EMEA Life Protection

North America Fiber Solutions
Latin America Other
APAC
Only UHMWPE player with assets in 3 main continents
Geleen-Heerlen, NL
Laiwu, China Tsuruga, Japan

Stanley, NC
M esa, Arizona Greenville, NC
Singapore
M anufacturing Site
M anufacturing JV with Toyobo
Tech Center
Global HQ
Regional HQ
Page 96
DSM Dyneema | Product overview
Technologies and form factors Key markets Overview

Industry Applications Value proposition
▪ Military & Law ▪ Ballistic Vests, ▪ Lightest weight
Enforcement Inserts, protection and
Helmets, increased comfort
Polymer Vehicle
Sheets protection
▪ Maritime, ▪ Ropes, cables, ▪ Lower operation cost
Fishing, slings, nets, and footprint and
Offshore, fishing and increased worker’s
Fiber Industrial, yachting lines safety
Aviation
▪ Automotive, ▪ Cut resistant ▪ Better cut protection
Fabrics & Manufacturing, gloves, at higher comfort
Laminates Food Protective level
workwear
▪ Sports & ▪ Jeans, Athletic ▪ Ultra lightweight,
Lifestyle Footwear, improved durability,
Sports Apparel increased protection
Page 97
DSM Dyneema Case Study | Meeting the deep water challenge
Watch clip:
▪ Developed for use offshore, mooring ropes with

Dyneema® Max Technology outperform the alternatives,
surpass industry standards for deep water permanent
mooring, and will outlast the operational life of the
installation
▪ Seven times stronger than steel wire rope, the fiber
opened the door to applications where the strengths of
Dyneema® are now no longer compromised by an
excessive creep
▪ The DM20 fiber extended the range of Dyneema®
applications in offshore to long-term permanently loaded
systems and set the standard for permanently mooring
FPSO vessels1:
– 30% smaller diameter than equivalent polyester rope
– 30% stiffer and 70% lighter than equivalent polyester
rope
– More freedom in riser design, planning, and
installation
1. Floating production, storage and offloading vessel
Page 98
DSM Dyneema Case Study | High stiffness and low weight for safe station
keeping
▪ Petrojarl Knarr was the first FPSO vessel to employ
Lanko®force riser tethers made with Dyneema® DM20
fiber
– Production was started successfully in April 2015, 120
kilometers off the coast of Norway
▪ Its riser tethers, made with Dyneema® DM20, provide
permanent subsea anchoring of the risers between
seabed and vessel
▪ Each of the riser tethers comprises two tethers made
with Dyneema® DM20 connected to a hold-down clamp
with an anchor
– Allows for rotation around two axes
▪ Using Dyneema® DM20 from DSM not only led to reduced
system and installation costs but also to increased
worker safety during handling
Page 99
DSM Resins & Functional Materials
ROYAL DSM
DSM Resins & Functional Materials | A global coatings producer with a
well-balanced portfolio in sustainable coatings
▪ DSM Resins & Functional Materials is a global leader of Global paints and coatings market (%)
sustainable, waterborne coating and powder coating resins that
are used in a wide range of applications, while its UV-curable
fiber-optic coatings are recognized worldwide as the standard 3%
for fiber protection and identification (€904m in sales in 2016) 8% 1%
– Coating resins determine to a large extent the properties of 2% 25%
the final product
9%
▪ Key trend is the shift from traditional solvent-based coatings Total
that contain hazardous materials to the use of more potential
sustainable coating technologies 9%
market:
~€30bn
▪ Expanding the field of properties to enlarge the range of
applications in which waterborne, powder and UV coatings can 20%
be used remains key 9%
▪ Besides end-user preference, legislation on the reduction of 14%

substances such as Volatile Organic Compounds continues to be
an important driver for this substitution world-wide Architectural wall Automotive OEM
▪ In fiber-optic coatings, signal reliability and field performance Architectural trim Automotive refinish
are main drivers for growth as global bandwidth demand for Industrial wood Powder
networks continue to surge General industrial Marine

Protective Plastic coatings
1. On a weight-for-weight basis
Page 101
DSM Resins & Functional Materials | Value chain
Impression of end
Resins - ~€30bn Customer base
market
Solvent-based
resins
Powder
resins
Water-based
resins
UV curing
resins
Ideally positioned as the industry continues to move to more sustainable coatings
Page 102
DSM Resins & Functional Materials | 5 business lines overview
Sustainable coating resins Functional Materials

Powder Fiber SOMOS
Specialty
DSM-AGI Coating Optic 3D
Resins
Resins Materials Printing
UV Powder Waterborne Fiber Optics 3D printing
Applications Very High Protecting Prototyping

for Industrial sustainable performance Optical Fibers and small runs
and Packaging technology for low/ no VOC
applications Industrial coatings and
Coating packaging
Page 103
DSM Resins & Functional Materials | Resin is a key component in coatings
~30%: Water or Volatile Organic Compounds
~5%: Additives & Preservatives
~20%: Pigments
~45%: Resin (binder)
Page 104
DSM Resins & Functional Materials | Coatings contribute 21% to global
NMVOC’s. Continuous move to sustainable technologies
Global emission of NMVOC (%) Increasing shift away from solvent Coatings sales by end market (value)
North America
15%
UV Powder
Solvents from 2% 5% Ocea nia
Commercial, Res t Of As ia 1% North Ameri ca
Coatings & 14% 15%
institutional and LatAm
Paint
households Centra l a nd South
21% Ameri ca
8%
15% India
8% 4% Bra zi l
4%
Energy
production and
SB
Asia
50mTs
Solvent and distribution
WB
49% 52% €100b
product use 10% Europe
15% 44% 16%
Industrial Chi na
processes 29% Mi ddle East
15% 3% CIS
Road transport
4% EMEA
15% Afri ca
2% 25%
Page 105
DSM Resins & Functional Materials | Ideally positioned in the more
sustainable coatings segments
Sales by region (%) Sales by end markets (%)
EMEA Industrial
North America Architectural
Latin America Packaging & graphic arts
Asia-Pacific Others
Extensive portfolio in sustainable specialty resins
Func.
Mat.
Specialty Resins
Powder
Solvent-based
Page 106
DSM Resins & Functional Materials | After designing the first ever fiber-
optic coatings 40 years ago, DSM is the global leader in this segment
▪ Without fiber-optic cable there is no fast internet
connecting the world. And without UV-curable coatings,
there is no fiber-optic cable
▪ DSM is the world’s leading supplier of fiber-optic
coatings, which help assure signal reliability and protect
fibers from harsh environmental conditions
– DeSolite® Supercoatings made by DSM is the industry
leading coating solution for fiber protection worldwide
▪ In additive manufacturing – 3D printing – DSM offers
highly efficient and effective prototyping technologies
and supports the industry in accelerating the pace at
which new products are designed and brought to market
Page 107
DSM Resins & Functional Materials Case Study | Transforming the
Chinese, solvent-based, sea freight container industry
▪ Since the beginning of 2014, the Chinese government has In 2015, 2.5 million 20 foot
been paying increasing attention to environmental equivalent containers were Today, only a small number
protection built, generating some of these – some 20,000 in
– This includes introducing more stringent regulations 130,000 tons of VOC 2015 – are coated with
on VOC emissions from solvent-based coatings emissions and constituting waterborne coatings
one of the major VOC
▪ 95% of the world’s sea freight containers are made in emission sources in China
China, and almost all are painted with solvent-borne
coatings
▪ To mobilize industry support for the switch to
waterborne coatings in China, DSM founded the
Waterborne China Platform in 2010
– Represents leading coatings, resins and additive
manufacturers who are in a position to influence key
bodies – such as the Guangdong Coating Association, A new container requires 60-
the Container Owner Association and the China 70kg of paint: if all new
Container Industry Association, as well as the Chinese containers were painted with
central and regional Environment Protection Bureau – waterborne coatings, this
would require 165,000 tons of
in the drafting of VOC and coating standards for the
waterborne coatings a year
container industry
Page 108
DSM Resins & Functional Materials Case Study | Further driving the
switch to waterborne coatings in China
▪ As a result of these efforts, in 2016, the Chinese
container industry decided to sign a convention to
introduce waterborne coatings in two steps
– Guangdong Province made the switch in July 2016 and
the rest of the country will follow by April 2017
▪ Working with paint and coatings customers such as
Valspar (now Sherwin Williams), DSM is already seeing
considerable growth in its business as a result
▪ Other industries and governing bodies are now following
suit:
– The Chinese furniture industry is switching to
waterborne coatings ahead of the introduction of the
relevant legislation
– The Shenzhen Municipality has forbidden the use of
solvent-borne coatings for external wall applications
Page 109
DSM Resins & Functional Materials Case Study | First and important
Watch clip:
steps in creating coatings using plant-based materials

▪ Decovery® plant-based resins are based on a novel
process of converting renewable materials
– Free of Volatile Organic Compounds, has an extremely
low odor and offers many additional benefits to the
end-products
▪ Praxis, one of the largest Dutch hardware chains, was
looking for a sustainable solution for its premium range
of private label decorative paints
– In close cooperation with DSM, Praxis was able to
further improve quality and sustainability using
Decovery®
▪ In 2016, DSM and ICA Group together announced a new
water-based coatings line for interiors called IRIDEA BIO
BEST PRODUCT OF THE YEAR
2015 - 2016
Page 110
Innovation Center
ROYAL DSM
Innovation Center | Accelerating and supporting innovation at DSM
Watch clip:
▪ The DSM Innovation Center has two main functions: Organization

– Enable and accelerate innovation power and speed in
DSM’s core businesses as a center of excellence. It Innovation Center
protects DSM’s intellectual property, and also focuses
on adjacent technologies and business opportunities for
growth through DSM’s Corporate Research Program and
Accelerators New business development
Venturing & Licensing activities;
– Focus on areas outside the current scope of the
business groups, investing in new and innovative growth Supporting Business Groups Creating new businesses for
options through the DSM Business Incubator and by and EBAs in accelerating DSM, outside the current
developing and extracting value from the company’s innovation and meeting scope of the existing
Emerging Business Areas (‘EBAs’) in promising end- innovation targets Business Groups
markets that provide strong long-term growth platforms
which are based on the company’s core competences in ▪ Chief Technology Officer ▪ Emerging Business Areas
health, nutrition and materials – Biomedical
▪ Excellence in innovation
– Bio-based Products &
▪ Intellectual Property Services
▪ Venturing & Licensing – Advanced Solar
▪ Business Incubator
Page 112
Innovation Center | The Emerging Business Areas provide long-term
growth platforms – Focus lies on development and extracting value
DSM Biomedical DSM Bio-based Products & Services DSM Advanced Solar
Enabling innovative medical devices Enzymes/yeast for biomass conversion Efficiency-increasing products for solar
▪ Partners with the medical industry ▪ Pioneers advances in biomass conversion ▪ Aim is to accelerate the uptake and
worldwide to develop innovative and seeks to demonstrate the commercial effectiveness of solar energy by focusing on
biomaterials and regenerative medical viability of sustainable, renewable the development and commercialization of
devices that improve patients’ lives technologies in collaboration with strategic technologies and materials that increase the
partners in the value chain (e.g. POET in efficiency of solar modules, reducing the
▪ With facilities in the US and the
cellulosic bio-ethanol and Reverdia in bio- cost of energy delivered
Netherlands, DSM develops innovative
succinic acid)
materials, components and full medical ▪ DSM has built a strong position as a solution
devices based on biomedical polyurethanes ▪ Leveraging the expertise and products DSM provider for high-performance solar PV
and polyethylenes, resorbable polymers, has built up in 2nd generation bio-fuels to materials, primarily driven by our market-
ceramics, collagens, extracellular matrices, create new business in making the leading anti-reflective coating and an
silicone hydrogels, device coatings, and production of all generations of bio-fuels innovative new type of backsheet
drug delivery platforms more efficient and sustainable
▪ Aim is to outpace market growth in high- ▪ Strategy is to license technology and
growth segments of the medical device expertise, enabling future partners to
market including cardiology, neurology, convert biomass in a commercially viable
ophthalmics, diabetic care, and orthopedics and sustainable way
Page 113
Innovation Center | Implementation of Strategy 2018
Aspirations underpinning Group targets
▪ Support innovation in core businesses to facilitate

earnings and profit growth towards and beyond 2018
▪ Develop and extract value from Emerging Business Areas
▪ Cost of Innovation Support:
- €15-20m EBITDA/year
▪ EBITDA contribution of the Emerging Business Areas:
from +€5m (2015) to +€30-40m (2018)
▪ Overall Innovation Center
EBITDA break-even as of 2016
1. CAGR %
Page 114
Innovation Center Case Study | DSM is meeting the needs of an attractive
growth market
▪ Solar PV has emerged as a mainstream source for power Growth of global PV capacity | 2000-2015
generation
YoY ~40%
– Driven by incentive schemes and increasing (2010-2015)
competitiveness
▪ In 2015, solar photovoltaic (‘PV’) accounted for 25% of
new power capacity added globally
▪ Continued strong market growth expected
– Enabled by further reduction of the price of solar power
($/kWh)
Lower PV prices driven by higher efficiency and durability
▪ DSM has established a leading position in anti-reflective
coatings and is recognized as high performance material
supplier to the PV industry:
– DSM’s highly durable, proprietary technology for anti-
reflective coatings delivers unparalleled transmission
gain and easy handling and durability even in extreme
weather conditions
– DSM offers a portfolio of innovative PV backsheet
products based on a patented technology
Page 115
Innovation Center Case Study | DSM solutions are lowering the
Watch clip:
cost of solar power

Frame Anti-reflective coating
Lowering cost through enhanced PV glass light transmission, resulting in
higher module power output
Glass
▪ A closed pore structure is
established through a
Encapsulant differentiating core-shell
technology, provides
unique optical,
Cells mechanical and durable
properties
Encapsulant
Backsheet
Backsheet
Lowering cost through enhanced light management and improved barrier
properties resulting in higher power output and reduced degradation
during lifetime of the module
+1.5W
Junction box
Page 116
2 Business overview
3 Financial data
ROYAL DSM
Financial data | Income statement
Income statement – DSM Continuing (2015-16) and Total DSM (5 year summary)
DSM Continuing Total DSM

in € million 2016 2015 2016 2015 2014 2013 2012
Net sales 7,920 7,722 7,920 8,935 9,283 9,429 9,131
1
Adjusted EBITDA 1,262 1,075 1,262 1,170 1,166 1,312 1,109
EBITDA 1,174 956 1,146 1,046 1,134 1,187 941
Adjusted operating profit (EBIT) 791 573 791 650 617 773 635
Operating profit (EBIT) 685 362 657 304 290 476 441
Financial income and expense (133) (164) (133) (174) (125) (144) (109)
Income tax expense (89) (46) (89) (68) (7) (76) (46)
Share of profit of associates and joint ventures 194 30 194 30 (59) 13 2
Profit for the year 657 182 629 92 99 269 288
Profit attributable to non-controlling interest 8 (2) 8 4 (46) (2) 10
Net profit attributable to equity holders of DSM 649 184 621 88 145 271 278
Dividend on cummulative preference shares (4) (10) (4) (10) (10) (10) (10)
Net profit attributable to equity holders of DSM 645 174 617 78 135 261 268
1. See page 142 of the Integrated Annual Report 2016 for reconciliation
Page 118
Financial data | Other key figures
Other key figures – Total DSM (5 year summary)
Total DSM
in € million 2016 2015 2014 2013 2012
1 2
Cash provided by operating activities 1,018 696 808 998 n.a.
Capital Employed 7,889 7,553 8,105 8,060 8,084
Capital Expenditure:
Intangible assets and PP&E 485 570 616 694 715
Acquisitions 16 106 0 424 1,265
Disposals 87 307 93 78 46
Depreciation, amorization and impairments 489 742 798 730 500
Net debt (2,070) (2,321) (2,420) (1,841) (1,668)
Dividend 310 297 296 297 263
Workforce at 31 December, headcount (#) 20,786 20,750 21,351 23,485 23,498
Employee benefit costs 1,752 1,778 1,713 1,822 1,761
1. As reported
2. Restated due to retrospective application of IFRS 11 'Joint Arrangements' that came into effect from 1 January 2014
Page 119
Financial data | Ratios
Ratios – Total DSM (5 year summary)
Total DSM
2016 2015 2014 2013 2012
ROCE (%) 10.4 8.2 7.8 9.6 8.9
Sales/ average Capital Employed 1.04 1.13 1.17 1.18 1.29
Current assets/ current liabilities 1.58 1.62 1.21 1.49 1.53
Equity/ total assets 0.48 0.48 0.49 0.51 0.50
Gearing (net debt/ equity plus net debt) 0.25 0.29 0.29 0.23 0.22
Adjusted EBIT/ Sales (%) 10.0 7.3 6.6 8.2 7.0
Net profit/ Avg. shareholders' equity available to
holders of ordinary shares (%) 11.1 1.4 2.4 4.5 4.8
Adjusted EBITDA/ net finance costs 9.5 7.4 9.9 9.6 10.2
Page 120
Financial data | Balance sheet - Assets
Balance sheet – Assets - Total DSM (5 year summary)
Total DSM
in € million 2016 1 2015 1 2014 1 2013 2012
Intangible assets 3,188 3,228 2,867 2,690 2,793
Property, plant and equipment 3,325 3,171 3,673 3,611 3,811
Deferred tax assets 355 366 427 364 340
Share in associates and joint ventures 586 872 762 295 40
Other financial assets 463 191 130 152 141
Non-current assets 7,917 7,828 7,859 7,112 7,125
Inventories 1,800 1,627 1,739 1,638 1,803
Receivables 1,653 1,556 1,769 1,597 1,799
Financial derivatives 40 47 47 126 62
Current investments 944 9 6 19 12
Cash and cash equivalents 604 665 669 770 1,121
Assets held for sale 11 37 637 44
Current assets 5,041 3,915 4,267 4,787 4,841
Total assets 12,958 11,743 12,126 11,899 11,966
1. Application of IFRS 11 'Joint Arrangements' that came into effect from 1 January 2014. 2013 has been restated. The years 2012 has not been restated
Page 121
Financial data | Balance sheet – Equity and liabilities
Balance sheet – Assets - Total DSM (5 year summary)
Total DSM
in € million 2015 1 2015 1 2014 1 2013 2012
Shareholders' Equity 6,072 5,541 5,723 5,908 5,874
Non-controlling Interests 108 90 213 188 168
Equity 6,180 5,631 5,936 6,096 6,042
Deferred tax liabilities 278 319 365 375 236
Employee benefits liabilities 490 496 479 326 388
Provisions 128 98 105 97 125
Borrowings 2,552 2,557 1,637 1,725 1,922
Other non-current liabilities 158 228 81 75 94
Non-current Liabilities 3,606 3,698 2,667 2,598 2,765
Employee benefits liabilities 40 44 45 34 42
Provisions 54 41 42 65 81
Borrowings 853 253 1,143 841 642
Financial derivatives 253 232 362 190 299
Current liabilities 1,972 1,842 1,915 1,845 2,081
Other liabilities held for sale - 2 16 230 14
Current liabilities 3,172 2,414 3,523 3,205 3,159
Total liabilities 12,958 11,743 12,126 11,899 11,966
1. Application of IFRS 11 'Joint Arrangements' that came into effect from 1 January 2014. 2013 has been restated. The years 2012 has not been restated
Page 122
DSM is committed to maintain a strong balance sheet, while rewarding
shareholders with stable, preferably rising dividends
Financial policies1 Borrowings by maturity
▪ DSM’s refinancing has been geared towards evenly 2,245
spread maturity profile, to reduce refinance risk
▪ Average cost of long-term funding has been reduced
from 4.2% (2013), 3.9% (2014) to 3.4% (2016) 853 2
▪ No significant pension fund liabilities
300
▪ Committed to maintain a strong investment grade credit 6 1
rating 2017 2018 2019 2020-21 After 2021
Cash allocation priorities Dividend per ordinary DSM share - €
▪ DSM has set the following priorities for cash allocation 2.00 1.65 1.65 1.65 1.75 6.0%
1) Disciplined capex to support profitable growth 1.45 1.50
1.50
2) Dividend 4.0%
1.00
3) Acquisitions 2.0%
4) Cash back to shareholders 0.50
0.00 0.0%
▪ Dividend policy of ‘stable and preferably rising’ 2011 2012 2013 2014 2015 2016
dividends
Dividend yield (based on average share price)
1. More detailed information regarding DSM’s financial policies can be found in DSM’s Integrated Annual Report
2. In 2016 favorable market conditions allowed to already lock-in low interest rates and refinance the upcoming maturing of a €750m ten-year bond in 2017
Page 123
2 Business overview
3 Financial data
ROYAL DSM
Information about the DSM share
▪ DSM has two types of shares: 1 class of per ordinary share in € 2016 2015 2014 2013 2012
ordinary shares and 2 classes of Cumulative Adjusted net profit 2.90 2.14 2.34 2.84 2.52
Preference Shares, series A (issued, not Net profit 3.52 0.45 0.78 1.52 1.62
Operating Cash Flow 5.79 3.93 4.62 5.74 4.35
listed) and B (not issued, not listed)1
Dividend 1.75 1.65 1.65 1.65 1.50
▪ Ordinary shares in Koninklijke DSM N.V. are Interim Dividend 0.55 0.55 0.55 0.50 0.48
listed on the NYSE Euronext stock exchange Final Dividend 1.20 1.10 1.10 1.15 1.02
in Amsterdam, the Netherlands (Stock code Pay-out incl. dividend on cumulative preference shares
as % of adjusted net profit 60 71 71 59 60
00982, ISIN code NL0000009827) Dividend yield (dividend as % of average price of an
▪ Options on ordinary DSM shares are traded ordinary DSM share) 3.3 3.4 3.3 3.2 3.7
on the European Option Exchange in Share prices on Euronext Amsterdam (closing price)
Highest price 64.18 55.11 57.97 59.75 46.29
Amsterdam, the Netherlands Lowest price 41.40 39.62 44.44 43.93 36.33
(Euronext.liffe) At 31 December 56.96 46.28 50.64 57.16 45.79
▪ In the US a sponsored unlisted American Number of ordinary shares outstanding (x 1,000)

At 31 December 175,002 174,923 173,537 173,963 168,684
Depositary Receipts (ADR) program is Average 175,100 174,357 172,605 172,183 165,543
offered by Deutsche Bank Trust Co. Daily trading volumes on Euronext Amsterdam
Americas (Cusip 780249108), with four Average 787 912 801 728 823
ADRs representing the value of one Lowest 152 130 104 95 225
ordinary DSM share Highest 2,554 4,506 7,981 3,049 2,720
1. More detailed information can be found on page 124 of DSM’s Integrated Annual Report 2016
Page 125
Information about the DSM share (cont’d)
Development of number of ordinary DSM shares

2016 2015
Issued Repurchased Outstanding Outstanding
Balance at 1 January 181,425,000 6,501,973 174,923,027 173,536,815
Changes
Reissue of share in connection with exercise of options rights - (3,243,102) 3,243,102 1,056,880
Repurchase of shares - 5,200,000 (5,200,000) (2,300,000)
Dividend in the form of ordinary shares - (2,035,537) 2,035,537 2,629,332
Balance at 31 December 181,425,000 6,423,334 175,001,666 174,923,027
Market capitalization at 31 December (€ million) 10,334 8,396
Geographical spread of DSM shares (total)

6% North America Switzerland
3% 3% The Netherlands Germany
4% 31%
6% United Kingdom Asia-Pacific
France Other countries
14%
33%
Page 126
DSM Investor Relations | Overview and events
▪ DSM attaches great value to a good relationship with its Calendar1

shareholders
2 May 2017 7.00h CEST Publication Q1 2017 results
▪ The Investor Relations team’s primary tasks are to
maintain contacts with current and potential shareholders 3 May 2017 14.00h CEST Annual General Meeting of
as well as with sell-side analysts and to provide quality Shareholders 2017
information about developments at DSM that is equally 5 May 2017 Ex-dividend date 2016
and simultaneously provided and accessible to all
interested parties 26 May 2017 Payment date of net cash
dividend/ stock dividend
▪ Silent periods – In the period preceding the publication of
the financial results, DSM will be in a ‘silent period’ where 8 July 2017 7.00h CEST Silent Period Q2 2017
it will not engage in a business dialogue with analysts or

1 Aug 2017 7.00h CEST Publication Q2 2017
investors
▪ Consensus – At regular intervals, DSM asks VARA research 25-26 Sept. 2017 Investor Seminar 2017
to compile a consensus number for key financial
parameters by approaching a number of sell-side analysts 7 Oct. 2017 7.00h CEST Silent period Q3 2017
that actively cover DSM. This consensus is published on
the DSM website 2 Nov. 2017 7.00 CEST Publication Q3 2017
1. For the latest, most up to date information, please see www.dsm.com/corporate/investors/generic/calendar-overview.html
Page 127
Additional information and disclaimer
▪ All financial data in this Factbook 2017 are based on 2016 continuing operations and in Euro million unless stated
otherwise (e.g. indicated as Total DSM)
▪ Information in this presentation has not been audited
▪ This presentation may contain forward-looking statements with respect to DSM’s future (financial) performance and
position. Such statements are based on current expectations, estimates and projections of DSM and information
currently available to the company. DSM cautions readers that such statements involve certain risks and uncertainties
that are difficult to predict and therefore it should be understood that many factors can cause actual performance and
position to differ materially from these statements. DSM has no obligation to update the statements contained in this
presentation, unless required by law.
▪ More details on DSM’s performance can be found in the latest Integrated Annual Report together with a more
comprehensive discussion of the risk factors affecting DSM’s business, which can be found on the company's corporate
website, www.dsm.com
Page 128

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DSM Factbook 2017

Dave Huizing – Vice President Investor Relations

Sandra Segers – IR Support Officer

Marc Silvertand – IR Manager

Thijs van der Heide – IR Manager

Petra Volk – IR Support Officer

▪ Stay up to date with ▪ Find us on:

▪ The app is available

People Planet Profit1

1. Continuing operations unless stated otherwise

18.0 17.3 15.9 12.5 12.4 10.0

12.0 17.6 10.4

Extensive experience in chemical

1902 1950 - 1980 1989 1998 2002-2003 2005-2010 2011-2015

In € million at 100% 2016 In € million at 100% 20162 In € million at 100% 2016

Sales 431 Sales 1,786 Sales 1,802

Adjusted EBITDA% 14% Adjusted EBITDA% 20% Adjusted EBITDA% 6%

Sales EBITDA EBITDA% Sales EBITDA EBITDA%

Net sales by origin (%) Net sales by end-use market (%)

1% 1% The Netherlands China 8% Nutrition and Health

Net sales by destination (%) Net sales by business segment (%)

1. Personal Care & Aroma Ingredients

Global presence1 Employees per region1

1. As per 31 December 2016

Key sustainability focus areas

Sustainability as business growth driver

Securing sustainable operations

▪ DSM’s nutrition partnerships focus on the following objectives:

▪ DSM’s partners range from UN agencies, governments, academia

▪ We commit support through financial and non-financial means

1. For more information please see https://www.dsm.com/corporate/about/our-company/external-recognition.html

DSM Managing Board

Feike Sijbesma Geraldine Matchett Dimitri de Vreeze

DSM Supervisory Board DSM Executive Committee

Two headline High single-digit percentage High double-digit basis point

2016 achievements: 2016 achievements:

2016 achievements: 2016 achievements: 2016 achievements:

2016 achievements: 2016 achievements: 2016 achievements:

Nutrition strategy 2018 Aspirations underlying Group targets

4▪ Accessing new segments/new

▪ Driving cash generation

▪ Increasing capital efficiency Excellence in execution

Nutrition Strategy 2018 and 2016 milestones

▪1 Expand the core

Nutrition Strategy 2018 and 2016 milestones

▪3 Expand in new segments/regions

– Successful expansion of fast-growing

▪4 New business models

– Business to farmer (B2F) network

High Accelerated Materials Strategy 2018

Specialty Coating Dyneema® ▪ Annual EBITDA growth:

▪ Above-market sales growth

Low DSM’s capability to extract value High

Materials Strategy 2018 and 2016 milestones

Specialty Coating Dyneema®

- DSM Engineering Plastics - DSM Resins & Functional M aterials

Low DSM’s capability to extract value High

• Launch of next-generation high- PA46

Materials Strategy 2018 and 2016 milestones

Specialty Coating Dyneema®

Low DSM’s capability to extract value High

Nutrition Materials Emerging Business Areas

▪ Fermentative ▪ ForTii® (HPPO ▪ 3D options (combine