The Tasty and Nutritious Future
From science to Business
Balancing Radical and Incremental Innovation
Food Valley Expo - October 12, 2015
Wageningen, NL
DSM Life Sciences and Material Sciences company
active in:
nutrition
We create solutions to bring healthier,
better performing and more
sustainable products to the lives of
people today and for generations to
come.
Net sales
Workforce
about € 10,000m
25,000
health
materials
Mission
Our purpose is to create brighter lives for
people today and generations to come
We connect our unique competences in Life
Sciences and Materials Sciences to create
solutions that nourish, protect and improve
performance
Page 3
DSM – understands change
Coal Mining
Slide 4
Commodity
Chemicals
Specialty
Chemicals
Life Sciences &
Materials Sciences
Successful transformation track record
Evolution
Life Science Products
Performance Materials
Petrochemicals
Fertilizers
Coal
1902
Page 5
1930
1950
1970
1990
Classical Biotechnology
2000
2010
Technological competences
Mechanical engineering
Chemical engineering
Polymer technology
Materials Sciences
Life Sciences
Modern Biotechnology
Global presence*
Sales by destination Q1’15*
North
America
Continuing Operations as reported ultimo
March 2015
Europe:
9,425 employees
North America:
3,283 employees
42%
Western
Europe
Latin America:
1,925 employees
Africa:
73 employees
Africa & Oceania:
113 employees
Excluding the activities for which we announced a partnership with CVC Capital Partners in March 2015,
of which DSM remains a 35% shareholder and excluding our non-consolidated Associates & Joint Ventures
Page 6
High
Growth
Economies
29%
6%
Rest of World
Asia:
5,955 employees
*
23%
Leader in Health, Nutrition and Materials
Health
Nutrition
Materials
•
Leading supplier of nutritional ingredients (including vitamins, carotenoids,
omega’s, food/feed enzymes, cultures, yeasts, nutraceuticals) for the feed,
food and personal care industries
•
Leading supplier of sustainable high performance materials for the
automotive, electrical & electronics and building & construction industries
•
Recognized as top innovator active in biomedical materials, advanced
biofuels, bio-based chemicals and advanced surfaces for solar systems
Page 7
Growth driven by global megatrends
Health & Wellness
Aging population
Healthcare issues
Food composition
Health
Page 8
Global Shifts
Population growth
Urbanization drive
Wealth increase
Nutrition
Climate & Energy
Sustainability concerns
Resources constraints
Energy concerns
Materials
Building an intrinsically innovative
company
20%
Innovation Sales 2015
Top Quartile
McKinsey Innovation
Benchmark 2012
€1B
Disruptive Platforms, 2020
Innovation is our passion
•
DSM’s innovation activities are focusing on products &
solutions that nourish, protect and improve performances,
within existing businesses
•
DSM invests in new emerging business platforms,
instrumental in turning innovations in major businesses
•
DSM recognized as top innovator in external benchmarks
Maxarome® replacing salt,
reducing health risks, whilst
maintaining a good taste
Innovation Sales (as % of total sales)
16%
18%
20%
2010
2014
2015 target
Bio-based Coating Resins
Innovation strongly contributes to DSM’s growth
Page 10
Access to large global DSM Science Community
R&D employees:
2,200
Approx 10% of
total workforce
R&D units:
over
30 units
worldwide
Life Sciences /
Materials Sciences:
approx.
50/50
Main R&D sites:
Geleen (NL)
Delft (NL)
Kaiseraugst (CH)
Shanghai (CN)
Male/female:
approx.
70/30
Annual R&D expenditure:
approx.
€490 million
(>5% of net sales)
DSM’s key R&D competences
Materials Sciences
Advanced Synthesis Materials Chemistry
Nutrition
Biotechnology
Analysis & Characterization
Process Technology
Innovation through integration of unique
competencies
Applied Biochemistry
from product to application
Process development – Downstream processing
from raw to refined product
Process development - Fermentation
from sugar to raw product
Strain development
from genes to strains
Screening
from biodiversity to genes
R&D and Innovation go hand in hand
Competences
R&D
Science
networks
Technology
Platforms
Inventions
IP
Value
Business
Models
Know-how
Ideas
Knowledge
Market Solutions
Innovation
Customer
Intimacy
Market Maturity
Mature
Emerging
Portfolio management of innovations
Red Box
Renew & Grow
existing position
Explore & Build
35-40%
25-30%
Maintain &
Strengthen
existing position
Expand to
adjacent
markets
25-30%
5%
Disruptiveness
Existing
Page 15
New
Market Maturity
Mature
Emerging
Portfolio management of innovations:
Example Maintain & Strengthen existing position
Maintain &
Strengthen
existing position
Disruptiveness
Existing
Page 16
New
Rich complex
taste
No yeasty aroma
Umami impact and
lingering effect
Low cost in use –
1/3 of basic YE
Sustainable – 81%
lower carbon
footprint than
basic YE
Renew & Grow
existing position
Market Maturity
Mature
Emerging
Portfolio management of innovations:
Examples Renew & Grow existing position
Disruptiveness
Existing
Page 18
New
FOR INTERNAL USE ONLY
Maxilact®
Generations of winning lactase
Lactose-free is a fast growing segment in dairy,
driven by increased awareness of lactose
intolerance and health & wellness.
Maxilact® breaks down lactose in dairy making
it suitable for lactose intolerant consumers.
DSM was the first company to commercialize
lactase and has a patent to ensure the absence
of off-flavor extending shelf-life of any lactosefree dairy product.
An additional benefit is that lactase can be used
to enhance the natural sweetness of a dairy
product. With our lactase, it is possible to
achieve an additional sugar reduction of up to
20%.
Maxarome® Select
Red Box
Explore & Build
Market Maturity
Mature
Emerging
Red Box examples…..
Disruptiveness
Existing
Page 21
New
Clean cow:
Reducing Methane Emission from Cattle
Identification and development of a feed additive(s) solution to:
1. reduce methane by 25-30% in vivo
2. with the potential for better performance (increased milk yield,
increased daily weight gain, etc.).
Innovation is a stage gate process
Cooperation with partners at an early stage
Ideas
Idea
identification
Idea
evaluation
Feasibility
Development
Scale up
Launch
Product
management
Ideas
feedback
feedback
New
Business
NEW SOLUTION
Innovation
summits
Know what
you want (strategy
needs to be in place)
Innovation
grants
Scientific
network
Customers
Non-Profit
organizations
Symposia,
congresses
Venturing
and scouting
Consultants
Start-ups
Professional/
social media
IP monitoring/
analysis
(internet platforms)
Industrial
Partners
Idea box
Customer
value chain
Other Innovation
Initiatives
Preparing
people to have the right
mind-set (trust and
communication)
Crowd sourcing
Academia
Innovation Network
Fishing for innovation
Customer
interaction
forum
Venturing integral part of innovation
Since 2001
•
Scouted and screened more than 5,000
companies, window on-the-world
Resulting in
•
•
~50 direct investments; >20 active in
current portfolio
Partnerships and collaborations with
>50 companies in various forms
Venture 2020 Strategy
•
•
•
•
•
(just) 4 focus areas
Industry savvy within Venturing
Strategic remains primary drive
Financial performance boundary
condition for sustainable venturing
Be present and active in innovation
hubs
Venturing integral part of innovation
•
•
Fit with DSM’s competence base?
Strategic benefits for the business
(and collaboration potential)?
2nd filter: Venture capital criteria
•
•
•
Viable business proposition?
Attractive return potential?
Exit opportunities other than
spinning-in?
Financial return potential
1st filter: Strategic relevance
O
O
O
O
O
O
O
O
O
Strategic return potential
Portfolio snapshot of direct investments
Nutrition
(Bio)medical
BioBased
Other