HEERLEN, The Netherlands, February 14, 2017
HEERLEN, The Netherlands, February 14, 2017 /PRNewswire/ --
Royal DSM, a global science-based company active in health, nutrition and materials, is updating the way in which its financial results are presented, starting with the Q4/full-year results for 2016, to be published on Wednesday 15 February 2017. The update follows recent changes to accounting and reporting guidelines in Europe.
In presenting and discussing DSM's financial position, operating results and cash flows, DSM (similar to many other publicly listed companies) uses certain alternative performance measures ('APMs') not defined by IFRS. These APMs are used in order to provide important measures of DSM's business development and management performance, and should be used as supplementary information in conjunction with IFRS measures.
In light of the European Securities and Markets Authority (ESMA) guidelines on APMs, DSM has updated the way these APM's are presented. As a consequence, DSM will no longer use the term 'Exceptional Items'. Henceforth, material items of profit or loss that management deems necessary to adjust to measure operational performance will be referred to as 'APM Adjustments', resulting in the APMs 'Adjusted EBITDA' and 'Adjusted net profit' in line with common practice.
The full update of DSM's change in presentation will be reflected in the notes to the Q4/full-year 2016 press release. A full reconciliation of the main Alternative Performance Measures to IFRS performance measures will also be given.
DSM is also updating the way Nutrition results are presented. The sales of the business group DSM Nutritional Products will be presented in four reporting units instead of the current three. The new units will be Animal Nutrition & Health, Human Nutrition & Health, Personal Care & Aroma Ingredients, and Other. As a result, the aroma intermediates business, which was reported in Human Nutrition & Health, will now be reported in Personal Care & Aroma Ingredients. Furthermore, the pharma and custom manufacturing & services activities will be reported under Other. These activities were until now reported mainly in Animal Nutrition & Health. The change in presentation has no consequences for the total sales of Nutrition.
See the annex for the new presentation of sales of the businesses for Q1-Q3 2016. In line with previous reporting, sales details will continue to be provided for the Nutrition cluster, as well as for the main business units Animal Nutrition & Health and Human Nutrition & Health, on a quarterly basis. For the other units, overall sales will be reported on an annual basis.
DSM - Bright Science. Brighter Living.™
Royal DSM is a global science-based company active in health, nutrition and materials. By connecting its unique competences in life sciences and materials sciences DSM is driving economic prosperity, environmental progress and social advances to create sustainable value for all stakeholders simultaneously. DSM delivers innovative solutions that nourish, protect and improve performance in global markets such as food and dietary supplements, personal care, feed, medical devices, automotive, paints, electrical and electronics, life protection, alternative energy and bio-based materials. DSM and its associated companies deliver annual net sales of about €10 billion with approximately 25,000 employees. The company is listed on Euronext Amsterdam. More information can be found at http://www.dsm.com.
This press release 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 press release, unless required by law. The English language version of the press release is leading.
For more information:
DSM Corporate Communications
DSM Investor Relations
Presented in press release Q1-Q3 2016 New presentation in EUR millions Q1 2016 Q1 2015 % Change Q1 2016 Q1 2015 % Change Sales - Continuing Operations 1,913 1,886 1% 1,913 1,886 1% Nutrition 1,250 1,199 4% 1,250 1,199 4% ANH 554 574 -3% 540 556 -3% HNH 508 452 12% 467 412 13% in EUR millions Q2 2016 Q2 2015 % Change Q2 2016 Q2 2015 % Change Sales - Continuing Operations 1,994 1,965 1% 1,994 1,965 1% Nutrition 1,295 1,247 4% 1,295 1,247 4% ANH 610 572 7% 598 555 8% HNH 507 502 1% 467 461 2% in EUR millions Q3 2016 Q3 2015 % Change Q3 2016 Q3 2015 % Change Sales - Continuing Operations 1,998 1,945 3% 1,998 1,945 3% Nutrition 1,303 1,253 4% 1,303 1,253 4% ANH 633 593 7% 615 577 6% HNH 497 483 3% 454 439 4% YTD Q3 YTD Q3 YTD Q3 in EUR millions YTD Q3 2016 2015 % Change 2016 2015 % Change Sales - Continuing Operations 5,905 5,796 2% 5,905 5,796 2% Nutrition 3,848 3,699 4% 3,848 3,699 4% ANH 1,797 1,739 3% 1,753 1,688 4% HNH 1,512 1,437 5% 1,388 1,312 6%