Consolidated statements
Consolidated income statement for the year ended 31 December 2007
x € million
Notes
Continuing operations
Discontinued operations
Total
Before
exceptional
items
Exceptional
items
(note 9)
Total
Net sales
 
8,757
-
8,757
-
8,757
Other operating income
4
164
-
164
-
164
 
 
8,921
-
8,921
-
8,921
Own work capitalized
 
52
-
52
-
52
Change in inventories of intermediates and finished goods
 
73
-
73
-
73
Raw materials and consumables used
 
(4,793)
-
(4,793)
-
(4,793)
Work subcontracted and other external costs
 
(1,522)
-
(1,522)
-
(1,522)
Employee benefits costs
5
(1,389)
-
(1,389)
-
(1,389)
Depreciation and amortization
6
(424)
(150)
(574)
-
(574)
Other operating costs
7
(95)
(26)
(121)
-
(121)
 
 
 
 
 
 
 
Operating profit
 
823
(176)
647
-
647
Interest costs
8
(85)
-
(85)
-
(85)
Other financial income and expense
8
10
-
10
-
10
Share of the profit of associates
 
(2)
-
(2)
-
(2)
 
 
 
 
 
 
 
Profit before income tax expense
 
746
(176)
570
-
570
Income tax expense
10
(183)
47
(136)
-
(136)
 
 
 
 
 
 
 
Profit for the year
 
563
(129)
434
-
434
 
 
 
 
 
 
 
Of which:
 
 
 
 
 
 
- Profit attributable to minority interests
 
5
-
5
-
5
- Net profit attributable to equity
holders of Royal DSM N.V.
 
558
(129)
429
-
429
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net profit attributable to equity holders
of Royal DSM N.V.
 
558
(129)
429
-
429
Dividend on cumulative preference shares
 
(10)
-
(10)
-
(10)
 
 
 
 
 
 
 
Net profit available for holders of ordinary shares
 
548
(129)
419
-
419
 
 
 
 
 
 
 
Average number of ordinary shares outstanding (x 1000)
 
 
 
 
 
178,541
Effect of dilution due to share options (x 1000)
 
 
 
 
 
1,475
 
 
 
 
 
 
 
Adjusted weighted average number of ordinary shares
(x 1000)
 
 
 
 
 
180,016
 
 
 
 
 
 
 
Per ordinary share in euro:
 
 
 
 
 
 
- Basic earnings
 
3.07
(0.72)
2.35
-
2.35
- Diluted earnings
 
3.05
(0.72)
2.33
-
2.33
- Dividend paid in the period
 
 
 
 
 
1.00
- Dividend for the year
 
 
 
 
 
1.20
Consolidated income statement for the year ended 31 December 2006
x € million
Notes
Continuing operations
Discontinued
operations
Total
Before
exceptional
items
Exceptional
items
(note 9)
Total
Net sales
 
8,352
-
8,352
28
8,380
Other operating income
4
210
73
283
2
285
 
 
8,562
73
8,635
30
8,665
Own work capitalized
 
39
-
39
-
39
Change in inventories of intermediates and finished goods
 
63
-
63
(5)
58
Raw materials and consumables used
 
(4,536)
-
(4,536)
(18)
(4,554)
Work subcontracted and other external costs
 
(1,481)
-
(1,481)
(4)
(1,485)
Employee benefits costs
5
(1,338)
9
(1,329)
(3)
(1,332)
Depreciation and amortization
6
(440)
(11)
(451)
-
(451)
Other operating costs
7
(34)
(97)
(131)
(1)
(132)
 
 
 
 
 
 
 
Operating profit
 
835
(26)
809
(1)
808
Interest costs
8
(84)
-
(84)
-
(84)
Other financial income and expense
8
3
-
3
-
3
Share of the profit of associates
 
1
4
5
-
5
 
 
 
 
 
 
 
Profit before income tax expense
 
755
(22)
733
(1)
732
Income tax expense
10
(199)
18
(181)
1
(180)
 
 
 
 
 
 
 
Profit for the year
 
556
(4)
552
0
552
 
 
 
 
 
 
 
Of which:
 
 
 
 
 
 
- Profit attributable to minority interests
 
5
-
5
-
5
- Net profit attributable to equity
holders of Royal DSM N.V.
 
551
(4)
547
0
547
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net profit attributable to equity holders
of Royal DSM N.V.
 
551
(4)
547
0
547
Dividend on cumulative preference shares
 
(10)
-
(10)
-
(10)
 
 
 
 
 
 
 
Net profit available for holders of ordinary shares
 
541
(4)
537
0
537
 
 
 
 
 
 
 
Average number of ordinary shares
outstanding (x 1000)
 
 
 
 
 
189,550
Effect of dilution due to share options (x 1000)
 
 
 
 
 
1,200
 
 
 
 
 
 
 
Adjusted weighted average number of ordinary shares
(x 1000)
 
 
 
 
 
190,750
 
 
 
 
 
 
 
Per ordinary share in euro:
 
 
 
 
 
 
- Basic earnings
 
2.85
(0.02)
2.83
-
2.83
- Diluted earnings
 
2.84
(0.02)
2.82
-
2.82
- Dividend paid in the period
 
 
 
 
 
1.04
- Dividend for the year
 
 
 
 
 
1.00
Consolidated balance sheet as at 31 December
x € million
Notes
2007
2006
Assets
 
 
 
 
 
 
 
Non-current assets
 
 
 
Intangible assets
11
1,037
1,008
Property, plant and equipment
12
3,440
3,655
Deferred tax assets
10
346
496
Prepaid pension costs
24
1,169
918
Associates
13
20
26
Other financial assets
14
126
100
 
 
6,138
6,203
Current assets
 
 
 
Inventories
15
1,547
1,515
Trade receivables
16
1,452
1,377
Other receivables
16
235
362
Financial derivatives
23
83
79
Current investments
 
4
3
Cash and cash equivalents
 
369
552
 
 
3,690
3,888
Assets held for sale
 
-
-
 
 
3,690
3,888
 
 
 
 
Total
 
9,828
10,091
 
Equity and liabilities
 
 
 
 
 
 
 
Equity
17
 
 
Royal DSM N.V. Shareholders' equity
 
5,310
5,784
Minority interests
 
73
71
 
 
5,383
5,855
Non-current liabilities
 
 
 
Deferred tax liabilities
10
344
383
Employee-benefits liabilities
24
273
304
Provisions
18
170
188
Borrowings
19
1,560
907
Other non-current liabilities
20
35
44
 
 
2,382
1,826
Current liabilities
 
 
 
Employee-benefits liabilities
24
9
21
Provisions
18
91
127
Borrowings
19
192
607
Financial derivatives
23
42
41
Trade payables
21
1,124
1,091
Other current liabilities
21
605
523
 
 
2,063
2,410
Liabilities held for sale
 
-
-
 
 
2,063
2,410
 
 
 
 
Total
 
9,828
10,091
Consolidated statement of recognized income and expense
x € million
Other
reserves
Retained earnings
Total
Minority
interests
Total
Actuarial
gains
and
losses
Other
2006
 
 
 
 
 
 
Exchange differences on translation of foreign operations
(126)
-
-
(126)
(5)
(131)
Balance of actuarial gains and losses and asset ceiling
-
382
-
382
-
382
Change in hedging reserve
45
-
-
45
-
45
Income tax expense
(10)
(99)
-
(109)
-
(109)
 
 
 
 
 
 
 
Total income and expense directly recognized in equity
(91)
283
-
192
(5)
187
Profit for the year
-
-
547
547
5
552
 
 
 
 
 
 
 
Recognized income and expense for the period
(91)
283
547
739
0
739

 
 
 
 
 
 
2007
 
 
 
 
 
 
Exchange differences on translation of foreign operations
(133)
-
-
(133)
(4)
(137)
Balance of actuarial gains and losses and asset ceiling
-
146
-
146
-
146
Change in fair value reserve
(9)
-
-
(9)
-
(9)
Change in hedging reserve
21
-
-
21
-
21
Income tax expense
(14)
(38)
-
(52)
-
(52)
 
 
 
 
 
 
 
Total income and expense directly recognized in equity
(135)
108
-
(27)
(4)
(31)
Profit for the year
-
-
429
429
5
434
 
 
 
 
 
 
 
Recognized income and expense for the period
(135)
108
429
402
1
403
Consolidated statement of changes in equity (notes 17 and 27)
x € million
Share
capital
Share
premium
Treasury
shares
Other
reserves
Retained earnings
Total
Minority
interests
Total
Equity
Actuarial
gains and
losses
Other
Balance at 1 January 2006
370
545
(376)
85
34
4,843
5,501
67
5,568
 
 
 
 
 
 
 
 
 
 
Dividend paid
-
-
-
-
-
(213)
(213)
(1)
(214)
Changes in option rights
-
-
-
10
-
11
21
-
21
Repurchase of shares
-
-
(318)
-
-
-
(318)
-
(318)
Proceeds from reissued shares
-
-
53
-
-
2
55
-
55
Change in DSM's share in subsidiaries
-
-
-
-
-
-
-
5
5
Capital duty
-
(1)
-
-
-
-
(1)
-
(1)
 
 
 
 
 
 
 
 
 
 
Recognized income and expense for the period
-
-
-
(91)
283
547
739
-
739
Reclassifications
-
-
-
(2)
-
2
-
-
-
 
 
 
 
 
 
 
 
 
 
Balance at 31 December 2006
370
544
(641)
2
317
5,192
5,784
71
5,855
 
 
 
 
 
 
 
 
 
 
Dividend paid
-
-
-
-
-
(193)
(193)
(2)
(195)
Options granted
-
-
-
11
-
-
11
-
11
Options/performance shares exercised/cancelled
-
-
-
(4)
-
13
9
-
9
Repurchase of shares
-
-
(758)
-
-
-
(758)
-
(758)
Cancellation of own shares
(31)
(55)
750
-
-
(664)
-
-
-
Proceeds from reissued shares
-
-
74
-
-
(21)
53
-
53
Change in DSM's share in subsidiaries
-
-
-
-
-
-
-
3
3
 
 
 
 
 
 
 
 
 
 
Recognized income and expense for the period
-
-
-
(135)
108
429
402
1
403
Reclassifications
-
-
-
3
(3)
2
2
-
2
 
 
 
 
 
 
 
 
 
 
Balance at 31 December 2007
339
489
(575)
(123)
422
4,758
5,310
73
5,383
Consolidated cash flow statement (note 26)
x € million
2007
2006
Operating activities
 
 
 
 
Profit for the year
 
434
 
552
Profit attributable to minority interests
 
(5)
 
(5)
Net profit attributable to equity holders of Royal DSM N.V.
 
429
 
547
Adjustments for:
 
 
 
 
- Depreciation, amortization and impairment losses
 
574
 
451
- Gain from disposals
 
(10)
 
(75)
- Change in provisions
 
(55)
 
(83)
- Interest:
 
 
 
 
- Charged to the income statement
75
 
81
 
- Received
36
 
32
 
- Paid
(75)
 
(101)
 
 
 
36
 
12
- Income taxes:
 
 
 
 
- Charged to the income statement
136
 
180
 
- Received/(paid)
5
 
(109)
 
 
 
141
 
71
- Defined benefit plans:
 
 
 
 
- Charged to the income statement
17
 
19
 
- Paid
(156)
 
(144)
 
 
 
(139)
 
(125)
- Other changes
 
8
 
28
Operating cash flow before changes in working capital
 
984
 
826
Changes in operating working capital:
 
 
 
 
- Inventories
(71)
 
(49)
 
- Trade receivables
(102)
 
(77)
 
- Trade payables
49
 
122
 
 
 
(124)
 
(4)
Changes in other working capital
 
(35)
 
(192)
Cash provided by operating activities
 
825
 
630
 
 
 
 
 
Investing activities
 
 
 
 
Capital expenditure for:
 
 
 
 
- Intangible assets
(48)
 
(40)
 
- Property, plant and equipment
(386)
 
(418)
 
Proceeds from disposal of property, plant and equipment
45
 
6
 
Acquisition of subsidiaries and associates
(85)
 
(44)
 
Cash from net investment hedge
26
 
-
 
Proceeds from disposal of subsidiaries and businesses
-
 
135
 
Other financial assets:
 
 
 
 
- Capital payments and acquisitions
(44)
 
(15)
 
- Change in loans granted
92
 
7
 
- Proceeds from disposals
6
 
24
 
Cash used in investing activities
 
(394)
 
(345)
 
 
 
 
 
Financing activities
 
 
 
 
Loans taken up
753
 
30
 
Repayment of loans
(466)
 
(205)
 
Change in debt to credit institutions
(6)
 
28
 
Dividend paid
(193)
 
(213)
 
Repurchase of own shares
(758)
 
(318)
 
Proceeds from reissued shares
53
 
55
 
Change in minority interests
(1)
 
4
 
Capital duty
(1)
 
(1)
 
Cash used in financing activities
 
(619)
 
(620)
 
 
 
 
 
Change in cash and cash equivalents
 
(188)
 
(335)
 
 
 
 
 
Cash and cash equivalents at 1 January
 
552
 
902
Exchange differences relating to cash held
 
(6)
 
(12)
Changes in the scope of the consolidation
 
11
 
(3)
Cash and cash equivalents at 31 December
 
369
 
552