DSM workforce at year-end in:

In 2007 the HR Leadership Board was established, a platform of HR representatives of all business clusters. The creation of this Board aims to facilitate the implementation of global human resource strategies and policies, to support the alignment and acceleration of HR initiatives at business and company-wide level, and to further improve the professionalism of the human resource discipline.

In 2007 our new HR strategy, labeled ‘Passion for People’, was actively implemented on many fronts, helping to equip our employees to deal successfully with the challenges of a changing company operating in a fast-moving global marketplace.

The year 2007 saw significant inroads made into the realization of the recruitment and resourcing priorities established in 2006.

Dedicated resourcing and recruitment teams were established in both the United States and China in 2007, with plans to increase this presence in Switzerland, and potentially India, in 2008.

The year 2007 also saw the preparation of the global employer branding initiative in an effort to attract, acquire and retain the talent needed to accomplish key business objectives in an increasingly competitive labor market. The outcome of this initiative will be seen in 2008.

Throughout 2007 DSM also focused on developing its presence in the academic arena as an employer of choice, with the establishment of strategic collaborations with key European business schools. The year 2008 will see the replication of these strategic collaborations with business schools throughout the United States and China to further strengthen the talent pipeline. It will also be the launch year for the new global academic program – designed to boost the talent pipeline to ensure that DSM is appropriately resourced to retain its position as one of the pioneers in the life sciences and materials sciences sectors.

In 2007, 100 academics were hired onto the global internship programs, an increase of 12% compared to 2006.

• Number of hires resulting from internship assignments in 2007: 11
• Number of hires resulting from internship assignments in 2006: 9

An increased focus on succession planning and talent pipelining was enabled via the deployment of several successful Talent Pull programs throughout the year. In 2007, 68 people were hired into key positions across the organization as a result of the Talent Pull program.

An increased focus on innovation, internationalization and diversity in the recruitment processes has enabled DSM to compete for global talent across all the relevant business sectors. Some examples of this focus can be seen in particular amongst executives and academic hires:

• Inflow of total professional hires (non-executives) in 2007 was 608 compared to 420 in 2006.
• Inflow of new academics in 2007 was 175 compared to 128 in 2006.
• Inflow of non-Dutch professionals hires in 2007 was 394 compared to 203 in 2006.
• Inflow of experienced professional hires in 2007 was 432 compared to 310 in 2006.
• Inflow of executives in 2007 was 30 compared to 18 in 2006.
• Inflow of non-Dutch executives in 2007 was 17 compared to 12 in 2006.

DSM has significantly changed over the past 10 years. We have acquired businesses, divested activities, our portfolio has diversified, and we have become more international. In 2007 we embarked on a redesign of our current Management Development process. The outcome will be a new process called Career Management. This will facilitate employees’ career development on an annual basis, offering them a clear sense of ownership of their own careers while providing management with increased transparency concerning career opportunities within DSM. This will help to support the internationalization and diversification of DSM’s activities while simultaneously fostering performance management and succession planning. The Career Management process will be implemented during 2008.

Against the background of developments such as the company’s ongoing expansion and the multinational and changing character of the markets we serve, DSM has devoted considerable attention to strengthening diversity, in terms of both nationality and gender. A broader and more diverse workforce better reflects the company’s presence in the various countries and markets around the world, and increases DSM’s connectivity to its markets and customers. Diverse groups also enjoy a competitive advantage concerning their ability to make effective decisions.

The intensified efforts with regard to stimulating diversity during the year under review have led to the formulation of various new objectives. The inflow of new non-Dutch executives, 55% of the total executives inflow in 2007, should increase to 60% by the end of 2010. In 2007, 6% of DSM executives were female. Over the period 2008-2010 we want the inflow of female executives to be annually 25%. Comparable objectives have also been set with regard to the corporate headquarters. DSM’s task force on diversity is headed by the chairman of the Managing Board.

In 2006 we announced our intention to introduce SAP-HR in the United States and the Netherlands in 2007. The HR Business Support Center in the Netherlands commenced operations on 1 May 2007, while its counterpart in the United States went live with effect from 1 January 2008. The phased inclusion of all legal entities will be finalized in mid-2008 for the United States and with effect from 1 January 2009 for the Netherlands.

Following the one-time sample Working Climate Analysis in 2004, DSM decided in 2007 to annually conduct a global employee engagement survey. An engaged, fully committed workforce is critical for the company in realizing its Vision 2010 ambitions as it delivers a competitive advantage – because engaged and committed employees are highly motivated to give their best every day.In December 2007, the questionnaire was distributed in 18 languages to DSM employees in 44 countries. A total of 11,936 employees responded, 63% of all employees who had been invited to participate. The main aim of the survey was to measure DSM’s engagement index. This index consists of four attributes: commitment, pride, advocacy and satisfaction. Of the 11,936 responses, 62% scored favorably on the DSM engagement index. The outcome of the survey will be assessed by the Managing Board. The Board is convinced that the survey has tremendous value for DSM and will therefore actively stimulate the deployment of the survey’s results in the organization.