DSM Annual report 2007 - Review of business

Review of business

In 2007 DSM’s activities were grouped into four clusters: Nutrition, Pharma, Performance Materials and Industrial Chemicals. In light of the acceleration of Vision 2010 – Building on Strengths, DSM has regrouped its activities with effect from 1 January 2008. There are now five clusters: Nutrition, Pharma, Performance Materials, Polymer Intermediates and Base Chemicals and Materials.

Net sales and supplies

x € million	Net sales		Supplies
	2007	2006	2007	2006

Nutrition	2,543	2,407	2,590	2,463
Pharma	981	916	1,031	967
Performance Materials	2,895	2,753	2,901	2,759
Industrial Chemicals	1,937	1,872	2,205	2,135
Other activities	401	404	455	422
Intra-group supplies	--	-	(425)	(394)

Total, continuing operations	8,757	8,352	8,757	8,352
Discontinued operations	-	28	-	28

Total DSM	8,757	8,380	8,757	8,380

EBITDA / net sales

in %	2007	2006

Nutrition	15.9	19.3
Pharma	17.7	15.9
Performance Materials	14.3	15.6
Industrial Chemicals	15.1	14.4

Operating profit plus depreciation and amortization (EBITDA)

x € million	2007	2006

Nutrition	405	464
Pharma	174	146
Performance Materials	415	429
Industrial Chemicals	292	269
Other activities	(39)	(33)

Total, continuing operations	1,247	1,275
Discontinued operations	-	(1)

Total DSM	1,247	1,274

Operating profit (EBIT)

x € million	2007	2006

Nutrition	264	314
Pharma	93	65
Performance Materials	321	329
Industrial Chemicals	225	196
Other activities	(80)	(69)

Total, continuing operations	823	835
Discontinued operations	-	(1)

Total DSM	823	834

Capital employed at 31 December

x € million	2007	2006

Nutrition	2,067	2,159
Pharma	1,095	1,302
Performance Materials	1,815	1,697
Industrial Chemicals	714	745
Other activities	291	407

Total, continuing operations	5,982	6,310
Discontinued operations	-	(7)

Total DSM	5,982	6,303

R&D expenditure

	x € million		as % of net sales
	2007	2006	2007	2006

Nutrition	136	140	5.3	5.8
Pharma	68	59	6.9	6.4
Performance Materials	131	115	4.5	4.2
Industrial Chemicals	23	21	1.2	1.1
Other activities	14	12	3.5	3.0

Total, continuing operations	372	347	4.2	4.2
Discontinued operations	-	-

Total DSM	372	347

Capital expenditure and acquisitions

x € million	2007	2006

Nutrition	145	113
Pharma	65	146
Performance Materials	214	126
Industrial Chemicals	90	68
Other activities	54	48

Total, continuing operations	568	501
Discontinued operations	-	-

Total DSM	568	501

Workforce (year-end)

	2007	2006

Nutrition	7,782	7,711
Pharma	5,073	4,732
Performance Materials	5,139	4,664
Industrial Chemicals	2,134	2,183
Other activities	3,126	2,860

Total, continuing operations	23,254	22,150
Discontinued operations	-	6

Total DSM	23,254	22,156