03E 11 February 2004
Better-than-expected recovery of Q4 operating profit compared with Q3.
2003 operating profit EUR 294 million, down 23% from 2002 (ongoing activities)
1. Integration and transformation of DSM Nutritional Products fully on schedule, immediate contribution to earnings per share.
2. Q4 operating profit EUR 92 million.
3. Profit on ordinary activities after taxation for 2003: EUR 219 million (-37%); fourth quarter EUR 60 million (-19%).
4. Autonomous volume growth of 2% in 2003 compared with 2002.
5. Dividend unchanged: EUR 1.75 per ordinary share.
|fourth quarter |EUR million |year | |2003 |2002 |+/- | |2003|2002 |+/- | | | | |Ongoing activities: | | | | |1,910|1,454|+31% |Net sales |6,05|5,636|+7% | | | | | |0 | | | | | | | | | | | |233 |193 |+21% |Operating profit plus depreciation |723 |767 |-6% | | | | |& amortization (EBITDA) | | | | | | | | | | | | |98 |102 |-4% |Operating profit before |319 |410 |-22% | | | | |amortization of goodwill (EBITA) | | | | |39 |60 |-35% |- Life Science Products |164 |232 |-29% | |30 |- | | DSM Nutritional Products |30 |- | | |16 |23 |-30% |- Performance Materials |90 |113 |-20% | |15 |31 |-52% |- Industrial Chemicals |60 |77 |-22% | |-2 |-12 | |- Other activities |-25 |-12 | | | | | | | | | | |92 |96 |-4% |Operating profit (EBIT) |294 |383 |-23% | | | | | | | | | | | | |Discontinued activities (DSM | | | | | | | |Petrochemicals): | | | | |- |- | | Net sales |- |1,029| | |- |- | | Operating profit plus |- |125 | | | | | |depreciation & amortization | | | | | | | |(EBITDA) | | | | |- |- | | Operating profit (EBIT) |- |67 | | | | | | | | | | | | | |Total DSM: | | | | |1,910|1,454| |Net sales |6,05|6,665| | | | | | |0 | | | | | | | | | | | |92 |96 | |Operating profit (EBIT) |294 |450 | | | | | | | | | | |60 |74 | |Profit on ordinary activities after|219 |349 | | | | | |taxation | | | | | | | | | | | | |8 |- | |Extraordinary profit after |-94 |840 | | | | | |taxation | | | | | | | | | | | | |76 |73 | |Net profit |139 |1,188| | | | | |Per ordinary share in EUR: | | | | |0.57 |0.70 | |- profit on ordinary activities |2.08|3.38 | | | | | |after taxation | | | | |0.73 |0.69 | |- net earnings |1.24|12.08| | | | | | | | | | |95.8 |96.6 | |Average number of ordinary shares |94.7|96.5 | | | | | |(x million) | | | |
Better-than-expected recovery of Q4 operating profit compared with Q3.
2003 operating profit EUR 294 million, down 23% from 2002 (ongoing activities)
For the full year 2003 DSM's operating profit was EUR 294 million, 23% lower than in 2002 for ongoing activities. This decrease was due in particular to lower margins resulting from on average higher raw material costs. DSM's profit on ordinary activities after taxation was EUR 219 million, down 37% from 2002 (EUR 349 million). Net profit was EUR 139 million, against EUR 1,188 million in 2002. The net profit for 2003 included extraordinary items which on balance amount to an extraordinary charge of EUR 94 million, mainly for restructuring measures, reorganizations and impairments, whereas the 2002 figure had included an extraordinary gain of on balance EUR 840 million, due mainly to the sale of DSM Petrochemicals.
For the fourth quarter of 2003 DSM posted an operating profit of EUR 92 million, which is 4% lower than in Q4 2002. The Q4 2003 profit on ordinary activities after taxation was EUR 60 million, down 19% from the fourth quarter of 2002. Net profit was EUR 76 million, compared with EUR 73 million in the fourth quarter of 2002. Net profit for the fourth quarter included extraordinary gains amounting to EUR 8 million net. This is the balance of a non-recurring tax gain and a provision for restructuring measures in the Industrial Chemicals cluster and at DSM Industrial Services.
Commenting on the results, DSM Managing Board chairman Peter Elverding said: "The fourth quarter produced a better result than we had previously expected, despite the steady weakening of the US dollar throughout the quarter. I am particularly pleased with the fact that the integration of DSM Nutritional Products got off to a good start and that the expected immediate contribution to earnings per share materialized. The year as a whole was unsatisfactory in terms of our financial results. We are carrying out a large number of actions to achieve lasting improvements.
For 2004 the short-term picture is that the weak dollar will be very disadvantageous for us. In addition, some businesses are being confronted with lower margins.
If the global economy truly resumes its long-awaited growth and the average dollar exchange rate is the same as last year, the outlook will be clearly positive."
Dividend
The dividend on ordinary shares proposed for the year 2003 amounts to EUR 1.75 per ordinary share, the same as in 2002. An interim dividend of EUR 0.58 per share having been paid in August 2003, the final dividend will amount to EUR 1.17 per ordinary share. The dividend will be paid out in cash.
Net sales (ongoing activities)
|fourth quarter | |EUR million | | year | |2003 |2002 | | | |2003 |2002 | | | | | | | | | |504 |574 | |Life Science Products | |1,963 |2,168 | |496 |- | | DSM Nutritional Products | |496 |- | |449 |423 | |Performance Materials | |1,774 |1,767 | |353 |352 | |Industrial Chemicals | |1,416 |1,268 | |108 |105 | |Other activities | |401 |433 | |1,910 |1,454 | |Total | |6,050 |5,636 | | | | | | | | |
At EUR 6.1 billion, sales for the full year 2003 were 7% higher than in 2002. Autonomous volume growth amounted to 2%. Selling prices were up 1% on average. Acquisitions, consolidations and divestments resulted in a 10% increase in sales, and lower exchange rates, in particular for the US dollar, had an effect of -6%.
At EUR 1.9 billion, net sales in the fourth quarter of 2003 were 31% higher than in the corresponding quarter of 2002 due to the acquisition of Roche Vitamins & Fine Chemicals. Autonomous volume growth amounted to 3%. Selling prices were down 2% on average. Acquisitions, consolidations and divestments resulted in a 36% increase in sales, while lower exchange rates, in particular for the US dollar, had an effect of -6%.
Business review
Life Science Products cluster
|fourth | |EUR million | | | |quarter | | | |year | |2003 |2002 | | | |2003 |2002 | | | | | | | | | |519 |596 | |Net sales including intra-group | |2,022 |2,240 | | | | |supplies | | | | |76 |98 | |Operating profit plus depreciation | |320 |382 | | | | |and amortization | | | | |39 |60 | |Operating profit | |164 |232 | | | | | | | | |
The Life Science Products cluster's sales and operating profit strongly declined in 2003 compared with 2002. The main causes were very weak market conditions for pharmaceutical ingredients at DSM Pharmaceutical Products and the strong decline of the US dollar.
Sales and operating profit for the fourth quarter also showed a substantial decrease compared with Q4 2002. The effects of the measures initiated by DSM Pharmaceutical Products to further reduce costs and improve the balance between demand and capacity supply will be visible in the course of 2004.
DSM Nutritional Products
|fourth | |EUR million | | | |quarter | | | |year | |2003 |2002 | | | |2003 |2002 | | | | | | | | | |496 |- | |Net sales including intra-group | |496 |- | | | | |supplies | | | | |72 |- | |Operating profit plus depreciation | |72 |- | | | | |and amortization | | | | |30 |- | |Operating profit | |30 |- | | | | | | | | |
DSM Nutritional Products' sales and operating profit were higher than expected. With its operating profit of EUR 30 million, this new business immediately contributed to earnings per share. Although sales were satisfactory, the profits of DSM Nutritional Products were negatively influenced by the weak dollar and one-off cost items.
Performance Materials cluster
|fourth | |EUR million | | | |quarter | | | |year | |2003 |2002 | | | |2003 |2002 | | | | | | | | | |451 |421 | |Net sales including intra-group | |1,777 |1,795 | | | | |supplies | | | | |41 |45 | |Operating profit plus depreciation | |178 |197 | | | | |and amortization | | | | |16 |23 | |Operating profit | |90 |113 | | | | | | | | |
The cluster's sales and operating profit decreased as a result of the strong decline in the dollar exchange rate and weak market conditions for elastomers. The other activities in the cluster on balance posted a higher operating profit.
In spite of the further weakening of the dollar, sales in the fourth quarter were higher than in the corresponding period in 2002. However, operating profit decreased as elastomer margins remained under pressure. Higher results were posted by engineering plastics, glass fibre coatings and resins in particular.
Industrial Chemicals cluster
|fourth | |EUR million | | | |quarter | | | |year | |2003 |2002 | | | |2003 |2002 | | | | | | | | | |380 |378 | |Net sales including intra-group | |1,534 |1,389 | | | | |supplies | | | | |37 |51 | |Operating profit plus depreciation | |141 |158 | | | | |and amortization | | | | |15 |31 | |Operating profit | |60 |77 | | | | | | | | |
Sales of this cluster increased, due in particular to the consolidation of DSM Nanjing Chemical Co., Ltd. (China) and high sales volumes at DSM Agro. Nevertheless, the operating profit decreased on account of the weak dollar and high caprolactam raw material prices.
Sales were virtually unchanged from the fourth quarter of 2002 on balance; the increase in sales resulting from the consolidation of DSM Nanjing Chemical Co., Ltd. was offset by the effects of the weak dollar. Operating profit was halved due to the continuing pressure on margins for caprolactam and lower selling prices for melamine.
Other activities
|fourth | |EUR million | | | |quarter | | | |year | |2003 |2002 | | | |2003 |2002 | | | | | | | | | |108 |105 | |Net sales including intra-group | |401 |437 | | | | |supplies | | | | |7 |-1 | |Operating profit plus depreciation | |12 |30 | | | | |and amortization | | | | |-2 |-12 | |Operating profit | |-25 |-12 | | | | | | | | |
Net sales decreased because ASP production was discontinued at the end of May. The strongly negative result of the captive insurance company depressed the operating profit.
Net profit
Net profit decreased from EUR 1,188 million in 2002 to EUR 139 million in 2003, mainly because of the lower extraordinary profit. Expressed per ordinary share, net profit decreased from EUR 12.08 in 2002 to EUR 1.24 in 2003.
Financial expense amounted to EUR 31 million in 2003, against EUR 14 million in 2002. This increase is attributable mainly to the acquisition of DSM Nutritional Products.
The effective tax rate was 19% (the same as in 2002).
The Result of non-consolidated companies increased from EUR -3 million in 2002 to EUR 5 million in 2003, mainly because of the higher result recorded by Methanor.
The Profit on ordinary activities after taxation decreased by EUR 130 million and amounted to EUR 219 million, the decrease being due mainly to the lower operating profit.
The Extraordinary profit after taxation for the full year 2003 amounted to EUR -94 million (2002: a profit of EUR 840 million). The extraordinary charges related to restructuring measures and reorganizations in the Life Science Products cluster, at DSM Elastomers, in the Industrial Chemicals cluster and at DSM Industrial Services.
In the fourth quarter DSM posted an extraordinary gain of EUR 8 million. This is the balance of a non-recurring tax gain of EUR 41 million and a provision of EUR 33 million net for restructuring measures in the Industrial Chemicals cluster and at DSM Industrial Services.
Minority interests stood at EUR 14 million (2002: EUR -1 million), which related to our activities in North America and China.
Cash flow, capital expenditure and financing
Cash flow (net profit plus depreciation and amortization) for 2003 as a whole amounted to EUR 568 million, which is 65% less than in 2002. The decrease was due in particular to a lower extraordinary profit. Capital expenditure on tangible and intangible fixed assets for ongoing activities amounted to EUR 433 million in 2003 (2002: EUR 463 million) and capital expenditure on acquisitions amounted to EUR 1,561 million (2002: EUR 33 million).
Cash flow in the fourth quarter amounted to EUR 217 million. Capital expenditure (incl. acquisitions) on ongoing activities stood at EUR 178 million, EUR 2 million lower than in the fourth quarter of 2002.
Balance sheet
Compared with the situation at 31 December 2002 the balance sheet at year-end 2003 strongly reflects the acquisition of Roche Vitamins & Fine Chemicals, now DSM Nutritional Products. The cash surplus of EUR 1,038 million changed into a net debt of EUR 671 million.
Workforce
The workforce increased by 7,736 from 18,375 at year-end 2002 to 26,111 at the end of 2003. Acquisitions and consolidations were responsible for an increase of 8,615 (7,510 due to the acquisition of Roche Vitamins & Fine Chemicals and 989 due to the consolidation of DSM Nanjing Chemical Co., Ltd. in China) while restructuring operations and attrition resulted in an autonomous decrease of 879.
Outlook
There seem to be no signs as yet of an improvement in market conditions for a number of important DSM products in the short term. In particular, prices and margins for anti-infectives, caprolactam and melamine are currently under pressure. In line with previous expectations, margins for elastomers and pharma products continue to be under pressure too in the first half of 2004.
Based on the current euro/dollar exchange rate, DSM expects its operating profit for the first quarter of 2004 to be below the level of Q4 2003. The operating profit of Life Science Products is currently expected to be well below the Q4 2003 level, mainly as a result of decreased prices at DSM Anti-Infectives and the impact of the low dollar exchange rate.
In view of the good progress made in the process of integration and transformation of DSM Nutritional Products, DSM maintains the forecast, made in October 2003, that the operating profit of this business for 2004 as a whole will be at least EUR 150 million, despite the further weakening of the dollar relative to the Swiss franc.
In 2004 DSM expects to see the first results of the restructuring measures it has initiated. These measures will lead to personnel reductions. DSM expects capital expenditure on fixed assets in 2004 to remain below the level of depreciation and amortization.
If the positive growth prospects for the world economy materialize and the average US dollar exchange rate in 2004 turns out to be at the same level as in 2003, the outlook for DSM will be clearly positive, particularly in the second half of 2004. However, it is still too early to anticipate this by making a statement about the development of the results for 2004 as a whole.
Heerlen, 11 February 2004
The Managing Board of Directors
Important dates:
Annual General Meeting: Wednesday, 31 March 2004
Publication of first-quarter results: Wednesday, 28 April 2004
Publication of second-quarter results: Tuesday, 27 July 2004
Publication of third-quarter results: Wednesday, 27 October 2004
Annual report 2004: Thursday, 17 February 2005
Annual General Meeting: Wednesday 7 April 2005
For more information
DSM, Corporate Communications,
Tel. +31 (45) 5782421, fax +31 (45) 5740680
E-mail: media.relations@dsm.com
Investors
DSM, Investor Relations
Tel. +31 (45) 5782864, fax +31 (45) 5782595
E-mail: investor.relations@dsm.com
Internet: www.dsm.com
Consolidated statement of income
|fourth | |EUR million | year | |quarter | | | | |2003 |2002 | | |2003 |2002 | | | | | | | | |1,910 |1,454 | |net sales |6,050 |6,665 | | | | | | | | |233 |193 | |operating profit plus depreciation and |723 |892 | | | | |amortization (EBITDA) | | | | | | | | | | |98 |102 | |operating profit before amortization of |319 |477 | | | | |goodwill (EBITA) | | | |-6 |-6 | |amortization of goodwill |-25 |-27 | | | | | | | | |92 |96 | |operating profit (EBIT) |294 |450 | |-22 |4 | |balance of financial income and expense |-31 |-14 | | | | | | | | |70 |100 | |profit on ordinary activities before |263 |436 | | | | |taxation | | | |-10 |-23 | |taxes on profit on ordinary activities |-49 |-84 | |0 |-3 | |profit from non-consolidated companies |5 |-3 | | | | | | | | |60 |74 | |profit on ordinary activities after |219 |349 | | | | |taxation | | | |8 |- | |extraordinary profit or loss after |-94 |840 | | | | |taxation | | | | | | | | | | |68 |74 | |group profit after taxation |125 |1,189 | |8 |-1 | |minority interests' share |14 |-1 | | | | | | | | |76 |73 | |net profit |139 |1,188 | | | | | | | | |76 |73 | |net profit |139 |1,188 | |-5 |-5 | |dividend on cumulative preference shares |-22 |-22 | |71 |68 | |net profit available to holders of |117 |1,166 | | | | |ordinary shares | | | | | | | | | | |217 |170 | |cash flow |568 |1,630 | |141 |97 | |depreciation and amortization, ongoing |429 |384 | | | | |activities | | | |- |- | |depreciation and amortization, |- |58 | | | | |discontinued activities | | | |178 |176 | |capital expenditure (including |1,994 |496 | | | | |acquisitions), ongoing activities | | | |- |- | |capital expenditure, discontinued |- |40 | | | | |activities | | | | | | |per ordinary share in EUR*: | | | |0.57 |0.70 | |- profit on ordinary activities after |2.08 |3.38 | | | | |taxation | | | |0.73 |0.69 | |- net earnings |1.24 |12.08 | |2.20 |1.70 | |- cash flow |5.76 |16.67 | | | | | | | | |95.8 |96.6 | |average number of ordinary shares (x |94.7 |96.5 | | | | |million) | | | |95.8 |96.6 | |number of ordinary shares, end of period |95.8 |96.6 | | | | |(x million) | | | | | | | | | | | | | |workforce |26,111 |18,375 | | | | |of which in the Netherlands |7,996 |8,302 |
* After deduction of dividend on cumulative preference shares.
Consolidated balance sheet
|EUR million |year-end 2003 |year-end 2002 | | | | | | | |fixed assets | | | | | |intangible fixed assets |405 | |462 | | |tangible fixed assets |4,188 | |2,885 | | |financial fixed assets |371 | |292 | | | |--------| |--------| | | |- | |- | | | | |4,964 | |3,639 | |current assets | | | | | |inventories |1,474 | |944 | | |receivables |1,746 | |1,439 | | |cash / marketable securities |1,216 | |2,974 | | | |--------| |--------| | | |- | |- | | | | |4,436 | |5,357 | | | |--------| |--------| | | |- | |- | |Total | |9,400 | |8,996 | | | | | | | |EUR million |year-end 2003 |year-end 2002 | | | | | | | |group equity | | | | | |shareholders' equity |4,918 | |5,142 | | |minority interests' share |43 | |44 | | | |--------| |--------| | | |- | |- | | | | |4,961 | |5,186 | |provisions | |901 | |682 | |long-term liabilities | |1,505 | |1,337 | |current liabilities | | | | | |- interest-bearing |382 | |599 | | |- non-interest-bearing |1,651 | |1,192 | | | |--------| |--------| | | |- | |- | | | | |2,033 | |1,791 | | | |--------| |--------| | | |- | |- | |Total | |9,400 | |8,996 | | | | | | | | | | | | | |capital employed | |6,162 | |4,538 | |group equity / total assets | |0.53 | |0.58 | |net debt | |671 | |-1,038 | |net debt / group equity plus net | |0.12 | |-0.25 | |debt | | | | |
Statement of cash flows
| |year | |EUR million |2003 |2002 | | | | | | | | | | | | | |Cash at beginning of period | |2,974 | |1,148 | | | | | | | |Operating activities: | | | | | |- net profit plus amortization and |568 | |1,630 | | |depreciation | | | | | |- change in working capital |111 | |10 | | |- other changes |-88 | |-982 | | | |-------| |-------| | | |-- | |-- | | |Cash flow provided by operating | |591 | |658 | |activities | | | | | | | | | | | |Investing activities: | | | | | |- capital expenditure |-1,902 | |-536 | | |- divestments |17 | |2,037 | | |- other changes |-4 | |-53 | | | |-------| |-------| | | |-- | |-- | | |Net cash used in investing activities | |-1,889| |1,448 | | | | | | | |Net cash used in financing activities | | | | | | (including dividend) | |-571 | |-280 | |Effects of changes in consolidation and| | | | | |exchange | | | | | | differences | |111 | |- | | | |------| |-------| | | |--- | |-- | |Cash at end of period | |1,216 | |2,974 | | | | | | |
Statement of changes in Shareholders' equity
| |year | |EUR million |2003 | |2002 | | | | | | | | | | | |Shareholders' equity at beginning of period |5,142 | |4,239 | | | | | | |Changes: | | | | |- net profit |139 | |1,188 | |- dividend |-187 | |-191 | |- exchange differences |-155 | |-108 | |- repurchased shares |-112 | |-3 | |- repurchased shares used in acquisition of | | | | | DSM Nutritional Products |92 | |- | |- other |-1 | |17 | | |------| |-------| | |--- | |-- | |Shareholders' equity at end of period |4,918 | |5,142 | | | | | |
---- --
03N 11 februari 2004
Herstel bedrijfsresultaat Q4 ten opzichte van Q3 boven verwachting.
Bedrijfsresultaat 2003 met EUR 294 miljoen 23% onder 2002, op doorlopende activiteiten
1. Integratie en transformatie van DSM Nutritional Products volledig op schema, directe bijdrage aan winst per aandeel.
2. Bedrijfsresultaat vierde kwartaal EUR 92 miljoen.
3. Resultaat uit gewone bedrijfsuitoefening na belastingen 2003: EUR 219 miljoen (-37%); vierde kwartaal EUR 60 miljoen (-19%).
4. Autonome volumegroei 2003 ten opzichte van 2002 bedraagt 2%.
5. Dividend ongewijzigd: EUR 1,75 per gewoon aandeel.
|vierde kwartaal |in EUR miljoen |jaar | |2003 |2002 |+/- | |2003|2002 |+/- | | | | |Doorlopende activiteiten: | | | | |1.910|1.454|+31% |Netto-omzet |6.05|5.636|+7% | | | | | |0 | | | | | | | | | | | |233 |193 |+21% |Bedrijfsresultaat plus |723 |767 |-6% | | | | |afschrijvingen (EBITDA) | | | | | | | | | | | | |98 |102 |-4% |Bedrijfsresultaat vóór afschrijving|319 |410 |-22% | | | | |goodwill (EBITA) | | | | |39 |60 |-35% |- Life Science Products |164 |232 |-29% | |30 |- | | DSM Nutritional Products |30 |- | | |16 |23 |-30% |- Performance Materials |90 |113 |-20% | |15 |31 |-52% |- Industrial Chemicals |60 |77 |-22% | |-2 |-12 | |- Other activities |-25 |-12 | | | | | | | | | | |92 |96 |-4% |Bedrijfsresultaat (EBIT) |294 |383 |-23% | | | | | | | | | | | | |Beëindigde activiteiten (DSM | | | | | | | |Petrochemicals): | | | | |- |- | | Netto-omzet |- |1.029| | |- |- | | Bedrijfsresultaat plus |- |125 | | | | | |afschrijvingen (EBITDA) | | | | |- |- | | Bedrijfsresultaat (EBIT) |- |67 | | | | | | | | | | | | | |Totaal DSM: | | | | |1.910|1.454| |Netto-omzet |6.05|6.665| | | | | | |0 | | | | | | | | | | | |92 |96 | |Bedrijfsresultaat (EBIT) |294 |450 | | | | | | | | | | |60 |74 | |Resultaat uit gewone |219 |349 | | | | | |bedrijfsuitoefening na belastingen | | | | | | | | | | | | |8 |- | |Buitengewoon resultaat na |-94 |840 | | | | | |belastingen | | | | | | | | | | | | |76 |73 | |Nettowinst |139 |1.188| | | | | |Per gewoon aandeel in EUR: | | | | |0,57 |0,70 | |- resultaat uit gewone |2,08|3,38 | | | | | |bedrijfsuitoefening na belastingen | | | | |0,73 |0,69 | |- nettowinst |1,24|12,08| | | | | | | | | | |95,8 |96,6 | |Gemiddeld aantal gewone aandelen (x|94,7|96,5 | | | | | |mln) | | | |
Herstel bedrijfsresultaat Q4 ten opzichte van Q3 boven verwachting.
Bedrijfsresultaat 2003 met EUR 294 miljoen 23% onder 2002, op doorlopende activiteiten
Over het gehele jaar 2003 heeft DSM een bedrijfsresultaat gerealiseerd van EUR 294 miljoen, 23% minder dan in 2002 op doorlopende activiteiten, met name door lagere marges als gevolg van gemiddeld hogere grondstofkosten. Het resultaat uit gewone bedrijfsuitoefening na belastingen was EUR 219 miljoen, 37% minder dan in 2002 (EUR 349 miljoen). De nettowinst bedroeg EUR 139 miljoen ten opzichte van EUR 1.188 miljoen in 2002. In de nettowinst van 2003 is per saldo een buitengewone last begrepen van EUR 94 miljoen, met name voor herstructureringen, reorganisaties en afwaarderingen, terwijl in 2002 per saldo een buitengewone bate werd gerealiseerd van EUR 840 miljoen, met name vanwege de verkoop van DSM Petrochemicals.
DSM behaalde in het vierde kwartaal 2003 een bedrijfsresultaat van EUR 92 miljoen, hetgeen 4% lager was dan in het vierde kwartaal 2002. In het vierde kwartaal 2003 werd een resultaat uit gewone bedrijfsuitoefening na belastingen gerealiseerd van EUR 60 miljoen, hetgeen 19% lager was dan in het vierde kwartaal 2002. De nettowinst bedroeg EUR 76 miljoen tegenover EUR 73 miljoen in het vierde kwartaal 2002. In de nettowinst van het vierde kwartaal is een buitengewone bate begrepen van EUR 8 miljoen netto. Dit is het saldo van een incidentele belastingbate en een herstructureringsvoorziening bij het cluster Industrial Chemicals en DSM Industrial Services.
Peter Elverding, Voorzitter van de Raad van Bestuur van DSM, stelt: "het vierde kwartaal heeft een beter resultaat opgeleverd dan we aanvankelijk verwacht hadden, hoewel de dollar gedurende het kwartaal ten opzichte van de euro steeds zwakker werd. Ik ben vooral verheugd dat de integratie van DSM Nutritional Products voorspoedig van start is gegaan en de verwachte directe bijdrage aan de winst per aandeel is gerealiseerd. Het jaar 2003 als totaal blijft qua resultaat onbevredigend. We hebben veel acties lopen om structurele verbeteringen te realiseren.
Voor 2004 is op korte termijn de zwakke dollar voor ons erg nadelig. Daarnaast staan enkele activiteiten onder druk van gedaalde marges.
Als de wereldeconomie zijn langverwachte groei echt hervat en de dollar op het gemiddelde peil van vorig jaar uitkomt, dan zijn de vooruitzichten duidelijk positief."
Dividend
Per gewoon aandeel wordt over 2003, evenals over 2002, een dividend voorgesteld van EUR 1,75 per gewoon aandeel. Rekening houdend met het in augustus 2003 uitgekeerde interim-dividend van EUR 0,58 per gewoon aandeel bedraagt het slotdividend EUR 1,17 per gewoon aandeel. Het dividend wordt in contanten uitgekeerd.
Netto-omzet (doorlopende activiteiten)
|vierde | |in EUR miljoen | | jaar | |kwartaal | | | | | |2003 |2002 | | | |2003 |2002 | | | | | | | | | |504 |574 | |Life Science Products | |1.963 |2.168 | |496 |- | | DSM Nutritional Products | |496 |- | |449 |423 | |Performance Materials | |1.774 |1.767 | |353 |352 | |Industrial Chemicals | |1.416 |1.268 | |108 |105 | |Other activities | |401 |433 | |1.910 |1.454 | |Totaal | |6.050 |5.636 | | | | | | | | |
Over het gehele jaar 2003 was de omzet met EUR 6,1 miljard 7% hoger dan in het voorgaande jaar. De autonome volumegroei bedroeg 2%. De opbrengstprijzen waren gemiddeld 1% hoger. Acquisities, consolidaties en desinvesteringen hadden een effect van +10% en de lagere koersen, met name van de Amerikaanse dollar, hadden een effect van -6%.
De netto-omzet in het vierde kwartaal 2003 lag met EUR 1,9 miljard 31% boven het niveau van het vierde kwartaal 2002 door de acquisitie van Roche Vitamins & Fine Chemicals. De autonome volumegroei bedroeg 3%. De opbrengstprijzen daalden gemiddeld met 2%. Acquisities, consolidaties en desinvesteringen hadden een effect van +36% en de lagere koersen, met name van de Amerikaanse dollar, hadden een effect van -6%.
Gang van zaken
Life Science Products cluster
|vierde | |in EUR miljoen | | jaar | |kwartaal | | | | | |2003 |2002 | | | |2003 |2002 | | | | | | | | | |519 |596 | |Netto-omzet inclusief interne | |2.022 |2.240 | | | | |leveringen | | | | |76 |98 | |Bedrijfsresultaat plus | |320 |382 | | | | |afschrijvingen | | | | |39 |60 | |Bedrijfsresultaat | |164 |232 | | | | | | | | |
Omzet en bedrijfsresultaat van het cluster Life Science Products liepen in 2003 sterk terug ten opzichte van 2002. Zeer zwakke marktomstandigheden voor farmaceutische ingrediënten bij DSM Pharmaceutical Products en de aanzienlijke daling van de dollar vormden de belangrijkste oorzaken voor deze terugloop.
In het vierde kwartaal waren omzet en bedrijfsresultaat eveneens aanzienlijk lager dan in het vierde kwartaal 2002. De effecten van de bij DSM Pharmaceutical Products in gang gezette maatregelen om de kosten verder te verlagen enerzijds en om vraag en aanbod van de capaciteit meer met elkaar in balans te brengen anderzijds, zullen pas in de loop van 2004 zichtbaar worden.
DSM Nutritional Products
|vierde | |in EUR miljoen | | jaar | |kwartaal | | | | | |2003 |2002 | | | |2003 |2002 | | | | | | | | | |496 |- | |Netto-omzet inclusief interne | |496 |- | | | | |leveringen | | | | |72 |- | |Bedrijfsresultaat plus | |72 |- | | | | |afschrijvingen | | | | |30 |- | |Bedrijfsresultaat | |30 |- | | | | | | | | |
Omzet en bedrijfsresultaat van DSM Nutritional Products lagen boven het verwachte niveau. Met het gerealiseerde bedrijfsresultaat van EUR 30 miljoen droegen deze nieuwe activiteiten direct bij aan de winst per aandeel. Hoewel de afzet bevredigend was, werd het resultaat van DSM Nutritional Products negatief beïnvloed door de zwakke dollar en eenmalige kosten.
Performance Materials cluster
|vierde | |in EUR miljoen | | jaar | |kwartaal | | | | | |2003 |2002 | | | |2003 |2002 | | | | | | | | | |451 |421 | |Netto-omzet inclusief interne | |1.777 |1.795 | | | | |leveringen | | | | |41 |45 | |Bedrijfsresultaat plus | |178 |197 | | | | |afschrijvingen | | | | |16 |23 | |Bedrijfsresultaat | |90 |113 | | | | | | | | |
Omzet en bedrijfsresultaat van het cluster liepen terug als gevolg van de sterk gedaalde dollar en zwakke marktomstandigheden voor elastomeren. De overige activiteiten in het cluster leverden per saldo een hoger bedrijfsresultaat.
In het vierde kwartaal was de omzet hoger dan in het vergelijkbare kwartaal van 2002, ondanks de verdere verzwakking van de dollar. Het bedrijfsresultaat was echter lager door de aanhoudende margedruk voor elastomeren. Met name engineering plastics, glasvezelcoatings en harsen lieten hogere resultaten zien.
Industrial Chemicals cluster
|vierde | |in EUR miljoen | | jaar | |kwartaal | | | | | |2003 |2002 | | | |2003 |2002 | | | | | | | | | |380 |378 | |Netto-omzet inclusief interne | |1.534 |1.389 | | | | |leveringen | | | | |37 |51 | |Bedrijfsresultaat plus | |141 |158 | | | | |afschrijvingen | | | | |15 |31 | |Bedrijfsresultaat | |60 |77 | | | | | | | | |
De clusteromzet nam toe door met name de consolidatie van DSM Nanjing Chemical Co., Ltd. (China) en de hoge afzet van DSM Agro. Het bedrijfsresultaat liep echter terug door effecten van de dollar en door hoge grondstofprijzen voor caprolactam.
De omzet bleef in het vierde kwartaal per saldo vrijwel gelijk; de hogere omzet door de consolidatie van DSM Nanjing Chemical Co., Ltd. werd ongedaan gemaakt door de zwakke dollar. Het bedrijfsresultaat halveerde door de aanhoudende margedruk voor caprolactam en de lagere opbrengstprijzen voor melamine.
Other activities
|vierde | |in EUR miljoen | | jaar | |kwartaal | | | | | |2003 |2002 | | | |2003 |2002 | | | | | | | | | |108 |105 | |Netto-omzet inclusief interne | |401 |437 | | | | |leveringen | | | | |7 |-1 | |Bedrijfsresultaat plus | |12 |30 | | | | |afschrijvingen | | | | |-2 |-12 | |Bedrijfsresultaat | |-25 |-12 | | | | | | | | |
De netto-omzet nam af door de beëindiging van de ASP-productie eind mei. Het bedrijfsresultaat was lager door het fors negatieve resultaat van de interne verzekeringsmaatschappij.
Nettowinst
De Nettowinst nam, vooral als gevolg van het lagere buitengewone resultaat, af van EUR 1.188 miljoen in 2002 tot EUR 139 miljoen in 2003. Uitgedrukt per gewoon aandeel is dit resultaat gedaald van EUR 12,08 in 2002 tot EUR 1,24 in 2003.
De Financiële lasten bedroegen in 2003 EUR 31 miljoen tegenover EUR 14 miljoen in 2002. Deze toename is vooral het gevolg van de acquisitie van DSM Nutritional Products.
De belastingdruk was 19% (2002: eveneens 19%).
Het Resultaat niet-geconsolideerde deelnemingen nam toe van EUR 3 miljoen negatief in 2002 tot EUR 5 miljoen in 2003, met name door het hogere resultaat van Methanor.
Het Resultaat uit gewone bedrijfsuitoefening na belastingen is met EUR 130 miljoen gedaald tot EUR 219 miljoen, met name veroorzaakt door het lagere bedrijfsresultaat.
Het Buitengewoon resultaat na belastingen over geheel 2003 bedroeg per saldo
EUR 94 miljoen negatief (2002: een bate van EUR 840 miljoen). De buitengewone lasten betroffen herstructureringen en reorganisaties binnen het cluster Life Science Products, DSM Elastomers, het cluster Industrial Chemicals en DSM Industrial Services.
In het vierde kwartaal werd een buitengewone bate gerealiseerd van EUR 8 miljoen netto. Dit is het saldo van een incidentele belastingbate (van EUR 41 miljoen) en een herstructureringsvoorziening (van EUR 33 miljoen netto) bij het cluster Industrial Chemicals en DSM Industrial Services.
Het Belang van derden bedroeg EUR 14 miljoen (2002: EUR 1 miljoen negatief) en had te maken met onze activiteiten in Noord-Amerika en China.
Cashflow, investeringen en financiering
De cashflow (nettowinst plus afschrijvingen) over geheel 2003 bedroeg EUR 568 miljoen, hetgeen 65% minder is dan in 2002, vooral als gevolg van een lager buitengewoon resultaat. Over geheel 2003 bedroegen de investeringen van de doorlopende activiteiten in (im)materiële vaste activa EUR 433 miljoen (2002: EUR 463 miljoen) en in acquisities EUR 1.561 miljoen (2002: EUR 33 miljoen).
De cashflow in het vierde kwartaal bedroeg EUR 217 miljoen. De investeringen
(incl. acquisities) in de doorlopende activiteiten waren EUR 178 miljoen, EUR 2 miljoen lager dan in het vierde kwartaal 2002.
Balans
De balans ultimo 2003 in vergelijking met ultimo 2002 reflecteert in sterke mate de acquisitie van Roche Vitamins & Fine Chemicals, nu DSM Nutritional Products. Het cash-surplus van EUR 1.038 miljoen veranderde in een nettoschuld van EUR 671 miljoen.
Personeel
Het personeelsbestand nam toe met 7.736 personen van 18.375 ultimo 2002 naar 26.111 ultimo 2003. Het bestand nam toe met 8.615 personen als gevolg van acquisities en consolidaties (met name 7.510 vanwege de aankoop van Roche Vitamins & Fine Chemicals en 989 vanwege de consolidatie van DSM Nanjing Chemical Co., Ltd. in China) en nam autonoom af met 879 personen door herstructureringen en natuurlijk verloop.
Verwachting
De marktomstandigheden voor een aantal belangrijke DSM-producten lijken op korte termijn nog niet te verbeteren. Er is op dit moment met name sprake van druk op de prijzen en marges voor anti-infectives, caprolactam en melamine. Conform eerdere verwachtingen blijven ook de marges in elastomeren en pharma products in de eerste helft van 2004 nog onder druk staan.
Voor het eerste kwartaal van 2004 verwacht DSM, uitgaande van de huidige
euro-/dollarkoers, een bedrijfsresultaat dat onder het niveau van het vierde kwartaal 2003 ligt. Het bedrijfsresultaat bij het cluster Life Science Products zal naar huidige verwachting, vooral als gevolg van gedaalde prijzen bij DSM Anti-Infectives en het effect van de lage dollarkoers, ruim onder het niveau van het vierde kwartaal 2003 liggen.
Gezien het voorspoedig verloop van het integratie- en transformatieproces van DSM Nutritional Products houdt DSM vast aan de in oktober 2003 uitgesproken verwachting dat deze activiteiten over 2004 een bedrijfsresultaat realiseren van tenminste
EUR 150 miljoen, ondanks de verder verzwakte dollar ten opzichte van de Zwitserse frank.
DSM verwacht in de loop van het jaar 2004 positieve resultaateffecten van de aangezette herstructureringen te gaan zien. Het personeelsbestand zal als gevolg daarvan teruglopen. DSM verwacht dat de investeringen in vaste activa in 2004 onder het niveau van de afschrijvingen blijven.
Als de positieve groeivooruitzichten voor de wereldeconomie realiteit worden en over 2004 de koers van de Amerikaanse dollar ten opzichte van de euro op het gemiddeld niveau van 2003 uitkomt, dan zijn de vooruitzichten voor DSM met name in de tweede helft van 2004 duidelijk positief. Het is echter nog te vroeg hierop vooruit te lopen met een uitspraak over de resultaatontwikkeling voor geheel 2004.
Heerlen, 11 februari 2004
De Raad van Bestuur
Relevante data:
Algemene Vergadering van Aandeelhouders: woensdag 31 maart 2004
Bericht over het eerste kwartaal: woensdag 28 april 2004
Bericht over het tweede kwartaal: dinsdag 27 juli 2004
Bericht over het derde kwartaal: woensdag 27 oktober 2004
Jaarverslag 2004: donderdag 17 februari 2005
Algemene Vergadering van Aandeelhouders: woensdag 7 april 2005
Voor meer informatie
DSM, Corporate Communications,
Tel. +31 (45) 5782421, fax +31 (45) 5740680
E-mail: media.relations@dsm.com
Beleggers
DSM, Investor Relations
Tel. +31 (45) 5782864, fax +31 (45) 5782595
E-mail: investor.relations@dsm.com
Internet: www.dsm.com
Geconsolideerd resultatenoverzicht
|vierde | |in EUR miljoen | jaar | |kwartaal | | | | |2003 |2002 | | |2003 |2002 | | | | | | | | |1.910 |1.454 | |netto-omzet |6.050 |6.665 | | | | | | | | |233 |193 | |bedrijfsresultaat plus afschrijvingen |723 |892 | | | | |(EBITDA) | | | | | | | | | | |98 |102 | |bedrijfsresultaat vóór afschrijving |319 |477 | | | | |goodwill (EBITA) | | | |-6 |-6 | |afschrijving goodwill |-25 |-27 | | | | | | | | |92 |96 | |bedrijfsresultaat (EBIT) |294 |450 | |-22 |4 | |financiële baten en lasten |-31 |-14 | | | | | | | | |70 |100 | |resultaat uit gewone bedrijfsuitoefening |263 |436 | | | | | vóór belastingen | | | |-10 |-23 | |belastingen resultaat uit gewone |-49 |-84 | | | | |bedrijfsuitoefening | | | |0 |-3 | |resultaat niet-geconsolideerde |5 |-3 | | | | |deelnemingen | | | | | | | | | | |60 |74 | |resultaat uit gewone bedrijfsuitoefening |219 |349 | | | | | na belastingen | | | |8 |- | |buitengewoon resultaat na belastingen |-94 |840 | | | | | | | | |68 |74 | |groepsresultaat na belastingen |125 |1.189 | |8 |-1 | |belang van derden |14 |-1 | | | | | | | | |76 |73 | |nettowinst |139 |1.188 | | | | | | | | |76 |73 | |nettowinst |139 |1.188 | |-5 |-5 | |dividend op cumulatief preferente |-22 |-22 | | | | |aandelen | | | |71 |68 | |nettowinst toekomend aan de houders van |117 |1.166 | | | | | gewone aandelen | | | | | | | | | | |217 |170 | |cashflow |568 |1.630 | |141 |97 | |afschrijvingen, doorlopende activiteiten |429 |384 | |- |- | |afschrijvingen, beëindigde activiteiten |- |58 | |178 |176 | |investeringen (inclusief acquisities), |1.994 |496 | | | | |doorlopende activiteiten | | | |- |- | |investeringen, beëindigde activiteiten |- |40 | | | | |per gewoon aandeel in EUR*: | | | |0,57 |0,70 | |- resultaat uit gewone |2,08 |3,38 | | | | |bedrijfsuitoefening na belastingen | | | |0,73 |0,69 | |- nettowinst |1,24 |12,08 | |2,20 |1,70 | |- cashflow |5,76 |16,67 | | | | | | | | |95,8 |96,6 | |aantal gewone aandelen, gemiddeld periode|94,7 |96,5 | | | | |(x mln) | | | |95,8 |96,6 | |aantal gewone aandelen, ultimo periode (x|95,8 |96,6 | | | | |mln) | | | | | | | | | | | | | |personeel |26.111 |18.375 | | | | |waarvan in Nederland |7.996 |8.302 |
* Na aftrek dividend op cumulatief preferente aandelen.
Geconsolideerde balans
|in EUR miljoen |ultimo 2003 |ultimo 2002 | | | | | | | |vaste activa | | | | | |immateriële vaste activa |405 | |462 | | |materiële vaste activa |4.188 | |2.885 | | |financiële vaste activa |371 | |292 | | | |--------| |--------| | | |- | |- | | | | |4.964 | |3.639 | |vlottende activa | | | | | |voorraden |1.474 | |944 | | |vorderingen |1.746 | |1.439 | | |liquide / uitgezette middelen |1.216 | |2.974 | | | |--------| |--------| | | |- | |- | | | | |4.436 | |5.357 | | | |--------| |--------| | | |- | |- | |Totaal | |9.400 | |8.996 | | | | | | | | | | | | | |in EUR miljoen |ultimo 2003 |ultimo 2002 | | | | | | | |groepsvermogen | | | | | |eigen vermogen |4.918 | |5.142 | | |belang van derden |43 | |44 | | | |--------| |--------| | | |- | |- | | | | |4.961 | |5.186 | |voorzieningen | |901 | |682 | |langlopende schulden | |1.505 | |1.337 | |kortlopende schulden | | | | | |- rentedragend |382 | |599 | | |- niet-rentedragend |1.651 | |1.192 | | | |--------| |--------| | | |- | |- | | | | |2.033 | |1.791 | | | |--------| |--------| | | |- | |- | |Totaal | |9.400 | |8.996 | | | | | | | | | | | | | |geïnvesteerd vermogen | |6.162 | |4.538 | |groepsvermogen / totaal vermogen | |0,53 | |0,58 | |nettoschuld | |671 | |-1.038 | |nettoschuld / groepsvermogen plus| |0,12 | |-0,25 | |nettoschuld | | | | |
Kasstroomoverzicht
| |jaar | |in EUR miljoen |2003 |2002 | | | | | | | | | | | | | |Liquide middelen begin periode | |2.974 | |1.148 | | | | | | | |Operationele activiteiten: | | | | | |- nettowinst plus afschrijvingen |568 | |1.630 | | |- mutatie bedrijfskapitaal |111 | |10 | | |- overige mutaties |-88 | |-982 | | | |-------| |-------| | | |-- | |-- | | |Kasstroom operationele activiteiten | |591 | |658 | | | | | | | |Investeringsactiviteiten: | | | | | |- investeringen |-1.902 | |-536 | | |- desinvesteringen |17 | |2.037 | | |- overige mutaties |-4 | |-53 | | | |-------| |-------| | | |-- | |-- | | |Kasstroom investeringsactiviteiten | |-1.889| |1.448 | | | | | | | |Kasstroom financieringsactiviteiten | |-571 | |-280 | |(inclusief dividend) | | | | | |Effecten wijzigingen in de | | | | | |consolidatie | | | | | | en koersverschillen | |111 | |- | | | |------| |-------| | | |--- | |-- | |Liquide middelen einde periode | |1.216 | |2.974 | | | | | | |
Mutatieoverzicht Eigen vermogen
| |jaar | |in EUR miljoen |2003 | |2002 | | | | | | | | | | | |Stand begin periode |5.142 | |4.239 | | | | | | |Mutaties: | | | | |- nettoresultaat |139 | |1.188 | |- dividend |-187 | |-191 | |- koersverschillen |-155 | |-108 | |- inkoop eigen aandelen |-112 | |-3 | |- eigen aandelen aangewend voor acquisitie | | | | | DSM Nutritional Products |92 | |- | |- overig |-1 | |17 | | |------| |-------| | |--- | |-- | |Stand einde periode |4.918 | |5.142 | | | | | |
---- --