DSM in motion: Sustainability as business growth driver

Fernando CisnerosDSM Nutritional ProductsKaiseraugst, Switzerland

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Global ShiftsGlobal Shifts• Demographic shifts and urbanization • Growth in emerging economies (incl. innovation)• Increased resource consumption and efficiency• High impact of new technologies

Health & WellnessHealth & Wellness•Aging population (globally)•Nutrition security and healthy foods•Cost pressure on increasing healthcare demands•Safer & healthier products

Business impact of the societal trends increasing

Climate & EnergyClimate & Energy•Driving sustainable value chains•Growing focus on renewable energy sources• Increasing demand for energy-efficient products

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2

Opportunity-seeking

Risk-reduction

Process Product

Step change in Triple P: market-drivensecuring value creating value

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Sustainability at DSM

“We cannot be successful nor can we call ourselves successful in a society that fails”Feike Sijbesma,Chairman of the Managing Board

By sustainability DSM means “meeting the needs of the present generation without compromising the ability of future generations to meet their own needs".

DSM believes that achieving sustainability is creating value by simultaneously pursuing economic performance, ecological and social benefits.

Status update sustainability aspirations

Sustainability aspirations 2011 - 2015 H1 2012

Dow Jones Sustainability Index top ranking (“Gold”) No 1 Chemical sector (2011)

ECO+ (innovation pipeline) at least 80% of pipeline is ECO+ 65%ECO+ (running business) from ~34% towards 50% 42%

Energy efficiency 20% improvement from 2008 till 2020 14% improvement*

Greenhouse Gas Emissions 25% reduction from 2008 till 2020 Only FY**Engagement Survey towards High Performance Norm 71% Favorable***Diversity & People+ to be updated in 2011 Updated****

* Cumulative improvement from 2008 till H1 2012 ** GHG only report FY. Cumulative improvement from 2008 till FY 2011 8% increase. FY 2012 will depend strongly on

production volumes and N2O abatement at DFI Nanjing*** Measured end 2011, 8% below High Performance Norm**** People+ refers to DSM product solutions that create a measurable better impact on people (health, well-being etc)

than mainstream competing solutions. The framework is established, people+ measurement is under development

Strategy is as robust as its implementation..

(1) Eco+

(2) People+

ExamplesExamples ofof SustainabilitySustainability in in actionaction

1000 30002000

Foss

il re

sour

ce u

se

Living off the land Living off the landA briefFossil

momentin history

Renewability:From the Fossil-Age to the Bio-Age

The Process: From biomass to cellulosic bio-ethanol

Slide 8

Life and Sight is a nutrition think tankand humanitarian initiative which is committed to fighting micronutrient

malnutrition. Sight and Life was founded in 1986 to combat vitamin A Deficiency in the developing world.

However, we have evolved considerablyover time to reflect the changing

world in whichwe operate.

www.sightandlife.org

NutriRice®

Rice enriched with vitamins and minerals recomposed by extruding rice flour, protecting the included

vitamins and minerals.

Effective and accessible, NutriRice ® helps reduce hidden hunger and

improve the health of people whose diet is based on rice

DSM: Sustainability in action

MixMeTM micronutrientes sacketts

MixMe is a new concept of foodfortification, developed initially for the

World Food Program.

The vitamin mix is added to the water ormeals.

Enzyme Technology for feed

The available DSM feed enzymetechnology for layer feed has the potential

to save the equivalent to 1.2 millionhectares or 2.6 million soccer fields of

wheat

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o Reached over 10 million WFP beneficiaries with improved nutrition

o Carried out 26 nutrition-related projects in 15 different countries

o Innovated and improved 8 new products such as food supplements

o Raised the profile of nutrition on the global agenda (i.e. international advocacy events in Davos and Brussels)

o Published 26 peer-reviewed papers and presented results at major public and academic conferences

o Many DSM volunteers to work on WFP projects