DSM-Firmenich AG · EURONEXT:DSFIR
DSM-Firmenich — Koninklijke DSM — Merger or Acquisition (August 2012)
18 slides from DSM-Firmenich's merger presentation, Aug 8, 2012
Slide 1: The acquisition of Tortuga
The acquisition of Tortuga Strengthening our animal nutrition business Investor Relations 8 August, 2012
Slide 2: Overview
Overview • Tortuga at a glance • Acquisition rationale Slide 1
Slide 3: DSM to acquire Tortuga in an all-cash transaction
DSM to acquire Tortuga in an all-cash transaction Acquisition • Total enterprise value ~ € 465m(*) in cash • 2012 expectations: net sales ~ € 385m and EBITDA ~ € 60m • Value creating acquisition; immediately EPS accretive • Execution of Nutrition cluster strategy “continued value growth” Strategic f
Slide 4: Tortuga, leader in supplements for ruminants
Tortuga, leader in supplements for ruminants Financials • 2012 expectations: Tortuga locations in Brazil Net sales ~ €385m and EBITDA ~ €60m Privately held Brazilian company • Leading company in nutritional supplements with focus on pasture raised beef and dairy cattle Pecém • HQ in Sao Paulo, 1200
Slide 5: Supplements for pasture based ruminants
Supplements for pasture based ruminants Ruminant in feedlot vs pasture based Free Choice Nutritional Supplements • DSM’s current feed activities for ruminants are focusing on ruminants in feedlot • Pasture based ruminants, where Tortuga is focusing on, is a relatively new market to DSM Free Choice N
Slide 6: Tortuga is recognized for its premium brand
Tortuga is recognized for its premium brand Fosbovi, “at the top of the farmer’s mind” in Latin America • Specific supplements for regions (e.g. low mineral content areas) or season (e.g. rain or dry season). • Products for various life stages (e.g. beef calves lactating, growing phase) • Increasing
Slide 7: Supplying highly attractive markets
Supplying highly attractive markets Global supplements market for ruminants Brazil is one of the largest markets • Total size estimated well in access of (Total Cattle numbers in millions) € 4bn globally • Brazil is #2 market • Global market growth ~3% (Brazil: ~4-5%) Organic trace minerals • Curren
Slide 8: Overview
Overview • Tortuga at a glance • Acquisition rationale Slide 7
Slide 9: Total acquisitions now reaching € 2.2bn
Total acquisitions now reaching € 2.2bn* ACQUISITIONS PARTNERSHIPS Nutrition € ~1.8bn Nutrition • Martek (microbial DHA/ARA) • Premix plant Russia • Vitatene (natural carotenoids), Pharma • Premix plants (Rumania, Italia) • DSM Sinochem Pharmaceuticals • Food enzymes business and technology (Vereniu
Slide 10: Nutrition: Continued value growth
Nutrition: Continued value growth Aspiration by 2015 Continuous profit increase • Growth GDP + 2% • EBITDA margin >20 - 23% Strategic progress • Expanded offering through M&A activities • Expanded to 55 premix facilities • Successful process developments; improving cost position • Assets optimizatio
Slide 11: Animal feed: customer value through efficacy
Animal feed: customer value through efficacy Vitamin Macro Premix Protein Supplementary Vitamin Straights Premix Complete Feed forms / supplements Concentrate Feed Animal feed composition Grains Various Protein Components Differentiation by feed (Soya, sunflower meal, etc.) conversion know-how Singl
Slide 12: Next step in Nutrition's value growth strategy
Next step in Nutrition’s value growth strategy Key elements of Nutrition strategy Acquisition of Tortuga • Continued strengthening of the • Strengthens DSM’s presence in core of the business nutritional supplements and additives for ruminants • Establishment of new growth • Strengthens presence in B
Slide 13: The acquisition offers value creating synergies
The acquisition offers value creating synergies Sales synergies • Introducing DSM ingredients into Tortuga’s product range and distribution channels • Leveraging Tortuga’s know-how and strong position in ruminant supplements globally • Introduction of Tortuga's trace mineral products to other market
Slide 14: Tortuga complements value chain presence
Tortuga complements value chain presence DSM production Sourced by DSM • Vitamins • Carotenoids • Di-Calcium Phosphate • Enzymes • Organic trace minerals • Eubiotics Complete feed Active Forms Premix ingredients Supplements Tortuga production Sourced by Tortuga • Di-Calcium Phosphate • Vitamins • Or
Slide 15: Value creating, EPS accretive from the start
Value creating, EPS accretive from the start Financial impact • 2012 expectations: Net sales ~ €385m and EBITDA ~ €60m • Immediately EPS accretive • Predominantly sales synergies, some cost synergies Expectations by 2015 • Sales growth above Nutrition cluster aspiration (GDP +2%) • Increasing EBITDA
Slide 16: Conclusion
Conclusion • Fully supports DSM’s growth strategy “DSM in motion: driving focused growth” • Good strategic fit with Nutrition cluster strategy • Acquisition strengthens and complements DSM’s animal nutrition & health business • Capture value from DSM’s extended value chain presence with a broad port
Slide 17: Disclaimer
Disclaimer • This document may contain forward-looking statements with respect to DSM’s future (financial) performance and position. Such statements are based on current expectations, estimates and projections of DSM and information currently available to the company. • Examples of forward-looking s
Slide 18: Contact
Contact: DSM Investor Relations P.O. Box 6500, 6401 JH Heerlen, The Netherlands (+31) 45 578 2864 e-mail: [email protected] internet: www.dsm.com visiting address: Het Overloon 1, Heerlen, The Netherlands Page
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