Securing the understanding and support of our stakeholders

18 October 2012, EACD Meeting, Amsterdam

@JosvHaastrechtDirector Global Branding and Integrated Communications

Aligning strategy, values, culture and identity throughcorporate branding

• DSM: Who we are• Creating share value• Case: Nutritional Challenge – 360 degrees DSM• Closing the loop

Agenda

DSMs global presence 170+ locations, 22,000 employees, appr € 9 billion sales

Latin America: 15 locations1,000 employees

North America: 33 locations4,000 employees

Europe: 64 locations13,000 employees

India: 8 locations700 employees

China: 31 locations3,000 employees

39%

6%36%

19%

High GrowthEconomies

Other

North America

Western Europe

Sales by region – 2011

Key activity areas

NutritionWorld’s leading producer of vitamins and nutritional ingredients meeting the growing need for more nutritious and more sustainable food and animal feed

MaterialsEnabling lighter, stronger, more advanced and more sustainable performance materials

HealthAdvanced, cost-effective health and medical innovations, and healthier food and beverages, to meet the needs of a growing and ageing global population

Global societal trends drive DSM’s markets

Population growth

Wealth

Resources constraints

Sustainability

UrbanizationHealthcare costs Energy security

Food security

Ageing population

MaterialsNutritionHealth

Global shiftsHealth & WellnessHealth & Wellness Climate & Energy

Mission

Our purpose is to create brighter lives for people today and generations to come.

We connect our unique competences in Life Sciences and Materials Sciences to create solutions that nourish, protect and improve performance.

Sustainability: core value

People: improving people’s lives through DSM’s activities, products and innovations (People+). Respect for people and recognition of their fundamental rights.

Planet: improving the environmental footprint through DSM’s activities, products and innovations (ECO+) (more value with less environmental impact)

Profit: creating profitable business and value for DSM’s shareholders while meeting DSM’s objectives to provide solutions to global societal needs.

StrategyDSM in motion: driving focused growth

Culture

DSM is a science-based company committed to creating solutions with its partners and customers to bring healthier, better performing and more sustainable products to the lives of people today and for generations to come.

Brand Promise

Mission

Core Value

Strategy

Culture

Brand Promise

One DSM in a nutshellOur purpose is to create brighter lives for people today and generations to come.We connect our unique competences in Life Sciences and Materials Sciences to create solutions that nourish, protect and improve performance.

DSM activities should contribute to a more sustainable world – People. Planet, Profit

Driving focused growth in Life Sciences and Materials Sciences meeting societal needs

External Focus - Accountability for Performance – Collaboration and Speed - Inclusion and Diversity

12

Step change in sustainability: market-driven focus

Opportunity-seeking

Risk-reduction

Process Product

Creating ValueMeeting the challenges

of global society ‘doing well by doing

good’

Securing ValueRobust DSM

systems and processes

Clear sustainability aspirations support strategy

Sustainability aspirations 2011 - 2015

Dow Jones Sustainability Index Top ranking (“Gold”)

ECO+ (innovation pipeline) At least 80% of pipeline is ECO+

ECO+ (running business) from ~34% towards 50%

Energy efficiency 20% improvement from 2008 till 2020

Greenhouse gas emissions 25% reduction from 2008 till 2020

Engagement Survey towards High Performance Norm

• DSM: Who we are• Creating shared value• Case: Nutritional Challenge – 360 degrees DSM• Closing the loop

Agenda

Creating shared value for our key stakeholders

Page 15

EMPLOYEES

CUSTOMERS

AND PROSPECTS

SHAREHOLDERS AND

INVESTORS

POTENTIAL EMPLOYEES

KEY OPINION LEADERS

LOCAL COMMUNITIE

S

UNIVERSITIES AND RESEARCH

INSTITUTES

SUPPLIERS

NGOs

Delivering differentiation to provide better solutions to the challenges facing society

Sustainable growth and profitability

More engagement and reward working at a company enabling a contribution to a better world

Solving key societal challenges

GOVERNMENTS

• CEO and Board ultimate owner of the brand, mission, values, strategy and culture.

• Communication and Branding fully integrated

• CorpComs directs Communications and Branding

• Regional and Business Group coms heads co-responsible for Communications and Branding

• Cross-functional approach with key functional disciplines including HR, Marketing, IR, Public Affairs et cetera.

Organizational alignment critical

Brand Promise, Mission, Core Value, Strategy, Culture

Integrated and cross-functional Communications

Corporate messaging, visual identity and behavorial framework

EmployeesShareholders Communities

Marketing/BGs/CC IR/BGs/CC PA/BGs/HR/CCHR/BGs/CC

StrategicPriorities

StrategicPriorities

StrategicPriorities

Strategic Priorities

Customers

Communicationpriorities

Communicationpriorities

Communicationpriorities

Communicationpriorities

Tacticalinitiatives

Tacticalinitiatives

Tacticalinitiatives

Tacticalinitiatives

• DSM: Who we are• Creating shared value• Case: Nutritional Challenge -360 degrees

DSM• Closing the loop

Agenda

Page 19

From 7 billion to 9 billion

• 1 out of 7 people go to bed hungry

• 2 billion people live with “hidden hunger” (micronutrient

malnutrition)

• Rise of nutrition-related diseases: 366 mio people with diabetes

• 1.6 billion people are overweight and obese, increasingly also in

developing world

Nutrional challenge - context

Resource-constrained world

DSM is helping to address this global challenge

with nutritional solutions for the developed and

developing world.

Page 21

• Create leadership position in Nutrition amongst key stakeholders

(customers, key influencers, NGOs, media, governments,

employees) that help us to drive reputation and favorably influence

the political, social and business world in which we operate.

• CSFs:

– Establishing supportive stakeholder management by increasing

awareness, understanding, engagement and ultimately

endorsement

– Defining and driving the agenda

– Organizational alignment and integrating communications &

branding approach (360 degrees)

– Repurposing content

Stakeholder approach & Critical Success Factors

Page

Strategic and Tactical Strategic and Tactical ExamplesExamples

A number of strategic and tactical examples and

initiatives to increase supportive stakeholder

engagement

strategy, alliances& partnerships

360 degree approach and manifestation

Page

Driving agenda essential

Page

Public-private partnerships for the greater good

Community engagement: School meals program at schools made with DSM composite materials

communicationsstrategy, alliances& partnerships

Page

Nutrition media coverage

Page

Bright stories library

Page

Active dialogue via social Media (owned + earned)

Facebook/Google+ Twitter/Weibo Linkedin

Youtube/Flickr/SlideShare

External BlogsDSM website

Yammer

Intranet

Externally Internally

Page

Third party endorsement

“DSM’s actions are excellent examples of how the private sectorcan be a force for good in bringing about better quality of lifesustainable growth and a low-carbon prosperity for all”

Ban Ki-Moon, UN Secretary-General“A lot of companies’ CSR initiatives have nothing to do with their core business. DSM, by contrast, has used its savoir faire, its experience, and mobilized staff to improve the nutrients in the food given in situations of famine or hunger. If we could clone Feike Sijbesma, the CEO, the world would be a better place”

Pamela Hartigan, University of Oxford

marketing and communications

Products & services

strategy, alliances& partnerships

Innovative approches to reduce vitamin A deficiency in India.

Succesful innovations addressing malnutrition

Slide 34

Increase micronutrient content in WFP food basket, e.g. MixMe™.

Lipid-based complementary food supplements withmicronutrients/enzymes.

Slide 35

Health benefit platforms drive growth

marketing and communications

products & services people, culture& behaviors

strategy, alliances& partnerships

Global Bright Experience: DSM/WFP Program – awareness and fundraising

Global World Food Program assignments

“We cannot be successful nor can we call ourselves successful in a society that fails”

Feike Sijbesma,CEO/Chairman of the Managing Board

• DSM: Who we are• Creating shared value• Case: Nutritional Challenge – 360 degrees DSM• Closing the loop

Agenda

From responsibility to a business driver

Sustainability highlights 2011:

• Eco+ sales ~41% of running business• Eco+ innovations 94% of pipeline

clearly above aspiration level > 80%• Energy efficiency of 13% well on

track to reach 20% improvement by 2020 versus 2008

• 10 million beneficiaries reached by WFP

Sustainability external recognition

• Leader Dow Jones Sustainability Index (sector leader 6 out of 9 years)

• 2010 World Business and Development Award from United Nations

0%

25%

50%

CMD2010

FY2010

FY2011

Target2015

ECO+ % of running business on track

Employee recognition and performance• Accountability for Performance/Acting Responsibly

standard behavior

• Bright Science Awards Program

• MB Incentives related to sustainability targets– ECO+ products– Energy-efficiency improvement– Employee Engagement Index

Sustainable Measurement

• Employees: – 2011: employees proud to work for DSM up to 78% from 76%

in 2010– Dedicated Brand Index within Annual Global Employee

Engagement Survey in 2012

• (social) Media: continuous share of voice/favorability analysis

• Analysts/Investors: annual qualitative survey

• Customers: Integrated approach with global NPS studies

• Prospects: Integrated approach with annual dedicated survey as from 2012/2013Measurement on output and impact including perceptions related to key drivers and brand preference parameters.

Measurement on output and impact including perceptions related to key drivers and brand preference parameters.

linkedin.com/company/DSM

twitter.com/DSM

facebook.com/DSMcompany

flickr.com/DSMcompany

youtube.com/DSMcompany

More information on DSM

dsm.com

Jos van HaastrechtTwitter: @JosvHaastrecht