PDF《Animal Nutrition & Health: driving》

Animal Nutrition & Health: driving growth & value A.

Ruy Freire President Animal Nutrition & Health DSM Nutritional Products Capital Markets Days

2012 Safe harbor statement This presentation 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. DSM cautions readers that such statements involve certain risks and uncertainties that are difficult to predict and therefore it should be understood that many factors can cause actual performance and position to differ materially from these statements. DSM has no obligation to update the statements contained in this presentation, unless required by law. The English language version of this document is leading. A more comprehensive discussion of the risk factors affecting DSM's business can be found in the company's latest Annual Report, which can be found on the company's corporate website, www.dsm.com Overview ? Dynamics of the animal nutrition industry ? Growth through differentiation and global reach ? Adding a new ingredients category: Tortuga GDP and population drive protein consumption Strong growth drivers propel animal nutrition ? Growing populations and demographic changes ? Increased meat & milk consumption in High Growth Economies ? The need for higher quality ingredients and healthy eating ? Increasing public concern about quality and call for stricter regulation on food safety ? High/more productive genetics ? Cost of feed /grains Source: FAO: The State Of Food And Agriculture Serving a highly efficient protein value chain Active Ingredients Compound Feed Farmer Meat/dairy Processor Commodity market products from food and fuels Active ingredient producers Vitamins Minerals Enzymes Carotenoids Health products Others Premix & Macro blends producers Full range feed producers (premix, specialties and compound feed) Compound feed producers Farmers Home-mixing farmers Vertically integrated producers Meat slaughtering & processing Dairy processing Nutritional consultancy & services Forms & delivery systems Premix Macro Blends Increased value in feed efficiency Grain prices driven by ? Drought in the middle west of the USA & South of Brazil ? Increasing soya and corn demand in China Short term impact on animal producers ? Cash focus due to reduced margin ? Focus on alternative raw materials & utilization of feed ingredients ? Animal culling and/or less lodging ? Intensified focus on feed conversion ? Meat prices correction Mid term impact on consumer ? Less meat supply ? Higher meat prices 75% 100% 125% 150% jan feb mrt apr mei jun jul aug sep Indexed global prices Corn Wheat Soybean Steep price development (2012 YTD) Jan Feb Mar Apr May Jun Jul Aug Sep Trends and opportunities for Animal Nutrition Raw Materials ? Higher feed prices expected for the long term ? Change in global weather patterns, crop yields and bio-fuel demands affecting feedstuff price Implications for animal protein production ? Shorter production cycle to react faster on volatility ? Integration/consolidation of production ? Drive to reduce cost and increase productivity ? Focus on using more alternative protein sources ? Genetics Different production cycle per species Beef (feedlots)

14 months Beef (pasture) 8-24 months Pork 5.5 months Poultry 5-6 weeks Salmon 14-24 months Feed additives and premix offer animal nutrition solutions Overview ? Dynamics of the animal nutrition industry ? Growth through differentiation and global reach ? Adding a new ingredients category: Tortuga Nutritional additives: fast growing feed segment ? 7.5bn (2011) nutritional additives market ? Most relevant markets are carotenoids, vitamins, enzymes & organic trace minerals ? Average market growth is 2-4% Main contributing profitable growth elements ? Expansion of the premix network ? Demand from High Growth Economies ? Value over volume strategy ? New innovative products ? Acquisitions & alliances Outgrowing the market Strong global position, active in all segments Poultry ? Efficiencies and feed conversion rates Swine ? Drive to increase productivity & reduce production cycle to react faster to industry volatility Aquaculture ? 50% of all fish consumption ? Strong growth in all sectors and consolidating Ruminant ? Dairy business growing faster in High Growth Economies ? Beef continues to grow Sales distribution in segments (excl. Tortuga) Foundation of Differentiation and Growth Full Value Chain Player Broad product portfolio Delivery Systems Active ingredients Blends & Premix Quality, Reliability, Traceability, Sustainability Vitamins Carotenoids Enzymes Nutritional Lipids Nutritional ingredients Personal care ingredients ? Chemistry ? Fermentation Stability / Shelf Life Delivery / Solubility Bio-availability Powder / Flow Properties ? Spray drying ? Encapsulation ? Absorption Custom Formulation Dilution 3rd party ingredients ?Logistics ? Sourcing ? Blending Broadest range of ingredients in the industry DSM animal nutrition brands in product categories Vitamins Carotenoids Enzymes Eubiotics ROVIMIX? portfolio ROVIMIX? Hy.D OVN CAROPHYLL? Red CAROPHYLL? Yellow CAROPHYLL? Pink RONOZYME? P RONOZYME? VP RONOZYME? WX RONOZYME? ProAct RONOZYME? A ROXAZYME G2 Enzyme blends VevoVitall? Cylactin? Crina? Poultry Plus Crina? Ruminant Crina Swine Specialties ROVIMIX? B-C ROVIMIX? Biotin RONOZYME? RumiStar CAROPHYLL? Pink ROVIMAX? NX Vevodar? ROVIMAX? NX MicroSource S Vevodar? Microganics Organic trace minerals Fosbovi Premix ROVIMIX? portfolio OVN Animal nutrition solutions address market needs Product marketability Production requirements Cost / Efficiency Food safety / health aspects Market needs DSM solution ? Enzymes, eubiotics, vitamins ? Premix ? Enzymes, organic acids ? OVN premix all species ? Concepts for production animals ? Vitamins, carotenoids impacting meat quality & food appearance ? Poultry & aqua specific concepts ? Best performance with OVN premix ? Quality for Life?: quality, traceability, reliability, sustainability ? Feed conversion ? Growth and health ? Feed cost, food production cost ? Environment and waste ? Animal welfare & hygiene ? Differentiated products ? Food quality ? Shift to poultry meat & fish ? Avoidance food scarcity ? No issues: Peace of Mind Nutritional consultancy & services Global premix network (42) for local markets Europe (13) ? Isando, S. Africa Africa (1) ? Cambridge, Ontario ? High River, Alberta ? Jefferson, Georgia ? Ft. Worth, Texas ? Ames, Iowa North America (5) ? Guadalajara, Mexico ? Guatemala City, Guatemala ? San Jose, Costa Rica ? Caracas, Venezuela ? Bogota, Columbia ? Quito, Ecuador ? Lima, Peru ? Puerto Mont, Chile ? Montevideo, Uruguay ? Buenos Aires, Argentina ? Sao Paulo, Brazil ? Pecem, Brazil Latin America (12) China (5) ? Xinghou, China ? Shandong, China ? Hunan, China ? Jilin, China ? Sichuan, China ? Belfast, Northern Ireland ? Heanor, UK ? Deinze (2), Belgium ? Madrid, Spain ? Milan & Fidenza, Italy ? Mszczonow, Poland ? Lysia, Greece ? Istanbul, Turkey ? Ujhartyan, Hungary ? Chelny, Russia ? Bucharest, Romania ? Bangkok, Thailand ? Ho Chi Min City, Vietnam ? Ambernath, India ? Poseung, South Korea ? Shizuoka, Japan ? Wagga Wagga, Australia ? Philippines (project) Asia Pacific (6) ANH R&D centers to strengthen nutritional solutions Animal Research Centers ? Established in EU ? Planned in other regions (Asia, LatAm) To advance nutrition advisory services ? Expand (clinical) science ? Expand applied animal nutrition for claims support ANH R&D Center Bazhou, China (artist's impression) Animal Nutrition & Health: driving growth & value ? Strategic actions for further growth ? Increase penetration in swine & ruminant segments ? Expand DSM's proprietary portfolio to solidify our position as global micro-nutrition leader ? Continue to strengthen the ANH global premix network ? Capture greater value from the value chain by enhancing our business model ? Continued growth and strengthening of our portfolio through innovation ? Enhance our capabilities to create nutritional solutions (nutrition advisory services) Overview ? Dynamics of the animal nutrition industry ? Growth through differentiation and global reach ? Adding a new ingredients category: Tortuga Tortuga, leader in supplements for ruminants Financials ?