Royal DSM N : Koninklijke DSM N.V., - DSM reports H1 2021 results

Press Release	23E
Heerlen (NL), 3 August 2021

DSM reports H1 2021 results

Highlights1

Continuing operations results2:

• DSM delivered a very good first half year
• Group sales +10% and Adjusted EBITDA +22%
• • Nutrition: sales +6%, organic sales +6%, Adjusted EBITDA +8%
  • Materials: sales +33%, volumes +33%, Adjusted EBITDA +86%
• Adjusted net profit up 21% to €444m

Total Group:

• Net profit of €1,010m including the book profit of €567m from the divestments
• Adjusted Net Operating Free Cash Flow of €380m, up 11%
• Interim dividend of €0.80 per ordinary share
• Significant step-up in greenhouse gas reduction target to 50% by 2030
• Full year outlook 2021: updated to reflect stronger Materials results

Key figures - continuing operations2

in € million	H1 2021	H1 2020	% Change	Volume	Price/mix	FX	Other
Sales	4,488	4,065	10%	11%	0%	-5%	4%
Nutrition	3,404	3,224	6%	7%	-1%	-6%	6%
Materials	971	730	33%	33%	4%	-4%	0%
Adjusted EBITDA	925	761	22%
Nutrition	730	674	8%
Materials	232	125	86%
Innovation	12	11
Corporate	-49	-49
EBITDA	879	683
Adjusted EBITDA margin	20.6%	18.7%

Co-CEOs statement

Geraldine Matchett and Dimitri de Vreeze, co-CEOs, commented: "Our very good start to the year has continued with ongoing positive momentum in our Nutrition business. Materials saw a strong recovery, supported by ongoing restocking through the supply chain. This strong performance in Materials, combined with our unchanged positive outlook for Nutrition, leads us to further increase the full year outlook for the Group.

We have achieved these results while also making good progress on our long-term strategic priorities and are realigning our organization following last year's acquisitions in Nutrition and the divestment of Resins & Functional Materials. Good progress has also been made in building our innovation- focused growth platforms, including the launch of several new initiatives in personalized and precision nutrition.

As a purpose-led company, we constantly seek to maximize our positive impact for all stakeholders. Today we are further accelerating our route to net zero by 2050 by raising our greenhouse gas scope 1 and 2 reduction targets for 2030 from 30% to 50%, independently validated by the Science Based Targets initiative."

Outlook 2021

For the full year, DSM continues to expect an Adjusted EBITDA increase in Nutrition at the upper end of its mid-term strategic ambition of high single digit growth. Together with a stronger performance in Materials than foreseen at the Q1 2021 Trading Update, DSM now expects an Adjusted EBITDA growth rate for the Group in the mid-teens, with a continued good Adjusted Net Operating Free Cash Flow.

1 Adjusted EBITDA is an Alternative Performance Measure (APM) that reflects our usual operations results. Organic sales growth is the sum of volume and price/mix. Adjusted Net Operating Free Cash Flow is the CF from operating activities, corrected for the CF of the APM adjustments, minus the CF of capital expenditures and drawing rights. 2 Results and KPIs throughout this document reflect continued operations, excluding the Resins & Functional Materials and associated businesses, classified as 'held for sale' in September 2020 and sold on 1 April 2021.

H1 2021 results DSM | Page 2 of 25

Strategy

DSM's purpose-led,performance-driven strategy sees sustainability and innovation as key growth drivers of a long-term focused plan, underpinned by ambitious targets across People, Planet and Profit. In markets related to Nutrition, Health and Sustainable Living, DSM is well-positioned to use its capabilities to create a positive impact and deliver value for all stakeholders.

In Nutrition, DSM sees significant headroom for further growth and innovation. The success of

its unique business model combining 'global products' and 'local solutions' is evident in a track record of 6% organic sales growth and a 10% Adjusted EBITDA growth CAGR 2015-2020.

Nutrition will continue to grow by building on this business model and by adding a third dimension of precision and personalization that captures emerging big data, digital and bioscience capabilities. As examples, in the first half of the year, DSM launched Sustell™, a data-driven sustainability service that helps drive improvements in the environmental footprint and economics of animal farming. It also created Hologram Sciences, a consumer-facing company that provides people with holistic solutions to manage their health by combining health diagnostics, digital coaching and personalized nutrition.

In Materials, DSM has strong growth and earnings potential, and is well positioned in the strategic area of Sustainable Living. After completing the sale of the Resins & Functional Materials businesses to Covestro AG, the Materials' activities now consist of DSM Engineering Materials and DSM Protective Materials. The company will continue to develop these into a resilient, higher-growth, and high-margin specialty business. Its offering addresses the increasing demand for materials that protect the health of both people and planet by adding further bio-based and circular solutions.

Overall, DSM aims to deliver mid-single digit % organic sales growth, an above 20% Adjusted EBITDA margin, and high-single digit % Adjusted EBITDA growth on a mid-term basis in both Nutrition and Materials, supported by its strong innovation pipeline.

Recent acquisitions and disposals

On 31 March 2021, DSM acquiredthe flavor and fragrance bio-based intermediates business of Amyris, Inc., extending its offerings in Personal Care & Aroma Ingredients. The transaction included an initial consideration of USD 150 million, together with profit-relatedearn-outs over the period 2021-2024 expected to be in the range of USD 100-150 million.

On 1 April 2021, DSM closed the saleof DSM's Resins & Functional Materials business (including DSM Niaga®, DSM Additive Manufacturing and the coatings activities of DSM Advanced Solar) to Covestro AG. DSM received about €1.4 billion net in cash and recorded a net book profit of €567 million. DSM's remaining solar back sheet business was sold to Worthen Industries, Inc. on 1 June 2021.

Events after the reporting period

On 13 July 2021, CVC Partners announced the proposed sale of AOC, in which DSM owns a minority position, to an affiliate of Lone Star Funds. It is estimated that DSM will receive, upon closing of the transaction, about €300 million in cash for its shareholding.

On 27 July 2021, DSM acquiredfull ownership of Midori USA Inc., a biotechnology company which has developed a new generation of eubiotics for animal health. DSM already owns 38.5% of the shares of Midori and acquired the remaining 61.5% for a consideration of USD 63m.

H1 2021 results DSM | Page 3 of 25

Sustainability

DSM's commitment to creating value for all stakeholders is fully anchored in its long-term purpose- led, performance-driven strategy. Through the focused development and application of scientific innovation, DSM aims to enable its customers to positively impact the health of people today and the health of the planet for future generations. This is supported by DSM's own improvements in its operations, reducing emissions and increasing the use of renewable energy, continually raising of safety standards, and promoting health and well-being among its workforce.

In H1 2021, DSM made significant progress on improving its environment impact. DSM is now well positioned to outpace its purchased renewable electricity target in particular. Building on the company-wide energy transition in recent years, all DSM Protective Materials sites worldwide now use 100% renewable electricity after its site in Laiwu, China, switched this year. DSM signed an additional power purchase agreement in July 2021 which means all its North American electricity needs will become 100% renewable this year. At the same time, DSM has exceeded its energy efficiency improvement targets with on-site initiatives such as the installation of a new chiller in Xinghuo, China, as well as the introduction of heat recovery systems and energy dashboarding.

DSM has announced today a major increase of its greenhouse gas (GHG) emissions reduction target. DSM now aims to halve its 2016 scope 1 and 2 emissions by 2030, accelerating its ambitions from a 30% reduction to 50%. The updated GHG target has been reviewed and approved by the Science Based Targets initiative and provides a strong foundation for DSM to achieve net zero by 2050. DSM has set solid interim goals, such as for 2025 and 2030, to drive action in both the short- and medium-term, ensuring it can deliver on this long-term ambition.

DSM's long-standing priority remains the safety, health and well-being of people. The company has continued to take proactive measures to support employees and their families during H1 2021, distributing millions more free immunity-optimizingmicro-nutrients doses and providing homeworking equipment, remote learning and development, and assistance programs worldwide. Despite the ongoing personal challenges for many individuals in the context of a global pandemic, employee engagement remains good. DSM has also stepped up its broad inclusion and diversity efforts, supporting highly-motivated employee resource groups and improving female representation at the executive level in H1 2021. DSM's measure of recordable safety incidents remained low, with the company striving to be incident and injury free.

Products and services that DSM considers to have a better environmental and/or social impact than mainstream alternatives in the market are measured and reported as Brighter Living Solutions. By constantly reviewing its portfolio, launching new innovations, and improving its footprint, DSM aims to maintain a high positive impact with its portfolio. DSM will ensure its methodology will allow reporting against new and future requirements of regulating authorities and create transparency in mapping the impact of DSM's sales on achieving the UN Sustainability Development Goals. DSM is committed to continue to obtain reasonable assurance on its impact reporting.

All data presented in the Sustainability Statements are subject to the non-financial reporting policies as disclosed in the IAR 2020.

H1 2021 results DSM | Page 4 of 25

Q2 Highlights

Continuing operations results:

• DSM delivered a very good second quarter
• Group sales +14% and Adjusted EBITDA +30%

1. Nutrition: sales +5%, organic sales +4%, Adjusted EBITDA +8% o Materials: sales +59%, volumes +50%, Adjusted EBITDA +210%

Key figures - continuing operations

in € million	Q2 2021	Q2 2020	% Change	Volume	Price/mix	FX	Other
Sales	2,294	2,020	14%	14%	0%	-4%	4%
Nutrition	1,726	1,649	5%	6%	-2%	-4%	5%
Materials	504	317	59%	50%	14%	-5%	0%
Adjusted EBITDA	484	371	30%
Nutrition	378	350	8%
Materials	124	40	210%
Innovation	6	6
Corporate	-24	-25
EBITDA	454	357
Adjusted EBITDA margin	21.1%	18.4%

Nutrition performed well in the second quarter delivering 4% organic sales growth, a particularly notable performance given the prior year comparable period in which strong COVID-19 effects had resulted in very strong 9% organic sales growth.

Good overall business conditions in both Animal and Human Nutrition remained, while Personal Care saw increased demand for its products after weakness in the segment since Q2 2020 directly related to COVID-19.

Nutrition Adjusted EBITDA was up 8%, with the 6% contribution from the Erber acquisition being offset by a 6% negative foreign exchange effect. The Adjusted EBITDA margin was up 70 bps at 21.9% versus 21.2% in Q2 last year, driven by positive sales mix effects.

Materials reported an exceptionally strong performance, supported by a temporary margin expansion due to good pricing momentum, which resulted in a very strong Adjusted EBITDA margin of 24.6% (versus 12.6% in Q2 last year). Adjusted EBITDA was up 210% versus Q2 2020 (+28% versus Q2 2019).

H1 2021 results DSM | Page 5 of 25

Key figures and indicators

		H1			Price /
in € million	2021	2020	% Change	Volume	FX	Other
mix
Sales - continuing operations	4,488	4,065	10%	11%	0%	-5%	4%
Nutrition	3,404	3,224	6%	7%	-1%	-6%	6%
Materials	971	730	33%	33%	4%	-4%	0%
Innovation Center	86	91
Corporate Activities	27	20

Continuing operations in € million	H1 2021	H1 2020	% Change	Q2 2021	Q2 2020	% Change
Sales	4,488	4,065	10%	2,294	2,020	14%
Adjusted EBITDA	925	761	22%	484	371	30%
Nutrition	730	674	8%	378	350	8%
Materials	232	125	86%	124	40	210%
Innovation Center	12	11		6	6
Corporate Activities	-49	-49		-24	-25
Adjusted EBITDA margin	20.6%	18.7%		21.1%	18.4%
EBITDA	879	683
Adjusted EBIT	606	472	28%
EBIT	560	394
Capital Employed	10,064	9,024
Average Capital Employed	9,931	8,624
ROCE (%)	12.2%	10.9%
Effective tax rate1	19.5%	17.3%
Adjusted Net profit - continuing operations2	444	368	21%
Net profit - continuing operations2	422	240	76%
Adjusted net EPS	2.54	2.13	19%
Net EPS	2.41	1.38
Operating cash flow	580	545	6%
Adj. Net Operating Free Cash Flow	388	330	18%
Capital expenditures3	229	229
Total Group in € million	H1 2021	H1 2020	% Change	Q2 2021	Q2 2020	% Change
Net profit2	1,010	270	274%
Net EPS	5.82	1.54	277%
Operating cash flow	579	584	-1%
Adj. Net Operating Free Cash Flow	380	342	11%
Net debt	1,219	2,102
Average number of ordinary shares	172.5	171.1
Workforce (headcount end of period)4	21,173	23,127

1. Over Adjusted taxable result
2. Including result attributed to non-controlling interest
3. Cash, net of customer funding, investment grants and excluding leases
4. Headcount 2020 refers to headcount at year end