DSM Annual Report 2008 - Segment information

Previous - 2) Change in the scope of the consolidation

3) Segment information

Business segments¹

2008	Continuing operations								Discon- tinued operations	Total
2008	Nutrition	Pharma	Perform- ance Materials	Polymer Interme- diates	Base Chemicals and Materials	Other activities²	Elimina- tions	Total	Discon- tinued operations	Total
Financial performance
Net sales	2,710	863	2,297	1,201	1,733	493	-	9,297	-	9,297
Supplies to other clusters	50	27	29	390	244	32	(772)	-	-	-

Supplies	2,760	890	2,326	1,591	1,977	525	(772)	9,297	-	9,297

Operating profit before exceptional items	447	89	175	19	260	(87)	-	903	-	903
Exceptional items	(3)	(24)	(15)	(1)	-	(2)	-	(45)	-	(45)

Operating profit	444	65	160	18	260	(89)	-	858	-	858

Depreciation and amortization	138	61	91	24	82	58	-	454	-	454
Additions to provisions	10	27	19	-	26	8	-	90	-	90
Share of the profit of associates	0	0	0	(4)	-	1	-	(3)	-	(3)
R&D expenditure	135	74	127	22	22	14	-	394	-	394
R&D expenditure / net sales (in %)	5.0	8.6	5.5	1.8	1.3	2.8	-	4.2	-	4.2
Wages, salaries and social security costs	475	185	277	55	140	299	-	1,431	-	1,431

Financial position
Total assets	3,835	1,445	2,706	710	1,333	8,730	(9,106)	9,653	-	9,653
Total liabilities	1,501	1,393	1,274	426	676	4,415	(4,727)	4,958	-	4,958
Capital employed at year-end	2,054	1,001	1,689	431	945	438	-	6,558	-	6,558
Capital expenditure and acquisitions	135	49	231	54	82	188	-	739	-	739
Share in equity of associates	2	1	0	10	-	5	-	18	-	18

EBITDA / net sales (in %)	21.6	17.4	11.6	3.6	19.7

Workforce³
Average	6,789	4,677	4,819	1,414	2,338	3,120	-	23,157	-	23,157
Year-end	7,043	4,401	4,978	1,427	2,357	3,385	-	23,591	-	23,591

1 For a description of the types of products and services of each segment please refer to the Review of business in the Report by the Managing Board.

2 Other activities also includes costs for defined benefit plans, corporate overhead and share-based compensation. A reasonable basis for the allocation of the costs for defined benefit plans to the individual clusters is not available, because these costs relate to both current and former employees.

3 The workforce of joint ventures has been included on a proportionate basis.

Transfers between segments were fairly limited and were generally executed at market-based prices.

Business segments¹

2007	Continuing operations								Discon- tinued operations	Total
2007	Nutrition	Pharma	Perform- ance Materials	Polymer Interme- diates	Base Chemicals and Materials	Other activities²	Elimina- tions	Total	Discon- tinued operations	Total
Financial performance
Net sales	2,302	903	2,390	1,232	1,529	401	-	8,757	-	8,757
Supplies to other clusters	41	29	33	293	180	54	(630)	-	-	-

Supplies	2,343	932	2,423	1,525	1,709	455	(630)	8,757	-	8,757

Operating profit before exceptional items	276	92	291	105	137	(78)	-	823	-	823
Exceptional items	(22)	(154)	-	-	-	-	-	(176)	-	(176)

Operating profit	254	(62)	291	105	137	(78)	-	647	-	647

Depreciation and amortization	127	76	80	28	72	41	-	424	-	424
Additions to provisions	32	13	1	0	13	23	-	82	-	82
Share of the profit of associates	-	-	-	(1)	-	(1)	-	(2)	-	(2)
R&D expenditure	135	67	113	13	30	14	-	372	-	372
R&D expenditure / net sales (in %)	5.9	7.4	4.7	1.1	2.0	3.5	-	4.2	-	4.2
Wages, salaries and social security costs	437	194	255	52	131	278	-	1,347	-	1,347

Financial position
Total assets	3,338	1,597	2,538	851	1,429	9,749	(9,674)	9,828	-	9,828
Total liabilities	1,364	1,452	1,095	526	1,155	4,012	(5,159)	4,445	-	4,445
Capital employed at year-end	1,909	1,034	1,568	408	765	298	-	5,982	-	5,982
Capital expenditure and acquisitions	142	60	196	51	65	54	-	568	-	568
Share in equity of associates	1	1	0	12	-	6	-	20	-	20

EBITDA / net sales (in %)	17.5	18.6	15.5	10.8	13.7

Workforce³
Average	6,726	4,828	4,292	1,431	2,257	2,899	-	22,433	-	22,433
Year-end	6,998	4,888	4,592	1,421	2,282	3,073	-	23,254	-	23,254

1 For a description of the types of products and services of each segment please refer to the Review of business in the Report by the Managing Board.

3 The workforce of joint ventures has been included on a proportionate basis.

Transfers between segments were fairly limited and were generally executed at market-based prices.

Geographical information

2008	Continuing operations
2008	The Nether- lands	Germany	Switzer- land	Rest of Europe	North America	China	Rest of Asia- Pacific	Rest of the world	Elimina- tions	Total

Net sales by origin
In € million	4,240	216	1,313	1,021	1,184	583	365	375	-	9,297
In %	46	2	14	11	13	6	4	4	-	100

Net sales by destination
In € million	947	989	264	2,624	1,647	783	1,172	871	-	9,297
In %	10	11	3	28	18	8	13	9	-	100

Total assets	9,397	246	2,595	2,946	1,643	711	461	509	(8,855)	9,653

Intangible assets and Property, plant and equipment
Capital expenditure	291	20	49	67	64	69	19	8	-	587
Carrying amount	2,032	164	584	573	972	396	70	50	-	4,841

Workforce¹ at year-end	7,452	827	2,265	3,949	2,907	3,557	1,308	1,326	-	23,591


2007
Net sales by origin
In € million	3,829	207	1,135	1,135	1,143	536	433	339	-	8,757
In %	44	2	13	13	13	6	5	4	-	100

Net sales by destination
In € million	793	929	213	2,584	1,566	698	1,162	812	-	8,757
In %	9	11	2	30	18	8	13	9	-	100

Total assets	9,415	382	2,187	2,968	1,447	587	393	545	(8,096)	9,828

Intangible assets and Property, plant and equipment
Capital expenditure	241	17	26	54	84	36	6	11	-	475
Carrying amount	1,917	185	425	751	796	308	57	38	-	4,477

Workforce¹ at year-end	7,219	793	2,177	4,154	2,768	3,564	1,268	1,311	-	23,254