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DSM Venturing

Corporate VC of DSM

DSM company profile

DSM is a global science-based company active in health, nutrition and materials. By connecting our unique competences in Life Sciences and Materials Sciences we are driving economic prosperity, environmental progress and social advances to create sustainable value for all stakeholders. We deliver innovative solutions that nourish, protect and improve performance in global markets such as food and dietary supplements, personal care, feed, pharmaceuticals, medical devices, automotive, paints, electrical and electronics, life protection, alternative energy and bio-based materials.

DSM has annual net sales of around € 9 billion. Our company is headquartered in the Netherlands, and we employ approximately 22,000 people across the globe.

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DSM Venturing – Corporate VC of DSM

DSM in motion: driving focused growth

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People - Planet - Profit: creating value along three dimensions

DSM Venturing – Corporate VC of DSM

Innovation boost 2005 - 2010

Proud to have achieved•€ 1bn sales from innovation•Increased speed of innovation•Setting up EBAs•Strong innovation infrastructure/culture•External recognition as leading innovator

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DSM Venturing – Corporate VC of DSM

Proven our ability to accelerate the pace of innovation

Innovation in new strategy

Next level aspiration•Innovation sales: > 20% of total sales•Sales EBAs (BMM/BP&S): > € 1bn •Innovation focus on platforms•Value creation via best practices•Set up China and IndiaInnovation Centers

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From 12%

to 20%

Innovation sales

DSM Venturing – Corporate VC of DSM

Doubling innovation sales

Focused platforms and a well-stocked pipeline

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DSM Venturing – Corporate VC of DSM

Emerging Business Areas ( DSM Innovation Center)

Climate & Energy

Health & Wellness

Global shifts

(Bio) Manufacturing

Bio-basedclean / green

materials

Sports & LifeProtectionMaterials

Food/feed ingredients

Innovation Platforms (Examples - Business Groups)

Bioprocessingingredients

BiomedicalAdvanced SurfacesBio-based Products & Services

Accelerating and supporting innovation

EBA Biomedical

EBA Advanced Surfaces

EBA Bio-basedProducts & Services

CTO Office

Business Incubator Venturing

DSM Innovation Center

New Business Development

Excellence in Innovation

Licensing

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DSM Venturing – Corporate VC of DSM

Enablers

DSM Venturing - Mission

DSM´s competence center for external (VC) participations aimed at boosting innovation & growth

Window to the worldExplore new emerging markets, technologies and products in order to enhance DSM´s product portfolio, technology toolbox and business model's

Strategic valueAdd value internally and externally through facilitating strategic co-operations with start-ups

Financial returnCreate value by investing in and divesting start-up companies

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DSM Venturing – Corporate VC of DSM

When does DSM Venturing invest?

DSM Venturing – Corporate VC of DSM

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High

LowLow

High

EmergingTechnology Proof of principle Commercialization Expansion

Time

Venture Capital

Public/PE

Grants

"Angels" Sales

Inve

stm

ent &

Ris

k

Financing gap

Risk

Investment amounts

Sales

DSM Venturing

Summary Investment scope

• Companies in early stage to expansion stage, active in DSM strategic scope

• Typical initial investment: € 0.5 – 5 mln

• Minority participations typically a 10 - 25% stake

• Recognized potential for strategic cooperation with DSM Businesses

• Representation in board of start-up

• Global (focus on USA, EU)

DSM Venturing – Corporate VC of DSM

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Track Record• 40 direct investments since 2001; 23 still active in our current portfolio• 17 divested:

– 2 acquired by DSM businesses (LTP and TCG)– 2 sold to third party acquirers (Morphotek and OPM)– 2 sold back to the founders (Creagri and Terreco)– 1 successful IPO (Speedel)– 10 failed and were dissolved, liquidated, wound down

• Net financial result is positive – i.e. ‘free’ option generation!• Partnerships realized with 30 portfolio companies in various forms and

degrees (feasibility studies, joint development, licensing, distribution/marketing relations, supply relations)

• In addition, DSM Venturing facilitated similar partnerships with > 50 other start-ups which it scouted but did not invest in

• We scouted and screened more than 3000 companies which provided useful insights and complementary window-on-the-world for our businesses

DSM Venturing – Corporate VC of DSM

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Portfolio Direct Investments

Life Sciences Material Sciences

Venturing team

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Marcel Kloosterman Investment Manager

IanFreelanceSenior Investment Manager EU

Casper BruensSenior Investment Manager

Greg McParlandSenior Investment Manager USA

Pieter WoltersManaging Director

For personal use only