Royal DSM N.V. Factbook, September 2009

Life Sciences and Materials Sciences

DSM at a glance

Addresses:

DSM Investor RelationsP.O.Box 6500, 6401 JH HeerlenThe NetherlandsTel: +31 45 578 2864Fax: +31 10 459 0275E-mail: investor.relations@dsm.com

DSM Media RelationsP.O.Box 6500, 6401 JH HeerlenThe NetherlandsTel: +31 45 578 2421Fax: +31 45 574 0680E-mail: media.relations@dsm.com

www.dsm.com

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Subject Page

The Life Sciences and Materials Sciences company 2

History 3

Organization 4

Strategy 7

Emerging Economies (China) 9

Innovation 10

Sustainability 11

DSM’s Businesses 13- Nutrition 14- Pharma 20- Performance Materials 25- Polymer Intermediates 32- Base Chemicals & Materials 35

Five Year Financial Summary 36

Disclaimer 39

Table of contents

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The Life Sciences and Materials Sciences company

Royal DSM N.V. creates innovative products and services in Life Sciences and Materials Sciences that contribute to the quality of life. DSM’s products and services are used globally in a wide range of markets and applications, supporting a healthier, more sustainable and more enjoyable way of life. End markets include human and animal nutrition and health, personal care, pharmaceuticals, automotive, coatings and paint, electrical and electronics, life protection and housing.

In 2008, DSM had annual net sales of € 9.3 billion and employs some 23,500 people worldwide. The company is headquartered in the Netherlands, with locations on five continents. DSM is listed on Euronext Amsterdam.DSM’s activities are grouped into four core clusters: Nutrition, Pharma, Performance Materials and Polymer Intermediates.Another cluster, Base Chemicals and Materials has been carved out for disposal.DSM focuses on Life Sciences and Materials Sciences. This strategy is fueled by a number of long-term societal trends: Climate and Energy, Health and Wellness, Functionality and Performance, and Emerging Economies.These trends offer numerous opportunities for DSM to help meet needs that are as yet unmet, especially in the areas where Life Sciences and Materials Sciences come together, for instance in the fields of (bio)medical materials, biomaterials and biofuels. The unique combination of activities offers DSM an interesting platform for growth, as the company increasingly believes – and also proves with innovations – that the opportunities for cross-fertilization between the two areas are numerous. DSM’s activities are aimed at creating value: value for customers and shareholders, as well as for employees and the communities in which the company operates. DSM aims to achieve this goal by combining entrepreneurial drive with an awareness of the need for continuity and a strong sense of responsibility. Sustainability is in this respect one of the most important elements of DSM’s Values (Respect for People, Valuable Partnerships, Good Corporate Citizenship). A further reduction of DSM’s eco-footprint and increased utilization of renewable resources are key elements in the company’s sustainability policy, which forms an integral part of DSM’s overall strategy.DSM continues to make its operations ever safer and reduce its eco-footprint ever further. DSM is not compromising its commitment to meeting the ‘triple bottom line’ of People, Planet and Profit. DSM will stick to its values, beliefs and principles and will stay the course, despite the economic climate.DSM has been rewarded for this with the No. 1 position in the Dow Jones Sustainability World Indexes 2009/2010 for the chemicals industry.

Royal DSM

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2004 2005 2006 2007 2008

Net Sales DSM ( € billion)

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There are few companies, and even fewer successful chemical companies, with a history to match that of DSM: companies that have changed so much over time, reinvented themselves and repeatedly adjusted to changing circumstances while fulfilling the promises to their stakeholders. In 1902, the Dutch government formed the coal mining company ‘De Nederlandse Staatsmijnen' (Dutch State Mines), later renamed DSM. As the mining operation grew, so did the company's coal-processing operation. A by-product of this operation, coke oven gas, was converted into ammonia, an important intermediate for a number of chemicals, including nitrogenous fertilizers. In the 1950s, chemical products became more prominent. DSM started focusing on providing industrial chemicals and raw materials for synthetic fibers and yarns.

In 1965, the Dutch government decided to close down the coal mining activities in the Netherlands. In 1975, the country's last mine was closed. Fortunately, DSM had anticipated this and had changed its focus before that time. By 1970 chemicals and fertilizers comprised the company's main activities, accounting for two-thirds of its turnover. In the 1970s and '80s DSM underwent major reorganizations to ensure sufficient scale and to diversify into high-quality plastics and fine chemicals. After 1985, DSM developed a series of ambitious innovation projects resulting in specialties such as the polyethylene fiber Dyneema®, the World’s strongest fiber™. In 1989, DSM was privatized and listed publicly. During the 1990s, the company paid greater attention to creating a balance between commerce and research and developing value-adding processes and products, particularly products for the pharmaceutical and the food industries and performance materials for the automotive and transport industry and the electrical and electronics sector. In 2002 DSM completed the sale of its petrochemicals business in anticipation of future market movements. This was followed by the acquisition of Roche's Vitamins & Fine Chemicals Division in October 2003, which was subsequently renamed DSM Nutritional Products. In February 2005, DSM acquired NeoResins, the coating resins business of Avecia. In 2007 DSM announced that it would accelerate its transformation into a Life Sciences and Materials Sciences company. In 2008 DSM acquired biomedical firm PTG to further increase its presence in the biomedical market. DSM’s evolution would not have been possible without vision, a willingness to embrace change, a strong capacity for innovation, an acute awareness of customers’ developing requirements, and the company’s deep roots in society.

History

DSM, the company that transformed itself

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Royal DSM N.V. is listed on the Euronext Amsterdam Stock Exchange. It has a Managing Board and an independent Supervisory Board. The Managing Board is responsible for the company's strategy, its portfolio policy, the deployment of human and capital resources and the company's financial performance. The Supervisory Board supervises the policy pursued by the Managing Board, the Managing Board's performance of its managerial duties and the company's general state, taking account of the interests of all the company's stakeholders.The company is governed by its Articles of Association, which can be consulted at the DSM website.The General Meeting of Shareholders decides on an amendment to the Articles of Association by an absolute majority of the votes cast. A decision to amend the Articles of Association may only be taken at the proposal of the Managing Board, subject to approval of the Supervisory Board. Members of the Managing Board and the Supervisory Board are appointed (and, if necessary, dismissed) by the General Meeting of Shareholders. DSM has a decentralized organizational structure built around business groups that are empowered to carry out all short-term and long-term business functions. This structure ensures a flexible, efficient and fast response to market changes. At the corporate level, DSM has a number of staff departments to support the Managing Board and the business groups. Intra-group product supplies and the services of a number of shared service departments and research departments are contracted by the business groups on an arm's length basis.

The DSM Managing Board (from left to right): Rolf-Dieter Schwalb, NicoGerardu, Feike Sijbesma (chairman), Jan Zuidam (deputy chairman) and Stephan Tanda.

Organization

DSM Organizational Chart

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Supervisory BoardCor Herkströter (Dutch). First appointed: 2000. End of current term: 2012. Position: retired; Last position held: President of Koninklijke Nederlandsche Petroleum MaatschappijN.V. and Chairman of the Committee of Managing Directors of Royal Dutch/Shell Group. Supervisory directorships and other positions held: chairman of the Advisory Committee of Royal NIVRA, member of the Capital Market Committee (Netherlands Authority for the Financial Markets), member of the Advisory Council of Robert Bosch, Emeritus Professor of International Management at the University of Amsterdam.

Cees van Woudenberg (Dutch). First appointed: 1998. End of current term: 2010.Position: retired; last position held: member of the Executive Committee of Air France-KLM. Supervisory directorships and other positions held: member of the Supervisory Boards of TransaviaCV, Royal Grolsch NV, Mercurius Group Wormerveer BV, Chamber of Commerce Netherlands and Royal Boskalis Westminster NV.

Ewald Kist (Dutch). First appointed: 2004. End of current term: 2012. Position: retired; last position held: Chairman of the Managing Board of the ING Group. Supervisory directorships and other positions held: member of the Supervisory Boards of De Nederlandsche Bank NV, Royal Philips Electronics NV, Stage Entertainment and Moody’s Investor Services, chairman of the Van Gogh Museum, member of the Board of Governors of the Peace Palace in The Hague (Netherlands) and of the Netherlands America Foundation.

Pierre Hochuli (Swiss). First appointed: 2005. End of current term: 2013 Position: retired; last position held: Chairman of the Board of Directors of Devgen NV. Supervisory directorships and other positions held: none.

Claudio Sonder (Brazilian and German). First appointed: 2005. End of current term: 2013.Position: retired; last position held: Chairman of the Managing Board of Celanese. Supervisory directorships and other positions held: chairman of the Board of Lojas Renner S.A., member of the Supervisory Boards of Companhia Suzano de Papel S.A., RBS S.A. Media Group, Cyrela Brazil Realty S.A., OGX S.A. and Hospital Albert Einstein.

Pierre Hochuli

Ewald Kist (Deputy Chairman)

Cor Herkströter(Chairman)

Cees van Woudenberg

Claudio Sonder

Tom de Swaan

Louise Gunning-Schepers

Tom de Swaan (Dutch). First appointed: 2006. End of current term: 2010 Position: retired; last position held: member of the Managing Board and Chief Financial Officer / Chief Risk Officer ABN AMRO. Supervisory directorships and other positions held: non-executive director of the Board of GlaxoSmithKline Plc and of the Board of Zurich Financial Services, chairman of the Supervisory Board of Van Lanschot Bankiers NV, member of the Supervisory Board of Royal Ahold NV, board member of Royal Concertgebouw Orchestra and member of the Board of Trustees of Netherlands Cancer Institute-Antoni van Leeuwenhoek Hospital.

Louise Gunning-Schepers (Dutch). First appointed: 2008. End of current term: 2012. Position: Chairman of the Executive Board of the Academic Medical Centre of the University of Amsterdam and Dean of the Medical Faculty of the University of Amsterdam. Supervisory directorships and other positions held: chairperson of the Supervisory Board of Rijksakademie van beeldende kunsten (Amsterdam), member of the Board of the Amsterdam Concertgebouw Committee Foundation, the Board of Arbo Unie (Netherlands) and the Board of Sanquin.

DSM OrganizationOrganization

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DSM Managing Board

Feike Sijbesma (Dutch) studied medical biology at the University of Utrecht and business administration at Erasmus University in Rotterdam. In 1987, he joined the Industrial Pharmaceuticals division of Gist-brocades, where he was responsible for strategic planning and business development. From 1990 to 1993, he was the division’s Marketing and Sales Director. Thereafter he was given leadership of Savoury Ingredients, later on a business unit of Gist-brocades’ Food Specialties Division. In 1995, he was made director of that division and joined Gist-brocades’ Executive Committee. Following the acquisition by DSM in 1998 he became Director of DSM Food Specialties business group. In 2000, Mr. Sijbesma joined DSM’s Managing Board of Directors. He became Chairman of the Managing Board and CEO in 2007. Feike Sijbesma

(Chairman)

Jan Zuidam (Dutch) studied chemistry at Delft University of Technology. He joined DSM Research in 1973. Between 1977 and 1983 he worked at a variety of positions including Melamine Plant Manager, Head of Purchasing for DSM’s former Organic Products Group, and Head of Production in the Special Products business unit. In 1987, he was appointed Director of the acquisition DSM Andeno. In 1990, he was appointed Director of Corporate Strategy for the DSM Group. In 1992, Mr. Zuidam returned to DSM Research; this time, though, as Director. He joined the Managing Board of Directors in 1998. His prime business responsibilities are for the Pharma and the Polymer Intermediates clusters.

Jan Zuidam(Deputy Chairman)

Nico Gerardu

Nico Gerardu (Dutch) studied Chemistry at the Eindhoven University of Technology (Netherlands) and Business Administration at Hasselt University (Belgium). He started his career with DSM in 1975 as Chemical Engineer in DSM’s Engineering Department. He held a number of management positions in various parts of DSM (Stamicarbon, Plastic Products Division, Polymers Division and DSM Andeno). In 1996 he went to Linz (Austria) as Business Unit Director DSM Chemie Linz in Austria. From 2000 till January 2006 he was Business Group Director DSM Anti-Infectives in Delft, the Netherlands. Mr. Gerardu became a member of the Managing Board of Directors in 2006. Hisprime business responsibilities are the Performance Materials and Base Chemicals and Materials clusters.

Rolf-Dieter Schwalb (German) studied Mathematics and Business Administration at theUniversity of Giessen, Germany. In 1976 he joined Procter & Gamble GmbH Germany, where, over a period of 18 years, he held various positions in the IT and Finance disciplines, including that of Controller of Procter & Gamble GmbH Germany. In 1991 Mr. Schwalb joined the European Headquarters of Procter & Gamble in Brussels, Belgium, where he was responsible for the planning and controlling of all European activities. Mr. Schwalb joined Beiersdorf AG in Hamburg, Germany, in 1994. He took on the responsibility of Division Controller and later that of Manager Corporate Accounting/Controlling Beiersdorf AG. In October 2000 he was appointed CFO and Member of the Executive Board of Beiersdorf AG. In 2006, Mr. Schwalb was appointed as member of the Managing Board and CFO of DSM.Rolf-Dieter Schwalb

Stephan Tanda (Austrian) studied polymer engineering at the University of Leoben, Austria, and Business Administration at the Wharton Business School of the University of Pennsylvania, USA. Stephan started his career in 1991 with DuPont in Switzerland. After assignments in Finance and Operations with DuPont in the USA, he was appointed Global Business Director, based In Luxembourg. In 1998 Stephan became Director Corporate Planning and later Vice President Strategic Planning & New Business Development Agriculture, Nutrition and Bio-Based Materials. In 2000 he was appointed President of Protein Technologies International, Inc. and later President and CEO of The Solae Company. In 2004 Stephan was appointed President and CEO of Freudenberg Nonwovens, a global group of industrial businesses, based in Weinheim, Germany, and Durham, USA. In 2007, Mr. Tanda joined the Managing Board of DSM. His prime business responsibility is the Nutrition cluster.

Stephan Tanda

Organization

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Materials Sciences

DSM’s Vision 2010 – Building on Strengths strategy builds on the company’s track record of portfolio transformation and sharpens its focus on Life Sciences and Materials Sciences at an increased pace. This focus is fueled by a number of societal trends. DSM aims to capture the opportunities offered by these trends.

Climate change and the adverse effects of the world’s dependency on fossil fuels are gaining in dominance, requiring new strategic inroads. Interest in health and wellness is increasing as a result of global population growth and aging. Also, society is asking for increased functionalities related to globalization, connectivity and life protection. Rapid growth in emerging economies continues, leading to a more even spread of economic prosperity over the world.

The acceleration of DSM’s portfolio transformation is an important prerequisite for increasing the focus on Life Sciences and Materials Sciences. The activities that do not fit in with this focus have been carved out and will be disposed of or partnered. These activities are grouped in the Base Chemicals and Materials cluster. This cluster comprises DSM Agro, DSM Melamine, DSM Elastomers, Citric Acid, DSM Special Products and Maleic Anhydride and derivatives. The selling process has started for most businesses. DSM has slowed down the process in view of the current financial and economic environment but still has the ambition of completing the disposals within the timeframe of Vision 2010.

DSM’s focus on Life Sciences and Materials Sciences offers attractive growth potential, not just in the two individual fields but also in their combination. The cross-fertilization potential between Life Sciences and Materials Sciences is high. DSM is convinced that biotechnology, traditionally associated with Life Sciences, will increasingly play a role in developing new biomaterials while at the same time materials will increasingly be used in Life Sciences applications.

The company has defined four Emerging Business Areas (EBAs) to create growth platforms that are based on the strengths and synergies of DSM’s positions in Life Sciences and Materials Sciences. These EBAs are Biomedical, Personalized Nutrition, Specialty Packaging and White Biotechnology. With a unique combination of market positions and technologies, as illustrated by the company’s leading position in white biotechnology, its long history in advanced chemical synthesis and its strong know-how with regard to Materials Sciences, DSM has ample opportunities for innovative growth. The main building blocks of DSM’s accelerated Vision 2010 transformation include reshaping the portfolio at an increased pace, the setting of ambitious new targets, measures related to DSM’s shareholders and a reinforcement of DSM’s Triple P policy. At the same time DSM continues to see market-driven growth and innovation, an increased presence in emerging economies and operational excellence as its key strategic drivers.

Strategy

Health andWellness

Exploiting strong market positions and technology platforms

Climate and Energy

Functionality andPerformance

EmergingEconomies

EBAs

Life Sciences

Nutrition Pharma PerformanceMaterials

PolymerIntermediates

Vision 2010 – Building on Strengths

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Within the Vision 2010 – Building on Strengths strategy DSM has defined a number of ambitious targets, including targets for organic sales growth, EBITDA margins and value creation. By realizing the (accelerated) Vision 2010targets, DSM intends to achieve a total shareholder return that exceeds the average of its peer group*.

(accelerated) Vision 2010 targets

Organic sales growth > 5%

Sales in China by 2010 USD 1.5 billion

Growth from innovation by 2010 €1 billion

CFROI WACC (7.5%) + 100 basis points

Sustainability Double energy savings; other targets confirmed (see page 11)

Total shareholder return Above peer-group average (*)

*: DSM 2008 peer group: Akzo Nobel, BASF, Clariant, Danisco, EMS ChemieHolding, Lanxess, Lonza Group, Novozymes, Rhodia, Solvay

EBITDA / net sales margin targets set per cluster

Target Actual 2008Nutrition > 18% 22%Pharma > 19% 17%Performance Materials > 17% 12%Polymer Intermediates > 13%* 4%*On average over the cycle

Market-driven growth and innovation is a key driver in DSM’s Vision 2010 strategy. DSM aims for sales growth based on existing leadership positions, accelerated by innovation as well as selective acquisitions. This should lead to organic sales growth of more than 5% per year. DSM is fully committed to its Vision 2010 target of generating an additional EUR 1 billion in sales from innovation by 2010. The company is confident that the pipeline of products currently in development will enable this target to be met. An additional objective is that DSM should become an intrinsically innovative company, with excellent innovation practices and an above-average return on innovation investments and with employees to whom innovation comes naturally. Operational excellence continues to be an important area in the pursuit of sustainable value creation. DSM enjoys a strong track record in establishing efficiency enhancements that represent step changes in performance and add to the bottom line. DSM remains fully committed to the pursuit of operational excellence and intends to continue and further strengthen its Operational Excellence program with new initiatives in advanced manufacturing (yield improvements and energy savings), commercialization (product launch program) and pricing.

Strategy

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DSM in China (2008):4,000 employees

14 manufacturing sites4 sales offices

Hi-Tech regional campus

The global trends identified by DSM which form the basis of the Vision 2010strategy are also very visible in China. Climate change and the adverse effects of dependency on fossil fuels are high on the agenda of policymakers. The change in lifestyle of the middle class and the younger generation will increase demand for food and bio-ingredients. The expected substantial rise in the number of Chinese citizens older than 65 years will drive demand for pharmaceutical products. And with increasing prosperity, demand for new, better, high-performing materials that contribute to new functionalities in for example connectivity continues to rise. Against this background, DSM is very well positioned in China. DSM has defined a target for sales in China. The initial Vision 2010 target of USD 1 billion sales in China was adjusted in September 2007 (Accelerating Vision 2010) to USD 1.5 billion.Over the past few years DSM has been experiencing growth rates in China of around 20% per year. Sales in China in 2008 amounted to USD 1,151 million, approximately 20% more than in 2007. DSM is also continuing its growth path in other emerging economies, such as Brazil, Russia and India.

DSM continues to experience growth in emerging economies. In China, DSM has had a significant presence for a number of years. China is transforming from the world’s manufacturing base into one of the world’s leading economies with the highest growth rates. Chinese industrial production has been growing on average by some 10% per year over the last 30 years, but as a result of the global economic downturn this growth slowed down. China has become one of the largest markets in the world, accompanied by an increasing demand for Life Sciences and Materials Sciences products to improve people’s lives. Economic prosperity and strong domestic demand, driven by a fast-rising income level, are expected to fuel economic growth in China for the coming decades.

Emerging Economies (China)

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600

900

1200

2005 2006 2007 2008

Sales in China (US$ million)

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Innovation is a key element of DSM’s Vision 2010 strategy. In order to achieve its target of €1 billion in additional innovation-related sales in 2010, DSM continues to focus on research & development, product introductions, acquisitions, open innovation and cooperation with the academic world.

R&D expenditure

2,1302,200Staff employed in R&D activities

4.24.2Total R&D expenditure as % of net sales

372394Total

1414Other activities

3022Base Chemicals and Materials

1322Polymer Intermediates

113127Performance Materials

6774Pharma

135135Nutrition

20072008x € million (including associated IP expenditure)

The fine-tuning of the business group innovation strategies has led to the acceleration of key projects. These are expected to generate the main part of the €1 billion growth target. Many innovations emerging from these projects have already found their way to the market and they all have projections that show considerably higher margins than DSM’s traditional portfolio. Substantial additional funding has been made available to step up DSM’s innovation efforts. In-house activities are complemented by open innovation tools, such as venturing, licensing-in, marketing alliances and R&D collaborations.

DSM Venturing is an active investor in start-up companies that create innovative products and services in Life Sciences and Materials Sciences that contribute to the quality of life. The New Business Development centers of the clusters together with the DSM Innovation Center scan the market for acquisitions to strengthen DSM’sinnovative power. So far, this has resulted in the acquisition of Crina, Pentapharm, Lipid Technologies Provider, Pamako and The Polymer Technology Group. All this resulted in additional innovation sales, compared to 2005, of around €600 million in 2008 (2007: €350 million). The number of innovation launches remained at the high level achieved in 2007 (59 vs. 66). DSM is confident it will be able to keep up this accelerated launch rate in the coming years.

Stanyl® ForTii™The first new polymer of the century

UVolve® instant floor coatings Quality for Life™assures that DSM ingredients are vouchsafed in terms of quality, reliability and traceability

Innovation

Delvotest® MTBreakthrough testing kit to detect the presence of melamine in milk for the Chinese market

0200400600800

1000

2006 2007 2008

Development of innovation-related sales (€ million)

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DSM’s activities are aimed at creating value: value for customers and shareholders, as well as for employees and the communities in which the company operates. DSM aims to achieve this goal by combining entrepreneurial drive with an awareness of the need for continuity and a strong sense of responsibility. This is reflected in DSM’s Values: Respect for People, Valuable Partnerships, Good Corporate Citizenship. DSM is continuously looking to improve the safety and health of its employees. A further reduction of DSM’s eco-footprint (including the value chain) and increased utilization of renewable resources are key elements in the company’s sustainability policy, which forms an integral part of DSM’s overall strategy. Many DSM products and innovations help reduce CO2 and other emissions at customers. DSM furthermore takes sustainability explicitly into account in the selection and evaluation of suppliers by applying a Supplier Code of Conduct, which is based on the company's own values. DSM has regained its position as the global sustainability champion and is the sustainability leader of the global chemical industry. DSM is No. 1 in the Dow Jones Sustainability World Index, which was published on September 3, 2009.

Sustainability

Planet / EnvironmentDSM has set itself environmental targets for 2010 on the basis of the principle that all DSM plants, wherever they are in the world, should comply with at least the same environmental standards as in the European Union or the United States.

Helping to build stronger societiesDSM’s belief in the importance of building successful societies is the inspiration for DSM’s partnership with the United Nations World Food Programme (WFP). Hunger is the number one cause of death in the world, killing more people than AIDS, malaria and tuberculosis combined. A related global scourge is a type of under-nutrition referred to as hidden hunger, whereby people have enough food to survive, but have access only to a diet which lacks key micronutrients. Hidden hunger is associated with a wide range of chronic diseases as well as physical and cognitive underdevelopment. As the world’s largest manufacturer of micronutrients and vitamins, DSM is committed to help in the fight against global hunger.

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On the basis of the Vision 2010 strategy, DSM’s human resources strategy Passion for People has been formulated. A key element of this strategy is to help employees to deal successfully with the challenges of a changing company in a fast-moving global marketplace. DSM’s shift towards a Life Sciences and Materials Sciences company means changes not only in the portfolio of activities but also in the way of working, including behavior and culture. A committed workforce is critical to the company in realizing its Vision 2010 ambitions. The concept of employee engagement is very important in this respect. The intensified efforts with regard to diversity are paying off. The number of non-Dutch and female professionals entering DSM continues to grow. DSM continued in 2008 to establish a stronger regional recruitment footprint, which enables the company to attract talents across the globe. DSM is strengthening the diversity of the leadership team, not only in terms of gender and nationality but also in terms of leadership style. DSM focuses on selecting leaders with inspiring leadership styles to support the company’s cultural change agenda

Sustainability

People

DSM workforce at year-end in: 2008 2007 2006Europe 14,493 14,343 14,037-the Netherlands 7,452 7,219 7,061-rest of Europe 7,041 7,124 6,976Asia 4,793 4,760 4,145-China 3,557 3,564 3,031- rest of Asia 1,236 1,196 1,114North and South America 4,030 3,873 3,690Rest of the world 275 278 284Total DSM 23,591 23,254 22,156

Female/male ratio (in %) -Total 23/77 24/76 22/78-Executives 7/93 7/93 7/93-Management 20/80 17/83 14/86

Percentage of non-Dutch -Executives 40 37 21-Management 53 45 37

Net sales per employee(in €1,000) 394 377 378

Total employee benefits costs (in €million) 1,465 1,389 1,338Frequency Index of recordable accidents (per 100 employees; DSM and contractors) 0.72 0.82 0.89

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Businesses

Nutrition€2,710 m Net sales (2008)

Pharma€863 m Net sales (2008)

Polymer Intermediates €1,201 m Net sales (2008)

Performance Materials €2,297 m Net sales (2008)

Pharma€863 m Net sales (2008)

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NutritionThe Nutrition cluster comprises DSM Nutritional Products and DSM Food Specialties. The Nutrition Cluster is a nutrition / food Ingredients business, serving the food, feed, cosmetic and pharmaceutical industries. Activities are based on an in-depth knowledge of customer / market needs. We have customized formulation activities in more than 44 locations, and a marketing/sales presence reaching over 60 countries. Customer intimacy is a key success factor. Our technical skills are based on application know-how and innovation translating market needs into products/services with new benefits. Our manufacturing technologies are largely based on biotechnology, fermentation, chemical process technology and particle engineering. DSM Nutrition holds leading positions in the ingredient markets for human and animal nutrition and health.

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Europe

Americas

Asia

RoW

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50

5 1 Food

Feed

Personal care

Others

Business Clusters

As the world’s leading manufacturer of ingredients for health & nutrition, DSM has its own definition of quality. It originates from our deep understanding of our customers’ needs and runs from product conception through manufacturing all the way to after-sales support. For DSM, quality is a way of life. This is the core of Quality for Life™: a seal of excellence. Quality for Life™ assures you that the ingredients you are buying from us are vouchsafed in terms of quality, reliability and traceability. Moreover, they are manufactured in a safe and sustainable way.

2008 Sales by Destination (%)

2008 Sales by End-Market (%)

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Animal Nutrition & Health Market

The Global Feed Additives market is estimated to be EUR 16bn (2007). Nutritional additives are estimated at EUR 6.5bn

Business Clusters

Market growth: 5%

Main customers (Human Nutrition & Health) • Large world class food companies (e.g. Nestlé, Coca

Cola, Kraft, Unilever, etc.)• World class dietary supplement companies (e.g. Wyeth,

Bayer, etc.)• Leading world class cosmetic companies (e.g.

Beiersdorf, L’Oreal, Procter & Gamble, etc.)• Regional/local medium-sized food, dietary supplement,

personal care companies

DSM Nutritional Products Quality for LifeTM

Key drivers of profitability

• Leadership in global markets: scale, cost, differentiation, innovation and quality

• Strong customer value proposition – Quality for Life program

• Long history of nutrition innovation

Key success factors of DSM Nutritional Products

• Global sales, marketing and distribution network• Innovation (products, concepts and processes)• Global/regional key account management• Strong differentiation through full marketing

concepts and via quality for life program

About DSM Nutritional Products

DSM Nutritional Products is the world's leadingsupplier of vitamins, carotenoids, micronutrients, and other ingredients to the feed, food, pharmaceutical and personal care industries.

6%, Bulk minerals3%, Nitrogen comp.2%, org. minerals

13%, Fats and oils

RawMaterials

IngredientProducer

Feed/FoodPharmaCosmetic industry

Retail Endconsumer

DSM Nutritional Products

active forms premix

Sensory Additives

ZootechnicaladditivesTechnological

additives

Medicinal feed

additives

Nutritional Additives

Pharma-ceuticals

Nutritional Additives

Pharma-ceuticals 54%, Amino

Acids

23%, Vitamins and substances of similar effect

Nutritional Ingredients

Taste

Texture

Processing aidsPreservation

Color

23%, Minerals

19%, Vitamins

12%, Herbal extracts9%, Nutritional lipids8%, Phytochemicals7%, Other ingredients6%, Dietary fibers

6%, Hydrolysates/peptides

4%, Amino Acids4%, Carotenoids1%, Probiotics

Market growth: 7%

Main customers (Animal Nutrition & Health)• World class leading global players in feed / premix and

animal protein producers . (e.g. Nutreco, Cargill, Tyson, CP BR Foods (Perdigao + Sadia))

• Many mid-size locally and/or regionally organized feed/premix companies and animal protein producers

• Farmers served via franchised stores (China only)

Human Nutrition & Health Market

The Global Food ingredients market is estimated to be EUR 32bn (2008)

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Main products• Vitamins (13 in total): DSM Nutritional Products is the

only player who can supply the complete range of vitamins in the most suitable forms for all possible uses.

• Carotenoids: a wide range of different carotenoids are manufactured as nature-identical coloring or stabilizing agents

• The most complete Feed enzymes portfolio in the industry

• UV filters and other cosmetic ingredients. • Nutraceutical ingredients for functional foods• Specialty ingredients such as: PUFA, lutein, lycopene, ,

HyD®, eubiotics, feed enzymes (e.g. Ronazyme® P, ProAct)

Business ClustersDSM Nutritional Products

Main competitive advantages• Global reach• Scale• Fully integrated player • Quality for Life™ program• Innovation capabilities

Manufacturing detailsProduction locations globally distributed

Technology• Highly complex multi-step synthesis• Formulation technology, ActleaseTM

• Natural product synthesis• Heterogeneous catalysis• Micronization and encapsulation• Application in feed, food, nutritional supplements and

personal care

Production Facilities:CH, GER, FR, China UK,US

Main Sales Officessales office in 42countries worldwide

Premix Facilities:44 premix plants worldwide

Leendert StaalPresident

Main competitorsDSM is the only company to offer the complete value chain of straights, forms and pre-mixes. All competitors cover only part(s) of the value chain. Typical ones are BASF, Danisco, NEPG, NHU, NCPC and several Chinese stock-listed companies are the main competitors.

Current DSM market positionDSM is the world’s market leader in nutritional ingredients to the food and feed industry with global reach.DSM Nutritional Products holds leading positions (#1, #2) in most of its products.

StrategyDNP follows a value growth strategy based on leveraging its global leadership position, radical and incremental innovation, strong focus on growth in emerging economies and acquisitions. DNP aims to expand its premix networks as a channel to market, a vehicle to deliver full quality assurance and supply chain traceability, as well as an enabler of customer intimacy.

Key raw materials / intermediatesDiverse set of raw materials. Main raw materials are secured through long term partnerships.

Main capex plannedExpansion of premix facilities in both ANH and HNH business.

Innovation Strategy• Innovate through entire life cycle• Continued improvements via incremental application

driven innovations• Open innovation with key customers and other partners

17

Key innovations:

RONOZYME® Rumistar is an enzyme preparation for application in high yielding dairy cows. Its main benefit is an increase in energetic feed value with positive effects on animal health performance and profitability .

Quali-C™ — To respond to our customers' and consumers' concerns, we have pro-actively introduced the QUALI-C™ brand guarantee for vitamin C that stands for quality, reliability, traceability and sustainability.

REGU®-Stretch is a new solution developed for the treatment of stretch marks. It contains a synthetic peptide, a vitamin and an organic marrubiumextract. It protects stretched skin structure and diminishes stretch marks.

REGU®-STRETCH

RONOZYME® ProAct is an enzyme preparation that maximizes protein utilization in feed and improves protein digestibility in poultry. It improves growth performance and reduces production cost.

resvida™ is a high-purity resveratrol, which is a health ingredient known for the ‘French-paradox’ benefit. It is a natural nutrient with most promising calorie restriction mimetic properties.

DSM Nutritional Products

18

MarketsTotal Food Ingredients market adds up to EUR 32 bn.

Main productsThe product portfolio consists of many branded uniqueproducts that can be categorized in • Enzymes (including coagulants),• Cultures and media, • Preservation systems• Antibiotic residue tests,• Savoury flavour ingredients• Specialty yeast• Arachidonic acid

Global market growth 2008-2012• Food enzymes 6-8%• Cultures and media 5-7%• Savory ingredients 3-5%

The growth in the Asian market is above average.

Main customers• Large world class food companies such as Nestlé,

Unilever, Kraft, etc.• Many medium-sized food and beverage processors.• In-depth partnership with Martek on ARA

Main Competitors• DSM Food Specialties main competitors, e.g. Danisco,

Chr.Hansen, Novozymes and LeSaffre offer a comparable portfolio or are focused on one of DSM FoodSpecialties’ market segments.

Current DSM Market position• DSM Food Specialties is the global market leader in

Bio-ingredients in food & beverages. • DSM Food Specialties holds leading positions (#1 or #2)

in the relevant segments of its portfolio.

DSM Food Specialties Quality for LifeTM

Key drivers of profitability

• Innovation in enzymes, savory ingredients and bio-actives

• Scale and production efficiency

Key success factors of DSM Food Specialties

• Innovation and value differentiation• Key customer intimacy• Global distribution network• Quality and application know-how

Raw materials

FoodIngredients

and Additives

Foodproducer

Retail/Endconsumer

About DSM Food Specialties

DSM Food Specialties is a global supplier of innovative ingredients for the food and beverage industries, primarily manufactured with the aid of fermentation and enzyme technology. The products contribute to the success of the world's favorite dairy, processed food, soft drink, fruit juice,alcoholic beverage and functional food brands.

Food Ingredients by application (Global)

1%6%1%

6%

9%

11%

16%

9%

12%

11%

18%

Beverages

Dairy

Bakery

Preserves

Savory

Meat/Fish

Oils/fats

Confectionery

Other

Funct. Food

Supplements

19

Innovation Strategy• Market driven product, process and system innovation• Continued improvements via incremental application

driven innovations• Open innovation with key customers and other partnersKey Innovations• PreventASe® - First process aid that reduces

acrylamide in dough-based products• Panamore ™ - Emulsifier replacement in bread• tensVida™ - Natural ingredient, clinically proven to

control blood pressure• Claristar™ - First natural ingredient to prevent tartrate

crystallization in wine. • Delvotest® MT - a breakthrough immunoassay

designed to detect the presence of melamine in milk. (only available to Chinese market)

• Tolerase® - Easy digestion of dairy products.• Rapidase® - Optimizing filtration and enhance ageing

on lees (improving the clarification and mouth feel of wine)

• Brewers Clarex® - Prevention of chill haze formation in beer by simplefying the complex and costly beer cold stabilization process.

• Maxilact™ LGX - Long lasting clean taste in lactose-free products

StrategyDSM Food Specialties’ growth strategy is to exploit opportunities of current businesses via organic growth based on radical innovation, geographical expansion in emerging economies, and acquisitions

Main competitive advantages• Innovation capabilities• Unique patent protected ingredients • Quality for Life™ program• Local distribution and application network

Manufacturing detailsDSM Food Specialties has manufacturing locations across the world: Europe (6), Americas (2) and in Asia Pacific (2).

TechnologyDSM Food Specialties has a world-class knowledge-intensive technology base, founded on two leading technologies: • fermentation • enzyme technology This technology base is focused on the core functionalities Taste, Texture and Nutrition. DSM Food Specialties uses both classical and modern biotechnology techniques including genetic engineering to produce its products.

Key raw materials / IntermediatesGlucose and molasses.

Main capex plannedNone

Brewers Clarex®

Xander WesselsPresident

Production Facilities

Europe - 6Americas -2Asia Pacific -2

Main Sales OfficesWorldwide

DSM Food Specialties

20

PharmaThe Pharma cluster comprises the business groups DSM Pharmaceutical Products andDSM Anti-Infectives.DSM is one of the world’s leading independent suppliers to the pharmaceutical industry.Many of today’s medicines around the world contain ingredients produced by DSM.

4121

3

35

Europe Americas Asia RoW

92

8

Pharma Others

Business Clusters

Route scouting using biocatalysis

The complexity of active pharmaceutical ingredients (API’s) is a challenge for all pharmaceutical contract manufacturing organizations. DSM’s innovative technology toolbox, including route scouting and evaluation of biocatalytic process concepts, offers environmentally friendly, sustainable ways to produce APIs by identifying shorter – and greener – routes with their diverse database of enzymes

DSM uses PharmePLE™ as a non-animal-derived, pure enzymefor the synthesis of optically pure compounds

2008 Sales by Destination (%)

2008 Sales by End-Market (%)

21

DSM Pharmaceutical Products

Broadmaterial base

Inter-mediates

ActivePharma-ceuticalIngredients

FinalDosage

Pharmadistribution

Endconsumer

About DSM Pharmaceutical Products

DSM Pharmaceutical Products is a global provider of high quality custom contract manufacturing services. DSM Pharmaceutical Products’ facilities are approved by the US FDA, EMEA, Japan and many foreign regulatory agencies. DSM Pharmaceuticals Inc. is licensed by the US DEA to manufacture scheduled drugs.

Key drivers of profitability• New products pipeline• PER.C6® and/or XD® license sales• Increased outsourcing of tech transfers

Key success factors of DSM Pharmaceutical Products• Outstanding cGMP and regulatory compliance• Operational excellence• Customer service and intimacy• Technology

DSM Pharmaceutical Products

MarketsDPP focuses on the innovative (bio)pharma market as well as the merchant pharma fine chemicals markets. The pharma outsourcing market has a size of $ 40 bn.

Market growth 2008-2012The average growth of pharmaceuticals sales for 2008/2009 is 4.5-5.5% worldwide and for biopharmaceuticals 11-12%, while the outsourcing of pharmaceutical manufacturing is growing at 11.4% (2007-2011) annually, and at 15-20% (2006-2011) for biopharmaceuticals.

Most attractive marketsInnovative (bio)pharmaceutical contract API manufacturing for Europe and North America, biopharmaceutical techno-logy licensing globally, and finished dosage manufacturing for the North American market.

Current DSM market positionIn general, the outsourcing pharma market is highly fragmented. DSM’s focus is mainly on primary and secondary manufacturing, in which it holds a leading position. Due to its broad offering it holds top positions in the main segments.

Global outsourcing market

10%

7%

22%

41%

20%

Contract ResearchPrimary MfgSecondary MfgFormulation dev.Other

Main customersLeading large and mid-size pharmaceutical companies (e.g. Pfizer, Roche, Shire, etc.) as well as a select group of emerging pharmaceutical companies all over the world.

Main competitorsCompetition is coming from companies typically offering a comparable portfolio or companies that are focused on one of the market segments. Such companies are e.g. Lonza, Boehringer Ingelheim, Catalent, etc.Main products / premium services• DSM Pharmaceutical Products is a global provider of

contract manufacturing and development services including

• PER.C6® licensing and contract manufacturing• XD® proprietary mammalian cell culture production yield

optimization technology• Innovative technologies in enzymatic route scouting and

micro reactor production• Pilot to commercial scale production of Active

Pharmaceutical Ingredients (APIs) • Aseptic liquid filling and Lyophilization• Clinical trial and commercial scale finished

dosage/packaging• Cytotoxics aseptic fillings

StrategyTo become the partner of choice for established and emerging innovative pharmaceutical companies, by excelling in service, compliance, product quality and at the same time offering partners competitive cost via innovative manufacturing in combination with sourcing solutions.

Main competitive advantages• Extensive portfolio of products/services for supply chain• Broad range of innovative technologies

(XD®, route scouting including biocatalysis, etc.)• Proven biopharmaceutical filling capabilities

22

DSM Pharmaceutical Products

Manufacturing detailsGreenville, US – Sterile and finished dosage productsLinz, Austria – cGMP/ISO custom manufacturingVenlo, Netherlands – cGMP custom manufacturingGroningen, Netherlands – cGMP biologics custom mfg.Regensburg, Germany – cGMP scale-up facility

TechnologiesA very broad range of technologies with world-class competencies including: biocatalysis, homogeneous catalysis, mammalian cell lines, fermentation and chiral technologies.

• PER.C6® human cell line – co-exclusive licensing withCrucell NV

• XD® technology – unique proprietary technology toimprove yield

• Lyo Advantage™ / Liquid Advantage™ – state of theart distribution control system

• Micro reactor technology – unique proprietary highproductivity technology for pharma

• pluGBug® -Technology

Key raw materials / IntermediatesVery diverse set of raw materials, whose procurement is mainly driven by customers’ regulatory filings. Sourcing volumes from low cost countries such as China, India, etc. are increasing.

Main CAPEX planned• None

Innovation strategyTo consistently innovate and deliver customer servicebased on offering advanced manufacturing technologies,superior regulatory compliance and product quality.

Key Innovations• XD® technology• Route scouting including biocatalysis• Micro reactor technology

DSM's XD® Technology has been developed to drive yield improvements in the production of biopharmaceuticals. XD's ultrahigh yields allow for downsizing of bioreactors and open avenues for new biopharmaceutical manufacturing concepts.

The PER.C6® platform encompasses cell line generation technology, cell culture development, upstream and downstream processes, design, scale-up, technology transfer, and regulatory support.

Key Drivers Profitability

• Development of new products pipeline • PER.C6 license sales

Key success factors DSM Pharmaceutical Products

• cGMP and regulatory compliance• Operational excellence• Customer service and intimacy

Production Facilities• Greenville, US• Linz, Austria• Venlo, Netherlands• Groningen, Netherlands• Regensburg, Germany

Main Sales Offices• Parsippany, US• Vienna, Austria• Sittard, Netherlands• Local offices globally

XD®, pluGBug®, Lyoadvantage™, and Liquid Advantage™ are trademarks of DSM NV, PER.C6® is a trademark of Crucell NV

Bob HartmayerPresident

23

Key drivers of profitability

• Basic PEN price• Currency exchange rate• Cost development PEN and derivatives

Key success factors of DSM Anti Infectives

• Market access through global presence/alliances• New technologies• Access to China (JV NCPC)• Optimization of product value• Operational excellence• Quality oriented customers

Business Clusters

MarketsThe total global antibacterial market is estimated to be US$ 36 billion.

Market growth 2008-2012Average overall market growth is 2% for semi-synthetic cephalosporins (SSCs) to 4% for semi-synthetic penicillins (SSPs) with the highest market growth expected in Asia (SSP 4-5%, SSC 3-4%) .

Current DSM market positionDSM Anti-Infectives is the largest player in the field of betalactams and cephalosporins with leading positions in the higher value added segments:

Penicillin6-APA7-ADCA top positionSSP’s top positionSSC’s top position

Most attractive marketsAlthough currently the western economies are the most attractive markets, DSM Anti-Infectives has an increased focus on the rapidly growing markets in Asia

Main customersLeading large pharmaceutical companies such as GlaxoSmithKline, Sandoz, Teva, as well as local midsized pharmaceutical companies all over the world

Main competitorsCompetition is coming predominantly from Chinese/Indian producers (e.g. United Laboratories, CSPC, Aurobindo) and European producers (e.g. Antibioticos, Sandoz)

Main productsDSM Anti-Infectives is the world’s leading supplier of active pharmaceutical ingredients such as:

• Penicillin (PEN)• Intermediates such as 6-amino-penicillanic acid (6-APA),

7-amino-deacetoxycephalosporanic acid (7-ADCA)• Semi-synthetic Penicillins (SSPs) such as Amoxicillin and

Ampicillin• Semi-synthetic cephalosporins (SSCs) such as Cephalexin

and Cefadroxil• Nystatin• Process enzymes

DSM Anti-Infectives

About DSM Anti-Infectives

DSM Anti-Infectives is one of the world’s leading suppliers of active pharmaceutical ingredients (APIs). Not only is DSM Anti-Infectives one of the few penicillin producers outside of China, it is also one of the few API manufacturers that continuously invests in R&D for generic antibiotics.

Glucose PEN/Inter-mediates

ActivePharmaceutical

FinalDosage

Pharmadistribution

Endconsumer

DSM Anti-Infectives.

Cephalosporins27%

Beta-lactams26%

Macrolides13%

Quinolones13%

Tetracyclins5%

Sulfonamides4%

Aminoglycosides6%

Other6%

#2 position

Improve and Strengthen

24

StrategyDSM Anti-infectives’s strategy is to retain its leading position in the global market for Penicillin and Penicillin derivatives. The business group has retained profitability by implementing significant cost reductions and introducing new technologies.

Main competitive advantagesRegulatory and product quality, reliability, after sales service, enzymatic technology

Manufacturing detailsPenicillin Mexico, China6-APA China, Mexico, India7-ADCA NetherlandsSSP’s Spain, Mexico, China, India, EgyptSSC’s Spain, ChinaNystatin Capua, Italy

TechnologyDSM has integrated its competences in biotech and chemistry for the development of a new range of high quality semi-synthetic penicillin and semi-synthetic cephalosporin. The results of this effort are the DSM PureActives™, each produced with our innovative enzymatic technology.

Key raw materials / intermediatesGlucose, sodium phenylacetate/phenylacetic acid

Main capex plannedDSM Anti-Infectives is actively pursuing joint ventures with NCPC, resulting in capacity expansion and a significant improvement in economies of scale.

Benefits of DSMPureActivesTM

• Higher yield due to higher purity • Less overages required due to higher purity and an

increased retest period• Improved machine efficiency due to better flowablility• With larger batch size, testing and administration at

QC departments will be reduced • Relief of registration efforts due to reduced impurity

level• Guaranteed activity of active substance over shelf life• Waste produced during production is reduced by up to

90% • Greenhouse gas emissions reduced by over 50% • Reduced emissions of residual solvents to air • Emissions to water are reduced by approximately 50% • Reduced toxicity of antibiotic ingredient, owing to

absence of almost all chemicals and solvents • Better taste due to the absence of residual solvents

Key Innovations• Innovation in technology (implementing best technologies

throughout global network)• Expansion of DAI portfolio in generic APIs through

product innovation• Branding PureActives™ (green routes)

Sales Offices• Netherlands,Spain• USA, Mexico• India, China• Egypt

Production Facilities:• Ramos Arizpe, Mexico• Santa Perpetua, Spain• Delft, The Netherlands• Shandong, Zhangjiakou,

China• Toansa, India• Cairo, Egypt• Capua, Italy

Stefan DoboczkyPresident

DSM Anti-Infectives

25

Performance MaterialsThe Performance Materials cluster comprises the business groups DSM Engineering Plastics, DSM Dyneema and DSM Resins.The business groups specialize in the manufacture of technologically sophisticated, high-quality products that are tailored to meet customers’ performance criteria. The products are used in a wide variety of end-use markets: the automotive industry, the electrical & electronics industry, life protection, the sports and leisure industries, the paint and coatings industry and the construction industry.

15

4425

16

E&E B&C Auto / transport Others

Business Clusters

61

21

18

Europe Americas Asia

2008 Sales by Destination (%)

2008 Sales by End-Market (%)

Products that deliver more with less

At a time when consumer expectations are more sophisticated than ever before, people are also thinking more critically than ever before about the products they use. The search is on for products which show how ‘less is more’ in communication, mobility and convenience. DSM is creating a new generation of eco-efficient high performance products – from resins to medical devices.

26

Markets• Key segments for engineering plastics: Automotive,

Electrical & Electronics (E&E), (food) packaging, Optical & Glazing, and Consumer / Industrial

• Key products are polyamide 6, PA66, polycarbonates (PC), heat resistant resins (HRR), polyesters (PBT, PET), POMs, thermoplastic copolymers

Total global market size for engineering plastics: ~ EUR 25bn in 2008

Most attractive markets• Segments: electrical power distribution, electronic

components, automotive under the hood, automotive safety systems, flexible food packaging

• Regions: Asia, especially China and India, but also Europe. US is becoming more and more attractive because of increasing drive for sustainable solutions

• Products: heat resistant resins, polyamides

Business Clusters

Market growth 2008-2012

• The Engineering Plastics market has grown above GDP, at about 6% per year for the past couple of years. Growth above GDP is expected for the coming years as well.

• The highest growth is in Asia Pacific, especially in China and in India, where pre crisis growth has been above 15% per annum, fueled by local demand and a shifting of manufacturing / development to these regions.

• The highest growth per product is in heat resistant resins

Examples of customers

• Automotive: Bosch, Valeo, Peugeot, Tata Motors

• E&E: Schneider, Siemens, Samsung, Philips, Nokia • (Food) packaging: VF Verpackungen, Wipack• General: Salomon (Adidas)

Main Competitors

• PA6: BASF, Lanxess, UBE

• High temperature PA: Dupont, Kuraray, Solvay, Mitsui

• Thermoplastic copolyesters: Dupont, Ticona

Current Global DSM Market position

• #1 in high temperature polyamides

• #2 in polyamide 6

• #2 in thermoplastic copolyesters

DSM Engineering Plastics Global partner for high performance solutions

Key drivers of profitability

• Growth in key markets• Prosperity and lifestyle: spending power, connectivity,

health & demographics• Functionality and performance• Sustainability drive: weight reduction (replacing metal),

fuel efficiency, halogen free, reduced emissions• Success of innovations, new launches

Key success factors of DSM Engineering Plastics

• Market leadership in key segments• Cost position• The right portfolio of engineering plastics• Innovation drive (new products, new applications)• Global presence (including China / India)• DSM EP’s outstanding knowledge of products and

applications, combined with excellent service levels.DSM EP has positioned itself as a valuable solutions-oriented partner in all segments.

Oil/gas MonomersProcessing

MolderSystemsupplier

OEM /End user

PolymerizationCompounding

About DSM Engineering Plastics

DSM Engineering Plastics is a global player in polyamides, polyesters, polycarbonates and adhesive resins. These materials are used in components for the electrical and electronics, automotive, engineering and packaging industry.

27

Innovation StrategyCreate maximal profitable growth as solution provider for performance thermoplastics. Capture opportunities frommain societal trends such as Climate & Energy,Functionality & Performance and Emerging Economies.Key Innovations• EcoPaXX™, the ecofriendly new green engineering

plastic• Stanyl® ForTii™, DSM’s new polyamide with the highest

heat resistance among DSM’s polymers• Halogen free flame retardants• Akulon® Ultraflow• Stanyl® thermoconductive polyamide• Akulon® for integrated oil sumps• Xantar® Laser Direct Structuring• Arnitel® C for high temperature resistant cables• Arnitel® XG for halogen free FR cables

DSM Engineering Plastics

DSM Engineering Plastics’ Strategy• Target 10% top line growth annually via strong innovation

drive and global expansion• Further reduce impact of general economic conditions

and input costs by focusing on selected high growth segments, global presence and backward integration

• Extend global leadership in high temperature polyamides, polyamide 6 and TPC

• Extend leadership positions in selected end markets• Deliver on CFROI targets at or above 8.5%

Main competitive advantages• Global presence• Know-how• Innovation drive (new products)• Integration with DFI (caprolactam for PA6)

Key products of DSM Engineering Plastics• Akulon® polyamide 6 and polyamide 66• Stanyl® polyamide 46• Stanyl® ForTiii™• EcoPaXX™• Arnite® polyester (PBT, PET)• Arnitel® polyester (TPC)

Manufacturing details (see world map below)

TechnologyInjection molding, extrusion, blow molding

Key raw materials / IntermediatesCaprolactam, DAB, benzene/phenol

Main capex (Recently on stream):• 2nd Stanyl® polymerization plant in Geleen (NL)• Akulon® - PA6 polymerization in JiangYin, China• Compounding capacity in China expanded by 50%• Green field compounding site in Pune in India• Stanyl® ForTii™ market development plant in Geleen

Production Facilities• Augusta, US• Evansville, US• Emmen and Geleen,

Netherlands• Genk, Belgium• Jiangyin, China• Pune, India

Head Office DSM Engineering Plastics• Sittard, Netherlands

EcoPaXX™The new green polymer

Akulon® UltraflowAir Bag Containers

Stanyl® Arnitel® C Halogen FreeWire and Cable

Roelof WesterbeekPresident

28

Business Clusters

Market growth 2008-2012UHMwPE fiber and its derivative products are regarded as high-performance, high-value replacements for more traditional materials such as polyester, polyamide, steel or other high-performance fibers, such as aramids. Competitive products are segment specific. Penetration in existing markets is proceeding at over 10% per annum and additional applications are coming on stream, such as cardiovascular components and lightweight containers for airfreight. The total attainable market therefore is continuously growing as new applications arise.

DSM Dyneema Protect your Investment with the World’s Strongest Fiber®

Key drivers of profitability• Penetration into existing applications• Success of innovations, new launches• Dyneema® and Dyneema Purity® brands

Key success factors of DSM Dyneema• Capability to manage growth, both in hardware

and in people• Knowledge and understanding of different applications,

markets, and value chains• Strong, healthy IP position (patents & trademarks)• Capability to manage (speed of) innovation• Reliability & Quality

Naphta /ethylene

UHMwPE Converter OEM End userUHMwPEfiber

Dyneema®

Examples of customers• Life Protection: TenCate (vests, vehicle protection)

• Commercial Marine: Unitex (lifting slings), Badinotti(fishing nets), Samson (mooring lines)

• Sports: Gottifredi Maffioli (sailing ropes), Pure Fishing (fishing lines)

• Others: Bluewater Energy Services (LNG transport hoses), Hoffman Ace (cargo nets)

Main competitors• Honeywell (Spectra® UHMwPE).• DuPont (Kevlar® aramid)• Steel & polyester producersCurrent DSM market position• Market leader in UHMwPE, overall leader in high

performance fibers in many segments.

About DSM Dyneema

DSM Dyneema is the inventor, manufacturer and marketer of Dyneema®, the world’s strongest fiber™. This product, based on ultra high molecular weight polyethylene (UHMwPE) is produced by means of DSM’sproprietary processes. The Dyneema® brand enjoys very high recognition in the value chains served

MarketsDyneema® is used extensively in ropes, cables and nets in the fishing, shipping and offshore industries. It is also used in safety gloves for the metalworking industry and in fine yarns for applications in sporting goods. In addition, it is applied in bullet-resistant armor and clothing for law-enforcement personnel and the military. Dyneema Purity®is a special grade for applications in the medical sector. A number of new markets are in various stages of scouting & development. The business group will continue to focus on the further development of ultra high-performance polyethylene materials and technologies and on extracting value from its IP assets

Most attractive markets• Life Protection (e.g vests, vehicle protection)• Commercial Marine (shipping, offshore, fishing)• Sports (sails & rigging, fishing lines)• Medical (Dyneema Purity®)• High Performance Textiles (cut resistant gloves,

clothing)

29

Innovation Strategy• Introduce new applications and new products for

Dyneema® with profitability clearly above CFROI (DSM’sCFROI target is 8.5%).

• Continue to build and extend Dyneema® brand value.• Protect and strengthen IP positions.

Key Innovations• Dyneema Purity® for an increasing range of medical

device applications.• Dyneema® Tape Technology for vehicle and personal

protection.

DSM Dyneema Strategy• Drive penetration of existing applications, exploiting

advantages in total cost of ownership to substitute traditional solutions.

• Establish strong relationships with key value chain players.

• Accelerate entry into targeted new markets (geographies & end-uses).

Main competitive advantages• Technical benefits related to physical attributes.

Dyneema® is up to 15 times stronger than quality steel and up to 40% stronger than aramid fibers, it floats on water and is extremely durable and resistant to moisture, UV light and chemicals.

• Dyneema® brand: highly valued throughout the value chains served.

• Innovation capabilities (products, applications, technologies).

Manufacturing details• Dyneema® yarn and Dyneema® UD are produced in

Greenville, North Carolina (USA) and Heerlen (Netherlands).

• The specialty product for the medical device industry, Dyneema Purity® is manufactured in a special process in DSM’s facilities in Heerlen.

• The new tape technology is applied in Flaach(Switzerland).

• DSM is also a partner in a manufacturing JV in Japan. Technology• Dyneema® is manufactured through DSM’s proprietary

gel spinning process. Dyneema® Tape and UD are also subject to extensive patent coverage.

Key raw materials / Intermediates• Ultra High Molecular Weight Polyethylene (UHMwPE)

Main capex planned• USD 450 million investment project, increasing capacity

of Dyneema® worldwide, with a focus on UD, Tape and Dyneema Purity® in Greenville.

Production Facilities• Greenville NC, US• Heerlen, Netherlands• Flaach, Swtizerland• Joint Venture in

Japan

Main Sales Offices• Urmond, NL• Stanley, NC, US• Shanghai, China Christophe Dardel

President

DSM Dyneema

Dyneema®, with you when it matters

30

Main productsCoating Resins: • Powder resins• Waterborne resins• High solids / solvent free resins• UV-curable resins• UV-curable stereolithography resins• UV-curable fiber optic coatings and inks• UV-curable formulated coatingsComposite Resins:• Sizings and binders• Gelcoats• Unsaturated polyester / vinyl ester resins• Thermoset urethane resins

Main markets /applications areasCoating Resins:• Decorative & DIY• Industrial Metal (including Can & Coil) and

Wood• Industrial Plastics• Industrial Powder Coatings• Graphic Arts Inks and AdhesivesStructural Resins:• Building & Infrastructure• Automotive and Transport• Marine• Tanks, Pipes & Relining• Advanced compositesMost attractive markets• selected keysegments: the right

combination of end-markets, regions and technologies to capture the fastest growth.

Global Composite Resins Market ( € 6 bn)

12%2%

15%58%

13%

Building & InfrastructureAutomotiveMarine

Tanks, Pipes & ReliningAdvanced Composites

DSM Resins Growing an Innovative Global Resin Company

Key drivers of profitability• Economic growth driving growth of markets• Drive for lighter materials • Environmentally friendly, safer, solvent free paints• Growth of fiber optics market (IT infrastructure)• Ability to commercialize innovations

Key success factors of DSM Resins• Global leadership• Market-oriented business model / brand reputation• Market oriented innovation model• Resin is differentiator in application• Leverage broad technology toolbox• Reliability

About DSM ResinsDSM Resins is a global player in the manufacture, marketing and sale of high quality resins for the coatings and composites industries. The company employs over 2,400 people and has over 22 large manufacturing plants across the world. This reflects DSM Resins’ global activities and its dedication to local and global customers.

Raw Materials

Monomers PaintsInks

Molds

OEM End userResins

Global Coating Resins Market (€ 20bn)

6%6%

17%

39%

24%

8%

Architectural Automotive

General Metal Industrial Wood

Powder Others

31

Market trends• Drive for lighter materials, weight reduction,

environmentally friendly materials / systems• Durability, stronger materials: performance• Ease of use, functionality• Lower system cost• Use of bio-based material

Current DSM market position• Global No.1 Powder Coating Resins• Global No.1 Liquid Specialty Resins• Global No 1 Coatings for Fiber Optical Materials• European No.1 in Composite Resins

Examples of customers• Coating Resins: AkzoNobel, PPG, DuPont• Composite Resins: Menzolit, Beneteau Group

Main competitors• Coating Resins: BASF, Dow, Cytec, Hexion, 3D Systems• Composite Resins: Cray Valley, Reichhold, Ashland

DSM Resins’ strategy• Coating Resins: Be global No 1. in Specialty resins

through innovation, focus and dedication.• Composite Resins: Leading the composite resins industry

through dedication and innovation

Manufacturing details• Coating Resins: United States (Illinois, North Carolina,

Indiana, Massachusetts, Rhode Island), China, Japan, Germany, Spain, UK, the Netherlands

• Composite Resins: China, France, Italy, UK, the Netherlands and Spain

Key raw materials / intermediates• Glycols, styrene, maleic-, phthalic anhydride, acrylates,

isocyanates, acrylic monomers

Production Facilities• USA• Netherlands, France, Italy,

Germany, Spain, UK• China, Taiwan, Japan

Main Sales Offices• China• Netherlands• Switzerland• US• Various local sales offices

Ben van KootenPresident

Innovation Strategy• Investment to create & execute innovation pipeline• Market-driven dedicated organization• Sustainable innovations: providing solutions to global

societal issues

Key Innovations• DeSolite Supercoatings™: the newest generation of optical

fiber coatings, with improved microbend sensitivity• UVolve® instant floor coatings• UVaCorr™ new class of UV corrosion coatings for Tube &

Pipes• DECOVERY™ new range of high performance, eco-friendly

waterborne resins and waterborne 2-component resins• Hybrane™ toolbox resins for oil fields and coatings and

adhesives• Uralac® HiTone: excellent flow and leveling, powder resins• Uralac® Corres: new anticorrosion powder resins for metal• Uralac® Easycure low temperature cure powder resins• Atlac® Ecoat and Daron® turane structural resins families

with improved properties

DSM Resins

32

Polymer IntermediatesThe Polymer Intermediates cluster consists of DSM Fibre Intermediates. DSM Fibre Intermediates produces caprolactamand acrylonitrile, which are raw materials for synthetic fibers and plastics. Other products include ammonium sulfate,afertilizer, diaminobutane, sodium cyanide and cyclohexanone.

Business Clusters

2008 Sales by Destination (%)

2008 Sales by End-Market (%)

36

1

26

37

Europe

Americas

Asia

RoW

40

15

37

8

Fibers &TextilesE&E

Transport/AutomotiveOther

33

Business Clusters

Market growth 2008-2012• Global growth of caprolactam / acrylonitrile ~ 1-2% / year• Regional:

• Strongest growth in China /Taiwan ~ 5% / year• US and Europe relatively stable

• Growth of PA6 end-markets

Main customers• Caprolactam: manufacturers of PA-6 products• Acrylonitrile: manufacturers of acrylic fibers, ABS/SAN,

acrylamide, adiponitrile.

Main competitorsCaprolactam: BASF, Honeywell, UBE, CPDC, Sinopec,Sumitomo, Lanxess

Acrylonitrile: Ineos, Lucite, Solutia, Cytec, Asahi

Current DSM market positionCaprolactam: global leadership

~20% of global market share

Acrylonitrile: European leadership~ 25% of European market share

DSM Fibre Intermediates Global Leadership

Key drivers of profitability• Growth (applications / Asia)• Utilization rates• Volatility of raw material prices

Key success factors of DSM Fibre Intermediates• Low cost operations• Security of sales (excellent global coverage)• Reliable supply, consistently good product quality• Technology leadership

OilGas

PhenolCyclohexaneAmmonia

CaprolacamAcrylonitrile

PolyamidePA6, PA46

OEM(parts)YarnsFilms

AutomotiveE&E, Films,TextilesCarpets

MarketsCaprolactam, with a total global demand of some 4,500kt (merchant and captive) in 2008, is used predominantly for polyamide 6, a high performance polymer, used in:• Textiles (lingerie, sportswear, leisurewear,

fashion wear, parachutes, umbrellas, tents, luggage, sleeping bags)

• Floor coverings (carpets, rugs)• Industrial yarns (biasply tyres, conveyor belts,

mechanical rubber goods, ropes, nets, fishing lines,tarpaulins)

• Engineering plastics: Automotive (air-inlets, enginecovers), E&E (switches, connectors), equipmenthousings

• Films (food packaging, industrial packaging)

Acrylonitrile’s main applications are textiles, building & construction (acrylic fibers), automotive and E&E (ABS, adiponitrile), water purification (acrylamide)Ammonium sulfate is mainly used as fertilizer, sodium cyanide is used in detergents and in vitamins synthesis, diaminobutane is an intermediate for Stanyl®

Most attractive markets• Polyamide 6 for E&E, automotive and food packaging• Asia, mainly China, Taiwan

About DSM Fibre IntermediatesWith plants in the Netherlands, the United States and China, DSM Fibre Intermediates is the largest merchant caprolactam producer in the world, with a market share of 20%. With a market share of 25%, DSM is a major player in the merchant acrylonitrile market in Europe. In addition, the business group produces ammonium sulfate, sodium cyanide and diaminobutane.

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Innovation StrategyFocusing on process innovation, increased efficiency, reduction of footprint, alternative green processes.

Key Innovations•HPO plus technology for caprolactam•Capro recycling•Green caprolactam

DSM Fibre Intermediates

DSM Fibre Intermediates’ strategyRetain global leadership in caprolactam with production facilities on three continents, in close cooperation with DSM Engineering Plastics (for which caprolactam is an important intermediate). Grow in China by expanding our caprolactamproduction capacity in China using our newest HPO plus technology. In acrylonitrile: maintain sustainable position as one of the leading players in Europe.

Main competitive advantagesIntegration with Engineering Plastics, global presence, cost leadership, only global producer in fast growing China, reliable partner.

Manufacturing details of DSM Fibre Intermediates• Caprolactam > 600 kt total

(Geleen, Netherlands; Nanjing, China; Augusta, US)• Acrylonitrile (Geleen, NL) 275 kt• Sodium cyanide 28 kt• Ammoniumsulfate 1200 kt

TechnologyDSM has proprietary world-class caprolactam technologies (HSO, HPO, HPOplus, Anone), with multiple licensees worldwide.

Key raw materials / IntermediatesCyclohexane or phenol, ammonia for caprolactamAmmonia and propylene for acrylonitrile

Main capex planned• Gradual de-bottlenecking Nanjing to 200kt Acrylic-fibers for

Windmill bladesAcrylamide for

Waste water treatment

Production FacilitiesCaprolactam:• DNCC Nanjing, China• Chemelot, Netherlands• Augusta, USAcrylonitrile:• Geleen, Netherlands

Main Sales Offices• Sittard, Netherlands• Augusta, US• Nanjing, China• Shanghai, China

Ed SheuPresident

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Base Chemicals and MaterialsThe Base Chemicals and Materials cluster consists of DSM Agro, DSM Melamine, DSM Elastomers, and a number of activities that have been carved out from other clusters.

Business Clusters

DSM Agro

DSM Agro is a producer of ammonia and high nitrogen fertilizers for grasslands and agricultural crops. DSM Agro is the market leader in the Netherlands and ranks among the market leaders in Germany, France and Belgium. DSM Agro operates production sites at Sittard- Geleen and – until 2010 – IJmuiden in the Netherlands. DSM Agro sells about 2.4 million tons of fertilizers per year, which is including a part of the ammonium sulfate produced by DSM Fibre Intermediates. DSM Agro also produces products that serve as raw materials for products of other DSM business groups.

DSM Elastomers

With a market share of around 16%, DSM Elastomers is one of the global market leaders in EPDM (Ethylene Propylene Diene Monomer) rubber under the brand name Keltan®. It is also the number two player in the market for EPDM-based – fully vulcanized – thermoplastic elastomers(TPVs). DSM sells these TPVs under the brand name Sarlink®. Production plants for Keltan® are based in Geleen(Netherlands) and Triunfo (Brazil). Plants for Sarlink® are found in Genk (Belgium) and Leominster, Massachusetts (United States). Keltan® EPDM is used in cars and other transportation vehicles, white goods, various industrial products and construction materials and as motor-oil additives. It is also used as a waterproof covering for roofs.

DSM Melamine

With a market share of close to 20%, DSM Melamine is the global market leader. The main application of melamine is in wood-based panels and laminates used for furniture and flooring. It is also used in car paints, durable plastic tableware and flame retardants. The growing number of consumers in emerging economies, notably China, is driving demand. Melamine is used in impregnating resins and adhesive resins for the wood-processing industry. It boosts the scratch, moisture and heat resistance of wood products. Melamine can be combined with softwood from rapidly growing trees to obtain high-quality panels that can replace hardwood.

The growing scarcity of hardwood is boosting the use of melamine. Stricter legislation on emission of formaldehyde is expected to have a positive impact as well. The product is also used in paper money, lipstick, glossy magazines, ice hockey sticks and printed textiles. The bridge that links Sweden and Denmark across the Øresund contains MelaminebyDSM™ to improve concrete flow characteristics.DSM Melamine has plants in Geleen (Netherlands), Pinglu and Jishan (China), and Bontang (Indonesia). The Chinese melamine is produced by Shanxi FengHeMelamine Co. Ltd. (DSM 49%). The plant in Indonesia is a joint venture with P.T. Pupuk Kalimantan Timur and P.T. Barito Pacific Lumber Company.

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Five-year summary

Balance sheet

Balance sheetx € million 2008 2007 2006 2005 2004

AssetsIntangible assets 1,200 1,037 1,008 1,003 453Property, plant and equipment 3,641 3,440 3,655 3,750 3,811Deferred tax assets 392 346 496 533 492Prepaid pension costs 137 1,169 918 478 166Associates 19 20 26 43 78Other financial assets 176 126 100 189 82Non-current asset 5,565 6,138 6,203 5,996 5,082Inventories 1,765 1,547 1,515 1,535 1,348Receivables 1,632 1,687 1,739 1,597 1,556Financial derivatives 86 83 79 36 244Current investments 4 4 3 5 6Cash and cash equivalents 601 369 552 902 1,261

4,088 3,690 3,888 4,075 4,415Assets held for sale - - - 43 -Current assets 4,088 3,690 3,888 4,118 4,415Total assets 9,653 9,828 10,091 10,114 9,497

Equity and liabilitiesRoyal DSM N.V. Shareholders' Equity 4,633 5,310 5,784 5,501 4,668Minority interests 62 73 71 67 22Equity 4,695 5,383 5,855 5,568 4,690Deferred tax liabilities 122 344 383 219 134Employee benefits liabilities 314 273 304 383 378Provisions 190 170 188 166 284Borrowings 1,559 1,560 907 1,381 1,497Other non-current liabilities 65 35 44 53 60Non-current liabilities 2,250 2,382 1,826 2,202 2,353Employee benefits liabilities 33 9 21 23 39Provisions 82 91 127 220 219Borrowings 734 192 607 329 527Financial derivatives 179 42 41 65 59Other current liabilit ies 1,680 1,729 1,614 1,699 1,610

2,708 2,063 2,410 2,336 2,454Liabilities held for sale - - - 8 -Current liabilities 2,708 2,063 2,410 2,344 2,454Total equity and liabilities 9,653 9,828 10,091 10,114 9,497

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Five-year summary

Income Statement

Income statementx € million 2008 2007 2006 2005 2004

Net sales 9,297 8,757 8,380 8,195 7,832Operating profit plus depreciation and amortization (EBITDA) 1,357 1,247 1,274 1,311 1,067Operating profit (EBIT) 903 823 834 808 562Net finance costs (102) (75) (81) (70) (56)Income tax expense (196) (183) (198) (180) (103)Share of the profit of associates (3) (2) 1 (2) 9Net profit before exceptional items 602 563 556 556 412Net profit from exceptional items (31) (129) (4) (36) (142)Profit for the year 571 434 552 520 270Profit attributable to minority interests 6 (5) (5) 7 23Net profit attributable to equity holders of Royal DSM N.V. 577 429 547 527 293Net profit attributable to holders of cumulative preference shares (10) (10) (10) (16) (22)Net profit used for calculating earnings per share 567 419 537 511 271

Capital employed 6,558 5,982 6,303 6,221 5,558Capital expenditure:Intangible assets and Property, plant and equipment 587 475 457 401 348Acquisitions 152 93 44 57 30Disposals 27 52 165 222 28Depreciation and amortization 454 424 451 567 613Net debt* 1,781 1,338 921 832 339Dividend 204 214 197 207 190Employee benefits costs 1,465 1,389 1,332 1,385 1,411Ratios*Net sales / aver. cap. employed 1.48 1.43 1.34 1.34 1.34Current assets / current liabilit ies1.51 1.78 1.61 1.76 1.80Equity / total assets 0.49 0.55 0.58 0.55 0.49Gearing (net debt / equity + net debt) 0.28 0.20 0.14 0.13 0.07EBIT / net sales in % 9.7 9.4 10.0 9.9 7.2*To enhance comparability the net debt and ratios for 2004 do not include the impact of the temporary reclassification of cumulative preference shares A.

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Five-year summary

DSM Share

Information about ordinary DSM shares*Per ordinary share in € 2008 2007 2006 2005 2004

Net profit before exceptional items 3.64 3.07 2.85 2.82 2.09Net profit 3.45 2.35 2.83 2.68 1.41Cash flow 6.20 5.56 5.21 5.65 4.52Royal DSM N.V. Shareholders' equity 27.12 30.42 30.03 27.59 25.19

Dividend: 1.20 1.20 1.00 1.00 0.875-Interim dividend 0.40 0.33 0.33 0.29 0.290-Final dividend 0.80 0.87 0.67 0.71 0.585

Pay-out including dividend on cumulative preference shares as % of net profit before exceptional items 36 35 38 33 45Dividend yield (dividend as % of average price of an ordinary DSM share) 3.9 3.3 2.9 3.4 4.3

Share prices on EuronextAmsterdam:-Highest price 41.27 39.87 39.70 35.22 23.85-Lowest price 15.76 31.63 28.58 23.07 17.88-At 31 December 18.33 32.33 37.43 34.50 23.81

(x 1000)Number of ordinary shares outstanding:-At 31 December 162,227 166,897 184,850 190,923 191,957-Average 164,196 178,541 189,550 190,783 191,617Daily trading volumes on Euronext Amsterdam:-Average 1,783 1,590 1,301 1,063 1,014-Lowest 152 94 267 238 26-Highest 5,894 11,347 5,268 6,563 6,494

* On 5 September 2005 DSM effected a share split on a two-for-one basis (two new shares for one old share) in order to increase the liquidity of the DSM share. The data regarding the number of shares and earnings per share in the overview have been presented as if the spliting of the ordinary DSM shares had taken place prior to all periods presented.

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Disclaimer

DISCLAIMER

This document 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.Examples of forward-looking statements include statements made or implied about the company’s strategy, estimates of sales growth, financial results, cost savings and future developments in its existing business as well as the impact of future acquisitions, and the company’s financial position. These statements can be management estimates based on information provided by specialized agencies or advisors.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 the company's actual performance and position to differ materially from these statements. These factors include, but are not limited to, macro-economic, market and business trends and conditions, (low-cost) competition, legal claims, the ability to protect intellectual property, changes in legislation, changes in exchange and interest rates, changes in tax rates, pension costs, raw material and energy prices, employee costs, the implementation of the company’s strategy, the company’s ability to identify and complete acquisitions and to successfully integrate acquired companies, the company’s ability to realize planned disposals, savings, restructuring or benefits, the company’s ability to identify, develop and successfully commercialize new products, markets or technologies, economic and/or political changes and other developments in countries and markets in which DSM operates.As a result, DSM’s actual future performance, position and/or financial results may differ materially from the plans, goals and expectations set forth in such forward-looking statements.DSM has no obligation to update the statements contained in this document, 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, a copy of which can be found on the company's corporate website, www.dsm.com.

Royal DSM N.V. Factbook, September 2009

Life Sciences and Materials Sciences

DSM at a glance

Addresses:

DSM Investor RelationsP.O.Box 6500, 6401 JH HeerlenThe NetherlandsTel: +31 45 578 2864Fax: +31 10 459 0275E-mail: investor.relations@dsm.com

DSM Media RelationsP.O.Box 6500, 6401 JH HeerlenThe NetherlandsTel: +31 45 578 2421Fax: +31 45 574 0680E-mail: media.relations@dsm.com

www.dsm.com