DSM Firmenich (DSFIR) investor relations material

Executive summary

• Achieved 5% like-for-like sales growth in H1 2026 and 6% in Q2, driven by volume increases and improved customer sentiment across all business units.

• Adjusted EBITDA margin improved sequentially, reaching 19.3% in H1 and 19.5% in Q2, with positive momentum expected into H2.

• Core adjusted EPS rose 14% year-over-year to €1.84, with adjusted gross operating free cash flow up to €320 million (7% of sales).

• Strategic action plan and cost savings program are on track, targeting €100 million in savings and a reduction of about 1,000 positions.

• Dual listing on SIX Swiss Exchange completed in May 2026, with a €500 million share buyback program underway and over 60% completed by mid-year.

Financial highlights

• H1 2026 sales from continuing operations reached €4,664 million, up 5% LFL; Q2 sales were €2,388 million, up 6% LFL.

• Adjusted EBITDA for H1 was €900 million (+7% LFL); Q2 adjusted EBITDA was €466 million (+10% LFL), with margins at 19.3% in H1 and 19.5% in Q2.

• Adjusted EPS increased by 14% year-over-year to €1.84.

• Core adjusted ROCE improved to 11.6% (+20bps year-over-year).

• Adjusted gross operating free cash flow rose to €320 million in H1, with operating working capital at 27.9% of sales.

Outlook and guidance

• Full-year 2026 outlook unchanged: organic sales growth expected at the higher end of the 2-4% target, with adjusted EBITDA margin guidance around 20%.

• Cash conversion (adjusted gross operating free cash flow to sales) targeted at 11-12%.

• Margin expected to step up to 21% in 2027, with further improvement from cost programs and easing FX headwinds.

• Net debt expected to normalize to 1.9x EBITDA by year-end, supported by strong H2 cash flow.

• Capex expected at 6.5% of sales in 2026, normalizing to 5% in 2027.