Koninklijke DSM N.V. (Royal DSM, commonly known as DSM), is a Dutch multinational active in the fields of health, nutrition and materials. Headquartered in Heerlen, at the end of 2017 DSM employed 21,054 people in around 50 countries and posted net sales of €8.632 billion.^[1]

DSM's 5 business groups are clustered according to product and market combinations, with the business group directors reporting directly to the Managing Board. Since 2015 DSM's activities are grouped into three clusters: Nutrition, Materials and Innovation Center.

The Nutrition cluster is made up of DSM Nutritional Products and DSM Food Specialties. DSM Nutritional Products produces essential nutrients such as synthetic vitamins, carotenoids, nutritional lipids and other ingredients for the feed, food, pharmaceutical and personal care industries. DSM Food Specialties manufactures food enzymes, cultures, yeast extracts, savory flavors, hydrocolloids and other specialty ingredients for the dairy, baking, beverage and savory segments.

The Materials cluster is made up of DSM Engineering Plastics, DSM Dyneema and DSM Resins & Functional Materials. DSM Engineering Plastics’ specialty plastics are used in components for the electrical and electronics, automotive, flexible food packaging and consumer goods industries. DSM Dyneema is the inventor, manufacturer and marketer of Dyneema. DSM Resins & Functional Materials manufacture resins solutions for paints, inks, stereolithography, and industrial and optical fiber coatings.

In addition to the role of supporting innovation in the businesses and DSM's venturing activities, the Innovation Center is responsible for the company's ‘Emerging Business Areas’; DSM Biomedical (biomaterials and regenerative medical devices), DSM Bio-based Products & Services (biomass-conversion technology) and DSM Advanced Solar (AR-coatings and Photovoltaic-films for solar modules).

In November 2015 DSM announced that up to 2018 it was targeting a high single-digit annual percentage increase in EBITDA and a high double-digit annual basis point increase in Return on Capital Employed (ROCE). It will focus on organic sales growth, reducing costs and strict capital allocation and does not expect to engage in large acquisitions in the near future.^[2]

Within its corporate strategy the company also defines long-term sustainability aspirations, which include targets to improve the eco-efficiency of its operations. In November 2015 DSM set the following environmental reduction targets:

Since 2010,^[3] the Short^[1]- and Long-Term Incentive^[1] elements of the remuneration of DSM's Managing Board^[4] and executive bonuses^[5] relate to the company's financial and environmental performance in equal measure. Since 2004^[6] DSM has been either the Materials industry group leader, (7 years) or among the leaders in the annual Dow Jones Sustainability Index.

DSM is listed on Euronext Amsterdam and is a constituent of the AEX index. Options on DSM shares are traded on the European Option Exchange in Amsterdam. In the US, a sponsored unlisted American Depositary Receipts (ADR) programme is provided by Deutsche Bank Trust Co. Americas. These ADR's are listed on the OTCQX International Premier Marketplace.

DSM was formed by the Dutch state in 1902 to mine coal reserves in southern Limburg and although the company had diversified into commodity chemicals and petrochemicals by 1973 when the last mine closed, DSM retains a link to its origins by continuing to use the initials of the original ‘Nederlandse Staatsmijnen’ (Dutch State Mines)^[7] to this day.

During World War II researchers worked on penicillin. The code name Bacinol was used to keep the research secret from the Germans.^[8] The research was done at the company Nederlandsche Gist- en Spiritusfabriek, Dutch Yeast and Spirits Factory, later becoming DSM Sinochem Pharmaceuticals, in Delft.

In 1989 the government floated 70% of its shares in the company on the Amsterdam Stock Exchange (now Euronext Amsterdam) with the remaining 30% floated in 1996, thereby completing DSM's privatization. The 21st century has seen DSM follow successive five-year strategic periods of portfolio transformation and internationalization involving acquisitions, divestments and partnerships.^[9][10] In 2001 48% of DSM's workforce was based in the Netherlands; in 2017 this was 18%.^[1]

DSM has stated that these partnerships have been created with a view to it ultimately exiting the businesses concerned.^[29]

DSM has applied IFRS 11 to its associates and joint ventures since 2013.