Dividends

Appropriation of available earnings and dividend / distribution of capital contribution reserves:

At the AGM 2024, the Board of Directors will propose a stable dividend of EUR 2.50 in cash per share, to be paid partially (62.7%) out of capital contributions reserves and partially (37.3%) out of available earnings.

• The last trading day with entitlement to receive the dividend is 8 May 2024.
• As from 9 May 2024 (dividend-ex date), the shares will be traded ex-dividend.
• The record date will be 10 May 2024
• The payment date 16 May 2024.

The Board of Directors considers that it is appropriate to propose a dividend that is outside dsm-firmenich’s policy target of between 40%-60% of the total net income, as dsm-firmenich is committed to restoring earnings per share within a reasonable time frame, and since its capital and liquidity allow for the proposed dividend payout.

In its audit report that accompanies DSM-Firmenich AG’s financial statements, KPMG confirms that the proposed payment complies with Swiss law and the Articles of Association.

If the proposal for appropriation of available earnings and distribution of capital contribution reserves is approved, the dividend of EUR 2.50 per share will be paid partially (62.7%) out of capital contribution reserves without deduction of any Swiss withholding tax and partially (37.3%) out of available earnings, with a deduction of 35% Swiss withholding tax.

Depending on the tax status and domicile of the beneficial owner of the dividend, the 35% Swiss withholding tax may be partially credited and/or partially reclaimed.

For more information on reclaim of Swiss Withholding Tax, see:

• Residents Switzerland, Germany 
  
• All other countries 
  
• For the Netherlands (forms related to the double taxation agreement concluded by Switzerland with the Netherlands -Form 81) 

On 29 June 2023, the Extraordinary General Meeting of DSM-Firmenich AG adopted the proposal that a dividend per ordinary share was declared in the amount of €1.60.

The dividend was fully paid out of the Reserves from capital contributions. The dividend payment was paid without deduction of any Swiss withholding tax.

Timeline payment dividend DSM-Firmenich AG

• Publication date           = 29 June 2023 (post EGM)
• Ex-dividend date          = 3 July 2023
• Record date                  = 4 July 2023
• Payment date               = 6 July 2023

dsm-firmenich may declare and pay further dividends in the future. Our Board of Directors will generally consider and propose dividend declarations in February and March of each year – the time when we publish our financial results from the previous year. Our ability and intention to declare and pay dividends in the future:

i) will mainly depend upon dsm-firmenich’s financial position, results of operations, capital requirements, investment projects, the existence of distributable reserves and available liquidity, and such other factors deemed relevant by the Board of Directors, and

ii) is subject to many assumptions, risks, and uncertainties, many of which are beyond dsm-firmenich’s control.

Since we conduct our business through various subsidiaries, associated companies, and joint ventures, the amount of distributable profits depends significantly on these entities generating profits and distributing them to dsm-firmenich.

We intend to retain part of our future profits to fund our ongoing growth and development. We therefore target paying between 40% and 60% of our total net income in dividends to shareholders. Our approach is as follows.

• In case the dividend yield is below or equal to 2%, 50% of the dividend will be paid out of normal reserves or retained earnings and 50% will be paid out of capital contribution reserves.
• Any dividends paid out in excess of a 2% dividend yield will be paid out of capital contribution reserves only (for example, if the yield is 2.1%, there would be a 1.0/1.1 split between retained earnings and capital contribution reserves).
• The dividend yield will be calculated as a percentage based on the average share price of the previous financial year.

We intend to pay dividends annually, provided that the conditions of Swiss law and the relevant provisions of the Articles of Association are met.