Dividends

dsm-firmenich will convene an extraordinary general meeting of shareholders by the end of June 2023 to request its shareholders to approve a dividend to its shareholders of €423m in total, representing approximately €1.60 per DSM-Firmenich Ordinary Share.

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.