This presentation outlines how DSM’s corporatestrategy – DSM in motion: driving focused growth –will be driven through our pharma cluster.

DSM has made considerable progress in addressingthe challenges that it faces in both its Anti-Infectives(DAI) and Pharmaceutical Products (DPP)businesses, and has created a solid foundation onwhich to grow and develop. To accelerate thisgrowth, DSM continues to investigate opportunitiesin partnering with ambitious companies in the highgrowth economies.

4.1

• The pharmaceutical market in general isstruggling with a range of quickening trends anddynamics that question existing business modelsand are leading to some fundamental changes inthe industry.

• The patented pharma market’s challenges arewell documented. It is becoming ever harder todiscover new active molecules with sufficientadditional patient benefits and an acceptable riskprofile – and which the FDA and other regulatorybodies are prepared to approve. This perfectstorm of developments is calling into question the‘blockbuster model’: costs are rising at the sametime as all health service providers –governments or insurance companies – are underenormous pressure to reduce cost. Medicines arebecoming an increasing element of healthcarecosts, typically accounting for around 10% of totalhealthcare spend. As a consequence, bothgovernments and insurance companies arelooking to save by going ’out to tender’ for drugsupply contracts, explicitly searching for thelowest cost.

• At the same time, the industry is facing a ’patentcliff’: it is estimated that $260bn worth of saleswill go ‘off patent’ in the next 5 years. This is

reflected in the steep growth of generic sales inboth developing and developed markets,including emerging ’bio-similars’. Latest estimatesindicate that generics and bio-similars will risefrom 10-12% of global spending on medicines to15% by 2015.

• The implications of all this are profound.Pharmaceutical companies are consolidating,reviewing their business models and productranges, and competing to develop increasingly’niche’, narrow spectrum and specialized drugs,often ’difficult to administer’ drugs and bio-pharmaceuticals used only in hospitals. Whilstthese can be high value, volumes are lower.

• At the same time pharmaceutical companies arealso pursuing the opposite: high volume, lowervalue opportunities in High Growth Economies.

• In response, many Western pharma companieshave sought partnerships with low-cost countryproducers, with whom they can manufacture andmarket branded generic options, and focus onoutsourcing. Also, the general importance ofmanufacturing and supply chain costs as a sourceof margin improvement for pharma companieshas become much more prominent.

4.2

• The changes in the industry present attractivegrowth opportunities for DSM.

• The intensity of cost pressure and openness toreview business models across the industry islikely to mean above-GDP growth in the pharmaoutsourcing market. We see an increasing trendtowards outsourced manufacturing, particularlyfor drugs nearing their end of (patented) lifecycle. The imperative to rationalize assets willlead to greater focus on finding experienced andhighly qualified partners to optimize the valuechain.

• Anti-infectives are a fast growing class of drugs inthe High Growth Economies, with the ß-lactamsclass – DSM’s area of leadership – accounting formore than half of the current $36bn market. Ashealthcare coverage and quality expands in thesecountries, DSM sees attractive growth – around5 – 7% per year – coupled with an increasingfocus on quality. DSM is seen as an industryleader with clear market advantages,communicated via the DSM Puractives™ brand.

• The DSM Puractives™ brand covers a range ofhigh-quality semi-synthetic penicillins and

cephalosporins, produced via innovativeenzymatic technology, which consists ofPurimox® (Amoxicillin Trihydrate), Purilex®

(Cephalexin) and Puridrox® (Cefadroxil).

4.3

• DSM’s pharma revenue is alreadydisproportionately large in Asia – giving thecompany a clear head start in the world’s fastestgrowing markets for pharmaceuticals in general,and anti-infectives in particular. This marketcurrently represents only about 6-7% of totalglobal pharmaceutical spend, but is estimated torise to 20% by 2020 (Source: Credit Suisse/IMS).We are well positioned to take advantage of this.

• DSM has already established a significantfootprint in Asia, with its anti-infectives businesshaving two production sites in China and one inIndia, supported by a network of sales offices.

• In total, DSM’s Pharma cluster sales of around€700m represents around 8-9% of total DSMrevenue in 2009.

4.4

• The central tenet of our optimism in anti-infectives is that we are global market leaders inß-lactams, which are the biggest class of activepharmaceutical ingredients (APIs) in anti-infectives.

• DSM’s anti-infectives business does not sellpenicillin (PEN), but manufactures, for the mostpart, ß-lactam intermediates using proprietarybiotechnology, which gives DSM leadership interms of both costs and in sustainability: itreduces energy use and minimizes the need forsolvents. Consequently emissions and costs areconsiderably lower than with conventionaltechnology. The scheduled opening of the new 6-APA plant in China at the end of 2011 willmark the completion of this technology rolloutacross the entire global production footprint.

• In combination with high-quality production anda strong commitment to health and safety, thishas created a strong brand positioning for DSM inthe anti-infectives marketplace.

4.5

• Over the past few years, DSM has decisivelytackled the challenging issues that werehampering its AI business. The tough butnecessary decisions to rationalize the siteportfolio have been taken, and by 2011 DSM willhave completed shifting its asset base eastwardswith the opening of a new 6-APA plant. Not onlywill this significantly increase DSM Anti-Infectives’ exposure to High Growth Economiesin line with the DSM corporate strategy, it willalso make the business less dependent onexternal penicillin sources.

• DSM’s new plant was granted a permit by theChinese authorities, despite the fact that there isalready over-capacity in China and India, becausethe authorities recognized that DSM will produceat significantly enhanced sustainability standardscompared to some domestic players who areoperating older, less efficient and, in some cases,highly polluting plants.

• DSM is aware that, in order to capture the fullvalue of these advances, it also needs to addressrejuvenation of its product range, which meansthat today it is still missing out on significantopportunities. Furthermore, DSM recognizes theneed to improve its position in the value chain byexpanding into final dosage forms.

4.6

• Following DAI’s transformation, DSM believes itis ready to grow this business again. Growth willcome from market share gains in the presentbusiness scope by adding differentiated, higher-value specialty products to the product range:one example is a special grade of Purimox® fordirect compression in combination withClavulanic acid, which means that the customerhas significantly fewer steps in making the tablet,and DSM realizes a significant price premium atminimal additional costs. Moreover, DSM willgrow its portfolio of APIs and, in certain regions,also forward integrate into final dose (FD)products and, additionally, provide the regulatoryapproval support (dossiers), that customers need.

• In effect, this means DSM taking a final dosageform all the way through design, testing andapproval in certain markets, and then ’white box’(private label) supply that product, to be brandedand sold by its customers. Alternatively, approveddossiers will be licensed to third parties.

• As a result, DSM will create a more powerfuloffering to the marketplace, and, by creatinghigher value business based on our own penicillinsupply, we will be much less exposed to PENprice cycles.

4.7

• In 2007, DSM announced that it intended topursue a partnership strategy for DAI, with astrong focus to strengthen DAI’s position in 6-APA and China. After the discontinuation of thepartnership discussions with NCPC, DSM hasplanned and implemented the range of actionsoutlined previously to improve its business and itsintrinsic long-term prospects.

• The result of this work is that DSM’s anti-infectives business, complete with the new 6-APAplant in China, could grow successfully under itsown steam.

• However, it is still clear that growth and profitimprovement in DAI would be accelerated if wewere to participate in the inevitable industryconsolidation that is beginning in China andIndia. This would allow us to maximize the valueof our technology and grow market share bybringing high-quality, high-value and sustainableproducts to fast growing markets.

• We therefore continue to seek a partner, and arehaving purposeful discussions with interestedcompanies in China and India to this effect.

4.8

• The same global trends as outlined earlier are alsoimpacting our Pharmaceutical Products business,bringing rapid change to the pharmaceuticaloutsourcing market. Whilst on the one handoutsourcing is becoming increasingly common,the business remains inherently volatile.Customer demand fluctuates, sometimes quiteviolently, as they take production back in houseseeking to fill their own capacity, or see plannedproduction phases delayed by the FDA or becauseof other business challenges. The rise of Easterncompetitors is particularly keenly felt.

• There has been a sharp increase in outsourcedmanufacturing to the High Growth Economies,although this has tended to remain at the level ofingredients (now moving towards regulatedactive ingredients) rather than final dosageproducts. As a result, a number of new entrantshave come into the industry over the past fewyears.

• Finally, the changing nature of global regulationsis creating increased opportunities for bio-similarand bio-better production.

• This market context has fundamentalimplications for our Pharmaceutical Productsbusiness. The biggest opportunities now liewhere our pharma customers expect the greatestcost pressure, that is, innovative drugs nearingthe end of their patent protection and support inrationalizing supply chains.

4.9

• Despite the presence of toughening marketconditions, DPP retains several key strengthswhich are important in determining our futurestrategy.

• We are recognized as a trusted and high qualityprovider, with an excellent track record inregulatory affairs and with outstanding R&D andmanufacturing capabilities. More than this, ourcustomers see us as understanding well theintricacies of technology transfer and assetoptimization.

• All of these strengths mark us out as a leadingplayer in the outsourcing market able tosuccessfully manage and deliver complexmanufacturing solutions – in other words we arenow a quality leader in a market that is moredriven by cost.

• It is undeniable that DPP’s business model (100%contract manufacturing) and cost position iscurrently out of step with market needs, leadingto unsatisfactory results.

4.10

• These disadvantages in the marketplace are beingdeterminedly addressed.

• We will further optimize our current assets andre-focus them towards new customerrequirements. That essentially means re-balancingtowards lower cost assets in the High GrowthEconomies.

• We have also reviewed our value proposition.Our strength lies in being able to operate as atruly strategic supply chain partner, able toharness a full range of tools and experiences tosupport our customers.

• The inherent volatility of the CMO businessmodel makes optimizing asset utilization verychallenging. In order to address this, DSMintends to significantly expand its range of ownproducts.

• This must be DSM’s focus moving forward.

4.11

• As with our AI business, DSM believes it willdrive positive results most rapidly if it partnerswith another company which has strengthscomplementary to its own.

• DSM is in the process of selecting partners whofulfill the criteria of being successful, establishedplayers in High Growth Economies, having theirown portfolio of generics (across both activeingredients and final dosage) and productdevelopment capabilities, and who will bring alsothe right go-to-market networks. Additionally,such a partnership would help ensure much moreoptimal use of assets, given the increase inproduct range.

• The combination of this with DSM’s quality andtechnology, and its Western-based customernetwork, will ensure that both parties can growsales via an increased number of relationships andbe better prepared to take advantage of thegrowth in the outsourcing market outlinedearlier.

4.12

• DSM Biologics is a global provider ofmanufacturing technology and services to thebiopharmaceutical industry. In addition tooffering world-class manufacturing services, DSMBiologics also provides and develops technologiesrelevant for optimized mammalian cell cultureprocesses. A good example is the proprietaryXD™ Technology for recombinant proteins andantibodies, which, together with DSM’s Rhobust®

system for downstream processing, leads to veryhigh yields and reduced manufacturing costs.

• In May 2010 DSM announced a partnership withthe Australian Governments (Queensland StateGovernment and the Commonwealth ofAustralia) to design, build and operate the firstmajor Australia-based mammalianbiopharmaceutical manufacturing facility, whichwill be located in Brisbane.

• This ‘factory of the future’ is the first of its kind,and will offer commercial-scale mammalian processdevelopment and cGMP clinical and commercialmanufacturing services, continuing and expandingthe services we currently provide out of our small-scale production facility in Groningen(Netherlands). It will be operational in 2013.

• The innovative biologics market in 2010 isestimated to be around $100bn. With a CAGR ofaround 12%, this extremely fast-growing marketis expected to be around $200bn in 2015.

• There are a number of major biologics which arenow coming off patent, but at present noregulatory pathway exists for "bio-generics" dueto the perceived complexity of product qualitycontrol. As a result, an increasing number ofcountries and regions – including the EU,Australia, Canada, and Japan, with USA expectedto follow soon – have established a "bio-similar"registration route, entailing extensive clinicaltrials for these products. Several bio-similars arealready on the market in the EU.

• Market estimates are highly uncertain due touncertainty in pricing and market acceptance (nosubstitution at pharmacy allowed): range $2-10bnin 2015 (Source: Credit Suisse/Datamonitor) to>$20bn in 2020.

4.13

4.14

5.21

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 andprojections 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 aswell as the impact of future acquisitions, and the company’s financial position. These statements can bemanagement estimates based on information provided by specialized agencies or advisors.

DSM cautions readers that such statements involve certain risks and uncertainties that are difficult topredict and therefore it should be understood that many factors can cause the company's actualperformance 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 andcomplete acquisitions and to successfully integrate acquired companies, the company’s ability to realizeplanned disposals, savings, restructuring or benefits, the company’s ability to identify, develop andsuccessfully commercialize new products, markets or technologies, economic and/or political changes andother 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 fromthe 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. TheEnglish 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’slatest Annual Report, a copy of which can be found on the company's corporate website, www.dsm.com

5.22

3P Triple P (People, Planet, Profit)6-APA 6-amino-penicillanic acid ACN AcrylonitrileAcq. acquisition7-ADCA 7-amino-deacetoxycephalosporanic

acid AGM Annual General Meeting of

ShareholdersAM Advanced ManufacturingANH Animal Nutrition & HealthAPI Active pharmaceutical ingredientsBF Bio-Fuelbn billionbps Basis Points BC&M Base Chemicals and MaterialsBoP Base of the PyramidCAGR Compound Annual Growth RateCAPEX Capital ExpendituresCEO Chief Executive OfficerCFO Chief Financial OfficerCFROI Cash Flow Return On InvestmentcGMP current good manufacturing practiceCHF Swiss FrancCMO Contract Manufacturing OutsourcingCOS Cost of SalesDAI DSM Anti-InfectivesDBM DSM BioMedicalDBPS DSM Bio-based Products & ServicesDD DSM DyneemaDEC DSM Expert CenterDEP DSM Engineering PlasticsDFI DSM Fibre IntermediatesDFS DSM Food SpecialtiesDivest. DivestmentDJSI Dow Jones Sustainability IndexesDNP DSM Nutritional ProductsDPP DSM Pharmaceutical ProductsDR DSM ResinsE&E Electrical & Electronic IndustryEBA Emerging Business AreaEBIT Earnings before Interest and TaxesEBITDA Earnings Before Interest, Taxes,

Depreciation and Amortization ECO+ The Greenhouse DialogueEDPM Ethylene Propylene Diene MonomerEPS Earnings per ShareEU European Unionadj. FfO Adjusted Funds from OperationsFD Finished dosage / final doseFDA Food and Drugs AdministrationFOOP Fixed Out of Pocket costsFX Foreign Exchange (exchange rates)G&A General and AdministrativeGDP Gross Domestic ProductGHG Greenhouse GasGRI Global Reporting Initiative

GUR Global Utilization RateHNH Human Nutrition & HealthICT Information and Communication

TechnologyInno center Innovation CenterIFRS International Financial Reporting

StandardsIP Intellectual propertyJV Joint Venturekt kilotonKPI Key Performance IndicatorsLATAM Latin AmericaLS&MS Life Sciences and Materials Sciencesm millionM&A Merger & AcquisitionsM&S Marketing and SalesMB Managing BoardMCC Mitsubishi Chemical CorporationNCPC North China Pharmaceutical

CorporationNPC Nylon Polymer Company LLCOWC Operating Working Capitalp/a per annumPA6 Polyamide 6PBT Polybutylene terephtalatePEN PenicillinPET Polyethene terephtalatePTG The Polymer Technology GroupP&L Profit and LossR&D Research and DevelopmentROCE Return on Capital EmployedSBB Share Buy-BacksTPV Thermoplastic VulcanizateTriple P Triple P (People, Planet, Profit)TSR Total Shareholder ReturnUD Unidirectional UHMwPE Ultra-High Molecular Weight

PolyethyleneUS United States (of America)USA United States of AmericaUSD United States DollarUS$ United States DollarWACC Weighted average cost of capitalWTO World trade Organization

Abbreviation ExplanationAbbreviation Explanation