L A ‘ AMBIGÜEDAD ’ DE LA VIOLENCIA

DSM workforce at year-end in:

2008 2007 Europe 14,493 14,343 - the Netherlands 7,452 7,219 - rest of Europe 7,041 7,124 Asia 4,793 4,760 - China 3,557 3,564 - rest of Asia 1,236 1,196

North and South America 4,030 3,873

Rest of the world 275 278

Total DSM 23,591 23,254

Passion for People

On the basis of the Vision 2010 strategy, DSM’s human resources strategy Passion for People has been formulated. A key element of this strategy is to help employees to deal successfully with the challenges of a changing company in a fast-moving global marketplace.

The shift towards a Life Sciences and Materials Sciences company means changes not only in the portfolio of activities but also in the way of working, including behavior and culture. A committed workforce is critical to the company in realizing its Vision 2010 ambitions. The concept of employee

engagement is very important in this respect. In 2007 DSM launched its first ever worldwide Employee Engagement Survey, to be repeated on an annual basis. The outcome of this engagement survey has been assessed and has led to a number of focus areas:

Inspirational leadership supported by a new learning architecture

The acceleration of Vision 2010 requires a change in behavior on the part of the employees. This change calls for leaders

External recognition Risk management

Macro-economic environment Financial results

that raise the bar on performance, show accountability, take ownership and demonstrate role-model behavior in the DSM Behaviors, in short, truly inspirational leaders.

Therefore, DSM significantly reviewed its approach to learning and development of the executive and management population in 2008. A new DSM Learning Architecture ensures a stronger alignment with the strategy, focuses on the key drivers for success (external orientation/growth/innovation, a high-performance culture with clear accountability and a sustainable diversity drive), creates a common and coherent concept of learning and program design, facilitates the development of a DSM learning culture and provides enhanced learning for top performers and high potentials. With full support from the Managing Board, DSM invested in the leadership development of top management.

The architecture has been developed in close collaboration with leading international business schools, supported by a diverse internal faculty, primarily consisting of DSM’s top management.

The new programs have a modular set-up with a strong focus on innovative learning methods, such as round-table discussions, business simulations, web-casting, (team) assignments and e-learning. The key building blocks are: Executive Leadership Programs, Management Leadership Programs, Executive & Management Toolkits, Executive Coaching and Functional Learning Programs.

In addition to the improved training and learning programs for DSM executives and managers, all other DSM Business Academy programs are being redesigned and aligned with the change the company is currently going through.

Moving towards a high-performance culture

In 2008 a new career management design was developed. The new design stimulates a high-performance culture, introduces simplified tools and processes, links career management and performance management, gives transparency in career opportunities within DSM, increases global talent visibility and employee engagement and increases ownership and accountability for career development with managers and employees. To prepare for the roll-out, workshops were held in all business groups and staff/support groups, with additional regional training sessions being organized in the Netherlands, China and the United States. The new career management process was introduced in January 2009.

Clear performance-based remuneration of DSM’s people is key in accomplishing the required changes, and the remuneration systems will be adjusted to reflect the

objectives of external orientation, entrepreneurship, creativity and accountability.

Further increasing diversity

The intensified efforts with regard to diversity are paying off. The number of non-Dutch and female professionals entering DSM continues to grow. DSM continued in 2008 to establish a stronger regional recruitment footprint, which enables the company to attract talents across the globe. DSM is strengthening the diversity of the leadership team, not only in terms of gender and nationality but also in terms of leadership style. DSM focuses on selecting leaders with inspiring leadership styles to support the company’s cultural change agenda.

While recognizing the need to attract external talent, DSM also recognizes the need to stimulate existing talent across the company. A new global recruitment management system was designed in 2008, giving employees access to all worldwide DSM vacancies. This will provide greater transparancy concerning career opportunities and will also further internationalize the employee base.

The percentage of non-Dutch members in DSM’s management group increased from 45% in 2007 to 53% in 2008, and the percentage of women in this group increased from 17% to 20% in 2008. DSM attracted in total 486 top talents from across the globe, of whom 77% were non-Dutch and 38% were women.

Throughout 2008 DSM also continued to strengthen its presence in the academic arena by further strengthening its strategic collaborations with universities and key business schools in Europe. Collaborations are also now being initiated with academic institutions in both China and the United States with the aim of further strengthening these relationships in 2009. All activities are designed to boost the talent pipeline, to ensure that DSM is appropriately resourced to retain its position as one of the pioneers in the Life Sciences and Materials Sciences sectors.

Report by the Managing Board