A5 While the direct impact on DSM business is limited, we have observed a certain degree of impact on consumer confidence, which has a predominant influence on automotive and electronic industries, and to a lesser extent on nutrition and health. At DSM, we embrace globalization and advocate fair and open trade between companies and countries.

We believe that globalization builds on the core element of our economy: an exchange (trade) of specialization of competences. It has brought prosperity to many countries in the world and billions of people. However, perhaps not all countries or all people in all countries. We don't believe protectionism is the right answer. Instead we should make the benefits of globalization available to all people, like the Chinese government is trying to do.

We believe China and the United States are important markets for the development and growth of the global economy, which is why we are doing everything we can to participate in business development in both countries.

A6 These policies show that China is committed to further opening the nation's economy and connecting the country to the world while encouraging open collaboration and synergy through more inclusive and diversified relationships. DSM will take advantage of this opportunity to optimize our operations in China. We will keep up our investments to better provide high-quality, sustainable and innovative solutions. DSM recently invested to upgrade its Jiangshan vitamin C facility (in Jiangsu province) to improve quality, safety, sustainability and production efficiencies and we are always looking for opportunities to continue fulfilling our commitment to China.

A more open market also offers DSM the opportunity to jointly innovate with local partners to cope with increased market demand. Since China has become one of the largest markets in food enzymes, DSM has established joint ventures with Chinese partners to innovate and develop food enzymes to further meet market demand and enhance global leadership in the industry. Also the Belt and Road Initiative builds on a more open and collaborative economic growth model.

A7 China is leading the world in many technological aspects. Digitalization is a good example. DSM benefits from the digitalization process. For instance, riding on these technology trends, we have built online platforms that connect us closer to customers. But we are also enablers of this technology as we provide world-leading solutions for base stations to meet demand for fast transmission.

Another aspect in which China is leading the world is sustainability technology. As green composite materials gain more market recognition in China, new materials with their strong functionality and low carbon emissions will become the mainstream choice in the Chinese market. DSM is also paying close attention to other new technologies. DSM has invested heavily in photovoltaic power generation materials and regards them as important business areas in the future.