Slide 1: Full-Year Results 2023
Full-Year Results 2023 Investor and Media Conference February 16, 2024 Delivering Growth – in Asia and Beyond. Page 1
Slide 2: Agenda
Agenda 1. Highlights FY 2023 2. Business Units Review 3. Financial Update 4. Outlook Page 2
Slide 3: Highlights FY 2023
1 Highlights FY 2023 Page 3
Slide 4: FY 2023 Results Underline Continued Value Creation
FY 2023 Results Underline Continued Value Creation DKSH Value Creation FY 2023 Realization FY 2019 - 2023 CAGR4 Achieve above GDP1 Growth net sales growth Net Sales: +5.3% at CER2 +3.3% Core EBIT: +12.6% at CER2 +10.1% Profitability Expand margin Margin 3.0% (+15 bps) (+60 bps) Cash Free Cash Flow:
Slide 5: DKSH Is Moving Forward Value Driving Programs
DKSH Is Moving Forward Value Driving Programs 1 2 3 4 5 High- Business Unit Operational Performance Digitalization Sustainability Strategies Excellence Culture Increased client Strengthened SAP S/4 Hana Focus on operating Sustainability partnerships leadership team integration leverage linked loan •
Slide 6: More Than 80% of M&A Spend on Higher Profitability Business
More Than 80% of M&A Spend on Higher Profitability Business Business Unit / Line FY 2023 Margin2 M&A spend3 since 2019 (in %) 25 acquisitions since 2019 Healthcare Own Brands1 >20% >10% Performance Materials 8.1% >60% Technology 6.8% >10% Group margin Healthcare 2.8% ~5% Consumer Goods 2.3% >10% Res
Slide 7: Continuation of Progressive Dividend Policy
Continuation of Progressive Dividend Policy Ordinary dividend per share (in CHF) 1 2.25 2.15 2.05 1.90 1.95 1.85 1.65 1.50 1.30 1.15 0.95 0.80 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 DKSH proposes an increase of the ordinary dividend by 4.7% to
Slide 8: Business Units Review
2 Business Units Review Page 8
Slide 9: Business Unit Healthcare
Business Unit Healthcare Net Sales (in CHF million) • Accelerated Net sales growth driven by solid business development and strong +6.5%¹ underlying market 5’636.9 5’578.2 o Expansion with existing and new clients in Thailand, Malaysia, Vietnam, etc. • Focus on growing higher added-value FY 2022 FY
Slide 10: Business Unit Consumer Goods
Business Unit Consumer Goods Net Sales (in CHF million) • Net sales growth of 2.2% due to client wins and expansion despite lower consumer +2.2%¹ sentiment and subdued market volumes 3’708.7 3’515.5 • Strengthened beauty care segment with CS&Co. acquisition FY 2022 FY 2023 • Core EBIT at +2.2% (CER)
Slide 11: Business Unit Performance Materials
Business Unit Performance Materials Net Sales (in CHF million) • Sales growth of 6.1% at CER is driven by contributions from M&As +6.1%¹ and our Life Sciences portfolio 1’461.4 1’439.7 • Life Sciences portfolio growing in Asia Pacific and Europe at CER • Strong gross margin increase with disciplined
Slide 12: Business Unit Technology
Business Unit Technology Net Sales (in CHF million) • Double-digit Net sales and Core EBIT growth (in CER) +12.5%¹ 532.6 • Diligently executed strategy and 513.2 continued to grow key areas o Scientific Instrumentation, Precision Machinery, Semiconductor Industry o Consumables and Service business F
Slide 13: Financial Update
3 Financial Update Page 13
Slide 14: FY 2023 – Continued Good Financial Performance
FY 2023 – Continued Good Financial Performance Net Sales Core EBIT Core EBIT Margin Core Profit After Tax Free Cash Flow (in CHF billion) (in CHF million) (in %) (in CHF million) (in CHF million) Cash Conversion (%) +5.3%1 +12.6%1 +15 bps +5.8%1 100.5% 137.0% 11.3 11.1 282.3 329.9 3.0% 319.2 209.5 2
Slide 15: Strong Core EBIT Growth
Strong Core EBIT Growth Net Sales (in CHF million) Core EBIT (in CHF million) 2.1% 3.2% 7.5% 5.1% 329.9 11’320.2 319.2 305.9 11’066.0 (9.2)% (7.3)% +5.3%¹ +12.6%¹ (7.5)% FY 2022 Organic M&A FX FY 2023 FY 2022 Organic M&A FX FYFY 2023 2023 Non-core FY 2023 Core EBIT Core Core EBIT EBIT adj. 2 EBIT Or
Slide 16: Strong Long-Term Performance
Strong Long-Term Performance Net Sales Core EBIT Free Cash Flow (in CHF million) (in CHF million) (in CHF million) CAGR +3.3%1 CAGR +10.1%1 CAGR +15.9% 411.9 282.3 13’161 261.6 12’495 360.8 210.2 209.5 11’958 156.7 11’339 306.6 11’579 329.9 11’320 319.2 11’106 11’066 271.7 10’742 279.9 283.4 257.5 F
Slide 17: Continued Strong Balance Sheet With Significant Leverage Potential
Continued Strong Balance Sheet With Significant Leverage Potential in CHF million FY 2022 FY 2023 Continued strong financial metrics: Cash and cash equivalents 636.4 687.2 Trade receivables 2,030.9 1,840.7 • Strong liquidity position maintained and even improved Inventories 1,277.3 1,138.0 • Continu
Slide 18: Additional Financial Indications
Additional Financial Indications FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Mid-Term Estimate Estimate M&A Further M&A 2.1% 0.8% 1.5% 2.1% 0.5% to 1.5%1 (net sales contribution) ambitions FX (5.1%) (2.0%) (2.6%) (7.5%) (3% to 5%)2 n.a. (net sales contribution) Tax rate 26.1% 27.8%3 27.1% 28.1% 27% to 2
Slide 19: Outlook
4 Outlook Page 19
Slide 20: Outlook
Outlook Current Macroeconomic Landscape Prospects For 2024 and Beyond • Asia Pacific continues to be a key driver of • DKSH committed to deliver GDP+1 sales global growth growth2 (at CER) in fast-growing Asian • Increasing population and growing trade markets activities • Growing tourism trends supp
Slide 21: Appendix
5 Appendix Page 21
Slide 22: EBIT to Core EBITA Bridge
EBIT to Core EBITA Bridge Core EBITA 2023 (in CHF million) 24.4 354.3 7.5 329.9 3.9 0.9 11.7 305.9 FY 2023 Discont. of Goodwill Fair value Share of FY FY23 2023 C. Amortization FY 2023 EBIT fashion retail impairment adj. result in Core EBIT EBIT Core EBITA business associates aCommerce Core EBITA 20
Slide 23: Disclaimer
Disclaimer While this presentation has been prepared by DKSH with due care and based on information it reasonably believes to be accurate, complete and up-to-date on the date hereof, this presentation may be inaccurate or incomplete or contain typographical errors or information that is not up-to-da