Ostasiatiske Kompagni A/s · OMXCOP:OKEAC
Ostasiatiske Kompagni A/s — The East Asiatic Company — Q3 2012 Earnings Presentation
21 slides from Ostasiatiske Kompagni A/s's earnings presentation, Nov 15, 2012
Slide 1: Presentation of Q3 Results 2012
PRESENTATION OF Q3 RESULTS 2012 Presentation by: President & CEO Niels Henrik Jensen Group CFO Michael Østerlund Madsen 15 November 2012
Slide 2: Agenda
AGENDA EAC Group • Group highlights Businesses • Santa Fe Group • Plumrose EAC Group • Key factors impacting Q3 financial reporting • Financial review • Outlook 2012 Disclaimer The outlook for 2012 reflects management’s expectations of future events and must be viewed in the context of the business
Slide 3: Group Highlights
GROUP HIGHLIGHTS • Consolidated revenue driven by price increases in Plumrose and acquisition of Interdean • Difficult macro environments affect business performance • Encouraging underlying trends in both businesses • No further dividends or royalties received from Venezuela during Q3 15 November 2
Slide 4: Santa Fe Group: progress offset by weak market conditions in Australia and Europe
Competitive platform consolidated – progress offset by weak market conditions in Australia and Europe 15 November 2012 4
Slide 5: Executing the Strategy
EXECUTING THE STRATEGY • Integration of Interdean 95 per cent of projects completed – IT platform to be integrated in Q1 2013 • Coordinated sales and marketing activities throughout the Santa Fe Group and increased businesses between Asia, Europe and Australia • Continued double-digit growth in high
Slide 6: Challenging Macro Environments
CHALLENGING MACRO ENVIRONMENTS • Australian mining sector affected by drop in world market prices – Steep decline in demand for long-distance moving services – Successful substitution of revenue, although at lower margins • Asia continues strong performance – More than offset negative synergies from
Slide 7: Moving Services Driven by Interdean Acquisition
MOVING SERVICES DRIVEN BY INTERDEAN ACQUISITION • 45 per cent revenue growth in local currencies (LC) in Moving Services; organic growth of -1 per cent Revenue by business segments in %, Q3 YTD • Australian growth of 1.2 per cent in AUD 2012 3.2 – Double-digit growth in international business 8.0 –
Slide 8: Strong Growth in Relocation Services
STRONG GROWTH IN RELOCATION SERVICES Revenue by business • 104 per cent growth in LC in Relocation Services primarily driven segments in %, Q3 YTD by Interdean acquisition 2012 – Organic growth of 22 per cent in local currencies 8.0 3.2 Moving Services • Slight decrease in Australia Relocation • Sma
Slide 9: Continued Expansion of Records Management
CONTINUED EXPANSION OF RECORDS MANAGEMENT Revenue by business Segments in %, Q3 YTD • High activity level results in revenue growth of 18 per cent in LC 2012 – Volumes up through continued build-up of storage levels 3.2 Moving Services 8.0 • Small operations in Spain and Portugal included in the Int
Slide 10: Income Statement
INCOME STATEMENT • Revenue growth driven by Interdean acquisition – Organic revenue growth of 1.4 per cent in local currencies • EBITDA margin impacted by Australian slowdown and low margins in Europe – EBITDA margin excluding Europe was 7.9 per cent • EBITDA in Europe affected by high revenue share
Slide 11: Outlook 2012
OUTLOOK 2012 • Revenue of around DKK 2.5bn (in line with the previous outlook) • EBITDA margin revised to around 5.5 per cent (around 7.5 per cent in previous outlook) – Demand for Australian long-distance domestic moving services has deteriorated – Continued FDI flow into Asia and increased activit
Slide 12: Plumrose: Unfavourable market and labour conditions
Unfavourable market and labour conditions Productivity and demand fully revitalised ahead of important Christmas season 15 November 2012 12
Slide 13: Market Development and Key Events
MARKET DEVELOPMENT AND KEY EVENTS • Extremely challenging market conditions – Declining purchasing power and flood of government- imported, low-margin products ahead of presidential election • Negotiation of new labour contracts caused very low plant productivity during Q3 – New three-year labour ag
Slide 14: Income Statement
INCOME STATEMENT • Revenue growth driven by price increases • Volumes of own branded products decreased by 4.8 per cent • Increased volumes of fresh meat, co-packing, pigs and feed stuff • EBITDA margin affected by: • Increased cost of feedstuff; corn and soybean • Increase in other raw material pri
Slide 15: Outlook 2012 Revised
OUTLOOK 2012 REVISED (IAS 29) • Demand fully revitalised and productivity restored ahead of important Christmas sales • Revenue at around DKK 5.7bn (around DKK 6.0bn in the previous outlook) • EBITDA margin around 6.0 per cent (around 6.5 per cent in the previous outlook) due to: – Lower sales volum
Slide 16: Q3 Margins Under Pressure, Outlook Revised
Q3 MARGINS UNDER PRESURE OUTLOOK REVISED 15 November 2012 16
Slide 17: Key Factors Impacting Q3 Financial Reporting
KEY FACTORS IMPACTING Q3 FINANCIAL REPORTING • Plumrose reported under hyperinflation (IAS 29) – Translation to DKK at DKK/USD exchange rate 576.60 at end of period (DKK/USD 551.11) • Acquisition of Interdean (1 August 2011) and La Montserratina (16 March 2011) • Favourable exchange rates relative t
Slide 18: Group Income Statement
GROUP INCOME STATEMENT DKK million Historical Reported Reported Q3 YTD 2012 Q3 YTD 2012 Q3 YTD 2011 Revenue 5,386 5,544 4,168 EBITDA 342 231 317 EBITDA margin (%) 6.3 4.2 7.6 Operating profit (EBIT) 242 62 174 Operating margin (%) 4.5 1.1 4.2 Financials, net - -23 -18 Income tax expense 42 76 78 Net
Slide 19: Group Outlook Revised for 2012
GROUP OUTLOOK REVISED FOR 2012 • Consolidated revenue of around DKK 8.2bn (around DKK 8.5bn in the previous outlook) • Consolidated EBITDA margin of around 5.5 per cent (around 6.5 per cent in the previous outlook) • Outlook based on an average exchange rate of 600.00 DKK/USD (in line with the previ
Slide 20: Q&A
Q&A 15 November 2012
Slide 21: Corporate Communications & Investor Relations
CORPORATE COMMUNICATIONS & INVESTOR RELATIONS Niels Henrik Jensen President & CEO Telephone: +45 3525 4300 Mobile: +45 2023 2188 E-mail: nhj@eac.dk Shareholders' Secretariat The East Asiatic Company Ltd. A/S East Asiatic House, 20 Indiakaj Michael Østerlund Madsen DK-2100 Copenhagen Ø Group CFO Denm
The East Asiatic Company — Q3 2012 Earnings Presentation on 6ix