Dksh Holdings (malaysia) Bhd. · MYX:DKSH
Dksh Holdings (malaysia) Bhd — FY2022 Earnings Presentation
30 slides from Dksh Holdings (malaysia) Bhd's earnings presentation, Feb 22, 2023
Slide 1: DKSH FY2022 Analyst and Investor Presentation
DKSH FY2022 Analyst and Investor Presentation Stephen Ferraby, Head Corporate Affairs & Strategic Investments and Non-Independent Non-Executive Chairman, DKSH Malaysia February 22, 2023 Delivering Growth – in Asia and Beyond. Page 1
Slide 2: Agenda
Agenda 1. About DKSH Group 2. DKSH Malaysia at a glance 3. FY2022 results 4. Outlook Page 2
Slide 3: About DKSH Group
1 About DKSH Group Page 3
Slide 4: Who We Are
Who We Are Your Trusted Partner We enrich people’s lives by providing access to goods, services, and insights. United by our vision to be the trusted partner, we help companies grow. Page 4
Slide 5: DKSH Is a Successful Market Leader
DKSH Is a Successful Market Leader Nearly 2,200 clients 32,600 160 years’ experience 2,100 suppliers specialists 11.3 billion >10 years 21.8 Net sales (2022) 4 markets million average client relationship1 transactions per year 1 Top 200 clients by net sales Page 5
Slide 6: We Support Companies to Grow Their Business…
We Support Companies to Grow Their Business… • Helping companies to grow their business in new and existing markets • Providing business partners with the knowledge, advice, relationships, and on-the-ground logistics to reach their individual growth goals • Expanding their access to knowledge, their
Slide 7: …With a Comprehensive, Tailor-Made Portfolio of Services
…With a Comprehensive, Tailor-Made Portfolio of Services Market Expansion Services goes beyond offering individual services – it is about the integration of many different services to meet the needs of business partners Distribution Market Marketing After-Sales Sourcing and Insights and Sales Servic
Slide 8: DKSH Malaysia at a Glance
2 DKSH Malaysia at a Glance Page 8
Slide 9: DKSH Malaysia at a Glance
DKSH Malaysia at a Glance Celebrating 100 Years in Malaysia Page 9
Slide 10: Three Specialized Business Segments
Three Specialized Business Segments Marketing & Distribution Services Logistics Services Others • Fast Moving Consumer Goods • Healthcare • Famous Amos • Food Services • Others – overheads …leading the Market Expansion Services industry with tailored solutions across the value chain Page 10
Slide 11: Marketing & Distribution Segment
Marketing & Distribution Segment Fast Moving Consumer Goods (FMCG) • Food (Nutritional products, snacks, beverages, dairy etc) • Non-food (Personal care, home care, baby and child care, consumer health etc) • Pet care Food Services • Provide customers high quality ingredients and the latest industry
Slide 12: DKSH Expands Partnership With Disposable Soft Goods
DKSH Expands Partnership With Disposable Soft Goods DKSH has expanded its distribution agreement with Disposable Soft Goods (DSG), one of the largest providers of disposable diapers for babies and adult incontinence in Southeast Asia, to distribute its products in West Malaysia. Page 12
Slide 13: Logistics Segment
Logistics Segment Healthcare • Pharmaceuticals • OTC & Consumer Health • Medical Devices Page 13
Slide 14: Partnership with SPLAT® to Offer Natural Oral Care Solutions in Malaysia
Partnership with SPLAT® to Offer Natural Oral Care Solutions in Malaysia DKSH has been appointed by SPLAT Asia Limited, a family-run company and a part of SPLAT Group, to drive growth for its high- quality and natural SPLAT® oral care products in Malaysia. ¹ Transaction signed, not yet closed Page 1
Slide 15: Partnership with Nexus Pharma
Partnership with Nexus Pharma DKSH has been appointed by Nexus Pharma, the globally recognized company specializing in the production and export of pharmaceuticals and cosmeceutical products from South Korea, to market and distribute its skincare brand, Glutanex, in Malaysia. Page 15
Slide 16: Others Segment
Others Segment At the end of FY2022, there were a total of 89 outlets located in West and East Malaysia as well as two outlets in Brunei Page 16
Slide 17: Serving International Clients…
Serving International Clients… Trusted Partner for Well-Known International Brands Consumer Goods: Healthcare: Page 17
Slide 18: …and Local Brands
…and Local Brands Reliable Partner for Asian Brands In Malaysia for Malaysia Page 18
Slide 19: Agency of the Year for Second Consecutive Year at Asia eCommerce Awards 2022
Agency of the Year for Second Consecutive Year at Asia eCommerce Awards 2022 DKSH’s acclaimed clients and customers, such as 7-Eleven, Roche, and Omron, have gained a total of 12 prestigious industry accolades, including four Gold, three Silver, and five Bronze at the Asia eCommerce Awards 2022. Add
Slide 20: FY2022 Results
3 FY2022 Results Page 20
Slide 21: FY2022 Results
FY2022 Results Financials Comments (in RM millions) FY2022 FY2021 Change % • Revenue improved by 6.3% mainly due to the ongoing growth of existing clients and new clients secured as well as recovery from Revenue 7,162.7 6,738.4 6.3% the effects of COVID-19 pandemic in all segments • Operating costs
Slide 22: Marketing and Distribution Services
Marketing and Distribution Services Financials Comments (in RM millions) FY2022 FY2021 Change % • Revenue grew by 5.7% as a result of ongoing growth of existing clients and effective cost management Revenue 4,016.6 3,800.0 5.7% • This is despite short-term pressure on own brands margins from rising
Slide 23: Logistics Services
Logistics Services Financials Comments (in RM millions) FY2022 FY2021 Change % • Revenue improved by 6.7% mainly due to the growth in existing clients and new clients secured in the fourth quarter of 2021 Revenue 3,083.3 2,891.0 6.7% • Segment profit improved 17.5% due to sales growth and improved m
Slide 24: Segment – Others
Segment – Others Financials Comments (in RM millions) FY2022 FY2021 Change % • Revenue grew by 32.3% mainly due to the recovery from the effects of COVID-19 pandemic Revenue 62.8 47.5 32.3% • Prior year segment result includes a one-off gain recognized on internal reorganization of the Performance M
Slide 25: Cash Flows
Cash Flows Financials Comments (in RM millions) FY2022 FY2021 • Lower cash flows generated from operating activities due to higher receivables from increased sales and increased stock holding in Net cash flows generated from anticipation of early Lunar New Year celebration in 2023 109.9 189.0 • High
Slide 26: Outlook
4 Outlook Page 26
Slide 27: Outlook
Outlook • This year, DKSH celebrates 100 years of presence in Malaysia. • Overall, consumer demand remains stable despite inflationary pressure with some fluctuations in relation to the current phase of recovery • Continue to focus on winning new businesses, cost efficiency improvements, working cap
Slide 28: Two market trends…
Two market trends… 1 Growing middle class in Malaysia 2 Trend towards outsourcing Increased spending on value-for-money consumer goods and healthcare products Investments in local infrastructure and industries …boost expansion, consumer/industrial spending as well as MES industry Page 28
Slide 29: We welcome your questions
We welcome your questions Page 29
Slide 30: Thank you for your attention
Thank you for your attention Delivering Growth – in Asia and Beyond. Page 30
DKSH Holdings (Malaysia) — FY2022 Earnings Presentation on 6ix