Slide 1: Half Year Results 2020
DKSH Holding Ltd. Half Year Results 2020 July 15, 2020 Page 1 © DKSH
Slide 2: An unprecedented first half year 2020
An unprecedented first half year 2020 Sudden decline of economic outlook… … due to lockdowns across markets Jan Feb Mar Apr May June Negative GDP China China - 4.0% Malaysia Hong Kong1 - 6.0% Singapore - 6.5% Thailand Japan1 - 6.5% Hong Kong Philippines Malaysia Thailand 21-year low Vietnam Consumer
Slide 3: Navigating through market uncertainties
Navigating through market uncertainties… … while remaining fully operational COVID-19 action plan Highest priority on health and safety as well as ensuring business continuity Reliable delivery of essential items Ethanol donation in Thailand Safeguarding assets, strong balance sheet Generating healt
Slide 4: Initial business impact from COVID-19
Initial business impact from COVID-19 % of EBIT Insights (in 2019) Medium Technology • Affected as customers had to shut down production Consumer • Despite tough markets, Fast Moving Consumer Goods in demand Goods • Heavy declines across Luxury and Lifestyle categories Size of impact Performance • L
Slide 5: Pushing ahead with our strategic plan
Pushing ahead with our strategic plan More Business New DKSH Identity Maintained service level; Development drive efficiency projects Drive Business Units strategies Drive high-performance culture Strengthen and update Supply Chain Stronger eCommerce Closed two acquisitions Good progress in FMCG Cha
Slide 6: Business Unit Healthcare
Business Unit Healthcare Net sales Softer market trends in CHF million -4.0%³ Patient traffic 75% versus Q4 20191 Patient flow 72% end-May and 90% end-June, trend improving2 2’930.0 2’723.0 DKSH with resilient results H1 2019 H1 2020 Net sales and EBIT around last year’s level3 EBIT in CHF million •
Slide 7: Business Unit Consumer Goods
Business Unit Consumer Goods Fast-moving Consumer Luxury and Lifestyle Goods (FMCG) • Nutritional • Accessories • Personal Care • Apparel • Snacks & Confectionary • Household luxury products • Beverages • Watches • Home Care • Writing instruments • …. • … Turnaround progressing well Business impacte
Slide 8: Business Unit Consumer Goods
Business Unit Consumer Goods Net sales Unprecedented market trends in CHF million +0.8%³ Tourism -60% in Thailand1 Watch exports -36%2 1’985.7 1’912.2 21-year low Thai consumer confidence DKSH results H1 2019 H1 2020 Adjusted EBIT • FMCG with good sales and higher EBIT in CHF million -12.4%³ − Stron
Slide 9: Business Unit Performance Materials
Business Unit Performance Materials Net sales Strengthening position as leading specialty in CHF million chemicals and ingredients distributor +11.7%¹ • Continued net sales growth − Onboarding of new clients 504.2 535.7 − Expansion with existing suppliers • Further expansion of market coverage H1 20
Slide 10: Business Unit Technology
Business Unit Technology Net sales Exceptionally challenging first half 2020 in CHF million -12.4%¹ • Customers had to shut down production temporarily and put investments on hold • Impact on both project and service business 198.7 167.0 Clear action plan initiated H1 2019 H1 2020 • Cost savings: mi
Slide 11: Financial results H1 2020
Financial results H1 2020 Net sales EBIT Profit after tax Free Cashflow RONOC CHF 5.3 bn CHF 111.3 m CHF 60.2 m CHF 51.1 m 15.2% -1.2%1 +4.7%1 -9.1%1 +59.2% -1.2%ppt Net sales by region Net sales by region DKSH more diversified HY 2019 HY 2020² across markets Thailand • Indochina, Indonesia and ANZ
Slide 12: Net sales development
Net sales development Resilient in unprecedented times (in CHF million) 5’618.6 5’337.9 -4.0% +2.8% -3.8% H1 2019 Organic M&A FX H1 2020 Organic: Difference 2020 figures to 2019 figures excluding M&A and FX M&A: Acquisition Auric Pacific, CTD and Crossmark (Consumer Goods), Dols and Axieo (Performan
Slide 13: EBIT development
EBIT development EBIT only 6.5% below last year¹ (in CHF million) -4.0 -10.4% +3.9% -3.7% +6.0 -4.0 124.0 -6.5% at CER¹ 110.7 110.7 111.1 111.1 111.3 111.3 H1 2019 Restructuring Adjusted Organic M&A FX H1 2020 Consumer Goods H1 2019 ¹ Constant exchange rates Page 13 © DKSH
Slide 14: COVID-19 cost and cash flow measures
COVID-19 cost and cash flow measures • Priority on health and well-being Protect profitability • Hiring freeze, except for critical positions and new business • Reduction in travel and other discretionary spending • Diligent FX management (hedging) Safeguard assets • Increased focus on working capit
Slide 15: Sound financials to mitigate market volatilities
Sound financials to mitigate market volatilities Asset-light business model Continued good cash generation Capex / net sales (in %) 1 Free Cashflow (in CHF million) 0.6% 160 Average 0.4% 140 0.4% 120 100 80 59.2% 0.2% 60 40 20 0.0% 0 2015 2016 2017 2018 2019 H1 2019 H1 2020 2017 2018 2019 H1 2019 H1
Slide 16: Balance Sheet
Balance Sheet in CHF million H1 2020 FY 2019 Cash/Liquid assets 506.6 592.6 • Dividend distribution of CHF 123.6 million Trade receivables 1,982.5 2,241.2 • Payments of CHF 53.0 million for Inventories 1,295.2 1,236.9 acquisitions of Crossmark and Axieo Intangibles 301.5 298.5 • Improved net working
Slide 17: Accelerated M&A strategy
Accelerated M&A strategy ... … completed at attractive multiples Target Business Unit Consolidated Net sales months in CHF million 1 Ideal M&A criteria: Consumer Goods April 2019 185 Earnings and margin accretive Consumer Goods July 2019 45 >15% RONOC Consumer Goods March 2020 50 Performance Materia
Slide 18: Outlook
Outlook Robust and asset-light business model Good share of daily consumption items Distribution as the key growth driver Strategic initiatives and short-term prudent spending Intact long-term growth drivers Page 18 © DKSH
Slide 19: Capital Market Day 2020 Save the Date
Capital Market Day 2020 Save the Date September 21, 2020 Page 19 © DKSH
Slide 20: Q&A session
Q&A session Page 20 © DKSH