Slide 1: Full-Year Results 2024
Full-Year Results 2024 Media and Investor Conference February 12, 2025 Delivering Growth – in Asia and Beyond. Page 1
Slide 2: Agenda
Agenda 1. Highlights FY 2024 2. Business Units Review 3. Financial Update 4. Outlook Page 2
Slide 3: Highlights FY 2024
1 Highlights FY 2024 Page 3
Slide 4: DKSH Mid-Term Roadmap: Our Strategic Priorities Is Expected to Deliver Higher Core EBIT Levels
DKSH Mid-Term Roadmap: Our Strategic Priorities Is Expected to Deliver Higher Core EBIT Levels¹ Higher Core EBIT¹ M&A Expand offering Margin Expansion Enlarge geographic + Portfolio mix + footprint Growth Operational + Organic + excellence execution Structural + 329.9 tailwinds 2023 Enabling factors
Slide 5: We Have Delivered on All Our Mid-Term Roadmap KPIs
We Have Delivered on All Our Mid-Term Roadmap KPIs DKSH Mid-Term Roadmap KPIs FY 2024 Realization Deliver accelerated net sales growth Growth Net Sales: +4.0% at CER3 above GDP1,2 Margin Expand margin on average by at least Core EBIT: 8.4% at CER3 Expansion 10 basis points annually2 Margin 3.1% (>10
Slide 6: DKSH Creates Value Through Diligent Strategy Execution
DKSH Creates Value Through Diligent Strategy Execution New and Expansion of Existing Business* • Great Place to Work® Certification in eleven markets • Improved employee engagement survey result: 78 (from 77) • 36% of women in senior leadership • Strengthened leadership with new Head M&A and General
Slide 7: Business Units Review
2 Business Units Review Page 7
Slide 8: Business Unit Healthcare
Business Unit Healthcare Net Sales (in CHF million) • Continued high net sales growth +6.0%¹ • Strong business development with 5’578.2 5’697.2 existing and new clients in key markets • Focus on higher value-added segments and services FY 2023 FY 2024 • Full Agency services, for the first time, >50%
Slide 9: Business Unit Consumer Goods
Business Unit Consumer Goods Net Sales (in CHF million) • Net sales growth of 1.6% at CER in a challenging market environment +1.6%¹ 3’515.5 3’443.2 • Solid market share gains in Vietnam, Australia, and New Zealand • Beauty Care acquisition (CS&Co.) with positive contribution FY 2023 FY 2024 • Furth
Slide 10: Business Unit Performance Materials
Business Unit Performance Materials Net Sales (in CHF million) • Performance Materials with a +1.2%¹ positive organic net sales growth 1’439.7 1’404.8 • Both Life Sciences and Industrials slightly positive • H2 2024 sequentially stronger FY 2023 FY 2024 than H1 2024; quarter by quarter improvement C
Slide 11: Business Unit Technology
Business Unit Technology Net Sales (in CHF million) • Net sales growth of 6.9% (CER) +6.9%¹ attributable to acceleration in H2 532.6 549.3 • Continued investments in scientific solutions and hi-Tech segments2 • Bio-Strategy acquisition progressing well, CLMO acquisition closed in Q4 2024 FY 2023 FY
Slide 12: Financial Update
3 Financial Update Page 12
Slide 13: FY 2024 – Continued Good Financial Performance
FY 2024 – 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 (%) +4.0%1 +8.4%1 >10 bps +13.9%1 137.7% 113.6% 343.1 282.3 329.9 225.7 256.5 11.1 11.1
Slide 14: Above-GDP Net Sales Increase and Continued Strong Core EBIT Growth
Above-GDP Net Sales Increase and Continued Strong Core EBIT Growth Net Sales (in CHF million) Core EBIT (in CHF million) 2.5% 343.1 (2.7)% 3.1% 0.9% 5.9% 333.9 11’066.0 11’093.6 329.9 (4.4)% (3.8)% +4.0%1 +8.4%¹ 2 2023 Organic M&A FX 2024 2023 Core Organic M&A FX 2024 Core Non-core 2024 EBIT EBIT EB
Slide 15: Sustainable Net Sales And Core EBIT Increase Since 2020
Sustainable Net Sales And Core EBIT Increase Since 2020… Net Sales Core EBIT (in CHF billion) (in CHF million) CAGR +4.9%1 CAGR +13.0%1 12.4 13.0 11.4 11.9 419.4 384.0 340.0 290.0 319.2 329.9 343.1 11.1 11.3 11.1 11.1 257.5 283.4 10.7 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Net Sales FX im
Slide 16: Combined With a Legacy of Strong Cash Generation
…Combined With a Legacy of Strong Cash Generation Working Capital1 Free Cash Flow (in % of annualized Net Sales) (in CHF million) Ø Cash Conversion: 124.4% 282.3 9.6% 9.6% 261.6 256.5 9.0% 210.2 209.5 8.8% 8.6% 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Capex2 / Net Sales (%) Cash Conversion
Slide 17: Continued Strong Balance Sheet With Significant Leverage Potential
Continued Strong Balance Sheet With Significant Leverage Potential in CHF million 2023 2024 Strong return metrics Cash/liquid assets 687.2 609.1 • Higher Core RONOC of 19.7% Trade receivables 1,840.7 1,964.6 • Improved Core ROE of 12.1% Inventories 1,138.0 1,334.6 Intangibles 785.6 819.6 Improved ba
Slide 18: Additional Financial Indications
Additional Financial Indications FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Mid-Term Estimate1 Estimate M&A Increased M&A 0.8% 1.5% 2.1% 0.9% ~0.3%2 (net sales contribution) ambitions FX Slightly (2.0%) (2.6%) (7.5%) (3.8%) n.a. (net sales contribution) positive3 Tax rate 27.8%4 27.1% 28.1% 29.5% 27% t
Slide 19: Outlook
4 Outlook Page 19
Slide 20: M&A: Accretive Acquisitions Supplementing Organic Growth
M&A: Accretive Acquisitions Supplementing Organic Growth Business Unit / 2024 margin2 M&A spend3 since 2020 (in %) M&A priorities Line • Focus on higher-margin business based on Healthcare ~10% attractive pipeline > 20% Own Brands1 • Continue bolt-on strategy to fill white spots Performance ~60% 8.1
Slide 21: Strong Cash Generation Enables M&A Acceleration and a Progressive Dividend Policy
Strong Cash Generation Enables M&A Acceleration and a Progressive Dividend Policy M&A Activity & Balance Sheet Ordinary Dividend per Share (in CHF) CAGR Dec. 31, 2024 Leverage headroom +9.4% Net cash / (Debt) CHF 48.1 Up to ~2x Net 2.35 2 2.05 2.15 2.25 million Debt / EBITDA 1.85 1.90 1.95 1.65 1.50
Slide 22: Outlook
Outlook Current Macroeconomic Landscape Prospects for 2025 and Beyond • Growth ahead of average world GDP • DKSH is committed to its mid-term expected, driven by: roadmap, highlighting that its outlook for • Robust domestic demand 2025 aligns with these goals. • Export dynamics • The company expects
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