Slide 1: Full Year 2012 Analyst and Investor Conference
Full Year 2012 Analyst and Investor Conference DKSH Holding Ltd. Zurich, March 12, 2013 © DKSH
Slide 2: Welcome to the DKSH Full Year 2012 Analyst and Investor Conference
Welcome to the DKSH Full Year 2012 Analyst and Investor Conference Page 2 © DKSH
Slide 3: Executive Summary
Executive Summary 2012: Another record year Successful IPO Strong profitability Solid cash generation Contribution from all Business Units Attractive dividends Positive outlook for 2013 Page 3 © DKSH
Slide 4: DKSH's IPO in March 2012
DKSH’s IPO in March 2012 IPO as a milestone in the almost 150-year history of DKSH • Culmination of a transformation process • Re-invention of business model from traditional trading house into the No. 1 in Market Expansion Services Strong brand identity combined with successful track record of prof
Slide 5: DKSH's successful IPO
DKSH’s successful IPO Stock price development since IPO (in CHF) Value created CHF +1.1 billion 67.00 62.00 DKSH share price SPI (Indexed) 57.00 52.00 47.00 Mrz-12 Mar 12 Apr-12 Apr 12 Mai-12 May 12 Jun-12 Jun 12 Jul-12 Jul 12 Aug-12 Aug 12 Sep-12 Sep 12 Okt-12 Oct 12 Nov-12 Nov 12 Dez-12 Dec 12 CHF
Slide 6: Strong performance
Strong performance change In CHF millions 2012 2011 in % Earnings before interest and tax (EBIT) 277.3 237.61) 16.7% Profit after tax 184.72) 152.3 21.3% Net sales 8,834.1 7,340.0 20.4% Thereof growth through acquisitions 1.3% Total dividend CHF 0.953) CHF 0.65 46.2% 3) Ordinary dividend CHF 0.80 CH
Slide 7: Another record year
Another record year 2012: Continued track record of previous years Sustainable profitable growth – double-digit profit increase Sales growth substantially higher than DKSH’s addressable markets’ growth Projected growth of DKSH’s addressable markets: 8.3% (CAGR 2012-2017E)1) Created more than 1,500 n
Slide 8: Clear strategy for sustainable, profitable growth
Clear strategy for sustainable, profitable growth Diligent implementation of strategy for growth • Organic growth • Bolt-on acquisitions ElectCables Clay & Company Staerkle & Nagler • Divestment of non-core businesses OLIC • Strengthen service offering • Increase operational efficiency Indus
Slide 9: Market with high growth potential
Market with high growth potential • Still considerable growth potential in DKSH’s addressable market: 8.3% p.a. until 20171) • Growth drivers: Rise of the middle class in emerging markets Strong inner-Asian trade Trend towards outsourcing MES2) growth premium is driven by an increase in the ou
Slide 10: Rapidly growing middle class in Asia
Rapidly growing middle class in Asia Growing middle class in Asia Pacific1) • Growing middle class driving demand for local and international products APAC middle class • By 2030 middle class is expected in % of the global to grow by six times middle class 54% 66% 28% • DKSH is very well positioned
Slide 11: Strong inner-Asian trade
Strong inner-Asian trade Origin of DKSH’s key clients • Asia Pacific is today already the second largest trading area after Europe, having overtaken 1) Asia North America 25% • Inner-Asian trade is expected to rapidly grow as trade barriers between Asian nations decline (e.g. in ASEAN) and fast deve
Slide 12: Trend towards outsourcing
Trend towards outsourcing • Asia as a target region for companies seeking to grow their business • Strong focus on core competencies – research and development, global production and marketing – leads to increasing demand for outsourcing services related to market entry and expansion • DKSH is a rel
Slide 13: Strong performance
Strong performance 2012: Another record year Strong profitability High organic growth Excellent free cash flow Contribution from all Business Units Page 13 © DKSH
Slide 14: Substantially higher profitability
Substantially higher profitability Financials Comments (in CHF millions) 2012 2011 Change % • EBIT growth of 16.7% EBIT 277.3 237.6 16.7 • Profit after tax (adjusted) increased by 21.3% Profit before tax 288.4 229.2 25.8 • Lower tax rate due to Thai tax reduction and tax-free extraordinary items Tax
Slide 15: Strong organic growth
Strong organic growth (CHF m) Net sales by region Comments • Strong sales growth of 20.4%, mainly driven by Thailand 36.4% organic growth Increased volumes with existing clients Rest of World Rolling out success stories from country to 3.1% country Rest of Asia Pacific 103.1 Successful busines
Slide 16: Excellent free cash flow
Excellent free cash flow Free cash flow Comments (EBITDA - Capex - SWC)1) 300 • Positive free cash flow despite strong sales growth 250 • Strong free cash flow increase 2012 supported by 200 (in CHF imillions) Late collection in early 2012 after 2011 150 floodings in Thailand 250 December 2011
Slide 17: Business Unit Consumer Goods
Business Unit Consumer Goods Financials Comments (in CHF millions) 2012 2011 % • EBIT growth of 0.9% Net sales 3,949.7 3,326.9 18.7 • Strong net sales growth across all markets • Smooth integration of acquired companies: EBIT 161.0 159.5 0.9 Brandlines/FNZ in New Zealand margin (%) 4.1 4.8 (Septem
Slide 18: Business Unit Healthcare
Business Unit Healthcare Financials Comments (in CHF millions) 2012 2011 % • Strong EBIT growth of 31.9% Net sales 3,698.8 2,906.9 27.2 • Solid net sales growth across all markets Organic growth EBIT 81.9 62.1 31.9 Expansion of partnerships margin (%) 2.2 2.1 Focus on full service solutions •
Slide 19: Business Unit Performance Materials
Business Unit Performance Materials Financials Comments (in CHF millions) 2012 2011 % • EBIT growth of 6.8% on top of a very high base in 2011 Net sales 751.0 696.9 7.8 • Strong organic growth and business EBIT 58.0 54.3 6.8 development in Asia more than compensate for slow growth in Europe as well
Slide 20: Business Unit Technology
Business Unit Technology Financials Comments (in CHF millions) 2012 2011 % • EBIT growth of 4.1% at an attractive margin Net sales 441.3 412.6 7.0 • Growth with existing suppliers and new business development EBIT 22.6 21.7 4.1 • Two bolt-on acquisitions: margin (%) 5.1 5.3 ElectCables in Australi
Slide 21: Good start to 2013
Good start to 2013 Capitalizing on the tailwind of the IPO • Raised awareness of DKSH’s brand and business model • Enhanced position in talent market • Strong organic growth • Successful business development • Industry consolidation: Bolt-on acquisition of medical device distributor Miraecare in Kor
Slide 22: 2013: Another record year ahead
2013: Another record year ahead 1 Growing middle classes in Asia Outlook for full-year 2013: Sales growth at least in line with 2 Increasing inner-Asian trade projected market growth of 8.3%1) Double-digit EBIT growth 3 Trend towards outsourcing Double-digit EBIT growth expected 1) Roland Berger Str
Slide 23: Thank you for your attention.
Thank you for your attention. DKSH Holding Ltd. Wiesenstrasse 8, Postfach 888, 8034 Zürich, Schweiz Telefon +41 44 386 7272, Fax +41 44 386 7282 www.dksh.com © DKSH
Slide 24: Disclaimer
Disclaimer This presentation has been prepared by DKSH Holding Ltd. (the “Company”) and is provided as a convenience to investors. It offers a brief overview of certain aspects of the Company's business and is not to be construed as a solicitation of an offer to buy or sell any securities or other f
Slide 25: Think Asia. Think DKSH.
&@ pksH Think Asia. Think DKSH. Think Asia. Think DKSH.