Slide 1: Full Year Results 2022
Full Year Results 2022 Media and Investor Conference February 9, 2023 Delivering Growth – in Asia and Beyond. Page 1
Slide 2: Agenda
Agenda 1. Strategy Execution – Highlights 2022 2. Business Units Review 3. Financial Update 4. Outlook Page 2
Slide 3: Strategy Execution – Highlights 2022
1 Strategy Execution – Highlights 2022 Page 4
Slide 4: Continuous Strategic Progress Led to a Strong EBIT Increase Throughout the Pandemic
Continuous Strategic Progress Led to a Strong EBIT Increase Throughout the Pandemic Business Unit High-Performance Digitalization Operational Sustainability Strategies Culture Excellence Continuously implement Keep evolving our culture Accelerate digital solutions, Optimize our operations to strateg
Slide 5: Strategy Execution Delivers Higher Operational Performance Across all Business Units
Strategy Execution Delivers Higher Operational Performance Across all Business Units Our ambition Our ambition Our ambition Our ambition Drive into higher value-added segments Capitalize APAC leadership position Strengthen leading position Build resilience, deliver growth Our achievement Our achieve
Slide 6: We Advance M&A and Drive our Cultural Transformation
We Advance M&A and Drive our Cultural Transformation M&A: >20 Acquisitions Since 2019 We Empower our People Organic growth complemented with Developing our talent, embracing diversity, and value-accretive M&A offering a supportive work environment Page 7
Slide 7: We Drive Digitalization and Strengthen Sustainability
We Drive Digitalization and Strengthen Sustainability Evolution of DKSH’s eCommerce Business Selected Sustainability Rating Scores (in CHF million) (Rating scales standardised to 1 to 100 range) x3 5.0% 4.2% >380 Low risk Low risk Low risk >300 B B 3.0% 67% 57% >200 52% C 1.6% 1.2% 0.7% >125 >90 0.2
Slide 8: Continuation of Progressive Dividend Policy
Continuation of Progressive Dividend Policy Ordinary dividend per share1 (in CHF) 2 2.15 2.05 1.90 1.95 1.85 1.65 1.50 1.30 1.15 0.95 0.80 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 DKSH proposes an increase of the ordinary dividend by 4.9% to CHF 2.15 pe
Slide 9: Business Units Review
2 Business Units Review Page 10
Slide 10: Business Unit Healthcare
Business Unit Healthcare Net sales (in CHF million) EBIT (in CHF million) +3.0%1 +14.9%1,2 5’636.9 5’586.3 146.2 130.2 FY 2021 FY 2022 FY 2021 FY 2022 EBIT margin 2.3% 2.6% • Good results with organic growth and • Acquisitions in key growth areas double-digit EBIT increase − Medical Devices: Acutest
Slide 11: Business Unit Consumer Goods
Business Unit Consumer Goods Net sales (in CHF million) EBIT (in CHF million) -0.6%1 +7.2%1,2 3’808.3 3’708.7 83.3 86.9 FY 2021 FY 2022 FY 2021 FY 2022 EBIT margin 2.2% 2.3% • Successful transformation delivers highest EBIT • Continue strategy of capitalizing on our since 2017 leadership position in
Slide 12: Business Unit Performance Materials
Business Unit Performance Materials Net sales (in CHF million) EBIT (in CHF million)2 +20.2%1 130.1 1’461.4 3.6 7.8 114.7 112.2 6.5 1’281.4 FY 2021 FY 2022 FY 2021 FY 2022 FX M&A cost FX and Underlying Hedging result gains Margin 9.0% 7.7% 8.4% • Double-digit Net Sales growth benefitting from • Glob
Slide 13: Business Unit Technology
Business Unit Technology Net sales (in CHF million) EBIT (in CHF million) +22.6%1 +63.2%1,2 513.2 33.2 430.3 20.9 FY 2021 FY 2022 FY 2021 FY 2022 EBIT 4.9% 6.5% margin • Successful strategy execution with results • DKSH Technology is confident that it will exceeding pre-Covid levels continue to buil
Slide 14: Financial Update
3 Financial Update Page 15
Slide 15: FY 2022 – Overview Key Financials
FY 2022 – Overview Key Financials Net Sales EBIT EBIT Margin Core Profit after tax1 Free Cash Flow 1 (in CHF billion) (in CHF million) (in %) (in CHF million) (in CHF million) Cash Conversion (%) +1.9% +12.2% >25 bps +7.3% 134.8% 100.6% 319.2 11.3 284.6 261.6 11.1 2.8% 209.5 208.3 2.6% 194.1 FY 2021
Slide 16: Solid Net Sales Growth
Solid Net Sales Growth Net Sales (in CHF million) Organic • Organic growth of 3.0% • Portfolio optimization in Business Unit Consumer Goods 1.5% 3.0% 11,320.2 M&A 11,106.3 (2.6)% • Ten acquisitions in 2022 • Sound multiples paid and margins accretive • Additional projects in the pipeline +4.5%¹ FX •
Slide 17: Double Digit EBIT Growth
Double Digit EBIT Growth EBIT (in CHF million) • EBIT of CHF 319.2 million corresponds to a double-digit growth in organic terms 6.1% 319.2 10.5% 284.6 (4.4)% • EBIT growth (in CER)¹ across all Business Units +16.6%¹ 2.6% 2.8% • Margin-accretive M&A FY 2021 Organic M&A FX FY 2022 Profitability incre
Slide 18: Continued Strong Balance Sheet Enables Dividend Distribution and Acquisitions
Continued Strong Balance Sheet Enables Dividend Distribution and Acquisitions in CHF million FY 2021 FY 2022 Liquidity and Working Capital: Cash/Liquid assets 673.7 636.4 • Strong liquidity position maintained Trade receivables 2,049.1 2,030.9 • Continued focus on timely collection and payments: Inv
Slide 19: Additional Financial Indications
Additional Financial Indications FY 2020 FY 2021 FY 2022 FY 2023 Mid-term estimate estimate M&A Further M&A 2.1% 0.8% 1.5% 2.5% to 3.0%1 (net sales contribution) ambitions FX (5.1%) (2.0%) (2.6%) (2.5%)2 n.a. (net sales contribution) Tax rate 26.1% 27.8%3 27.1% 27% to 29% 27% to 29% (% of profit bef
Slide 20: Overview Key Financials 2019 to 2022
Overview Key Financials 2019 to 2022 EBIT and EBIT Margin Free Cash Flow and Cash Conversion¹ CAPEX / Net sales (in CHF million and %) (in CHF million and %) (in %) 319.2 261.6 284.6 0.5% 265.4 257.5 210.2 209.5 0.4% 0.4% 0.4% 156.7 FY 2019 FY 2020 FY 2021 FY 2022 FY 2019 FY 2020 FY 2021 FY 2022 FY
Slide 21: Outlook
4 Outlook Page 22
Slide 22: Outlook
Outlook Current macroeconomic landscape Prospects for 2023 and beyond • Economic recovery in Asia is expected to continue, but at • EBIT Growth in 2023 expected, assuming a lower pace due to weakening global demand − Economic growth in Asia Pacific • The GDP growth forecast for Southeast Asia are hi
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