Slide 1: Half-year results 2019
DKSH Holding Ltd. Half-year results 2019
Slide 2: Today's agenda
Today’s agenda Stefan P. Butz Bernhard Schmitt CEO CFO • Highlights H1 2019 • Financial review H1 2019 • Business Units update • Outlook Page 2 © DKSH
Slide 3: Highlights H1 2019 and Business Units update
Highlights H1 2019 and Business Units update Stefan P. Butz CEO Page 3 © DKSH
Slide 4: Setting the pace for DKSH's future
Setting the pace for DKSH’s future Growth strategy: deliver organic growth and supplement with M&A Strategy Business Units Governance xxx • Growth strategy and resilient • Growth in Healthcare, • Renewed Board of Directors business model Performance Materials and • Strengthened Executive • Accelerat
Slide 5: Already four successful acquisitions in 2019
Already four successful acquisitions in 2019 • Consolidated per April 2019 • Active in Malaysia and Singapore 1 • Consumer Goods Auric Pacific • Net sales CHF 185 million • Consolidated per April 2019 Acquisition speed in • Active in Thailand 2 • Technology attractive segments SPC Group • Net sales
Slide 6: Key figures H1 2019
Key figures H1 2019 Net sales1 Adjusted EBIT2 Adjusted profit after tax2 (in CHF million) (in CHF million) (in CHF million) 361.22 +5.8% +1.3% 5,309.9 5,618.6 -8.2% 124.0 122.4 86.4 79.3 H1 2018 H1 2019 H1 2018 H1 2019 H1 2018 H1 2019 ¹ H1 2018: Excluding Healthcare business in China (Net sales: CHF
Slide 7: Business Unit Healthcare
Business Unit Healthcare Underlying Healthcare business continues to grow across Asian markets • Exit Chinese Healthcare market in 2018 Net sales1 in CHF million • Underlying business with good growth 361.21 +7.7% − Medical devices strengthened 2,930.0 2,721.7 − Entered Philippines with own brands −
Slide 8: Business Unit Consumer Goods
Business Unit Consumer Goods Restructuring and acquisitions basis for stronger second half-year • Sales growth in difficult markets and Net sales in CHF million challenging consumer goods industry 1,985.7 1,920.7 3.4% • EBIT impacted by one-time costs • Three main CG initiatives: − Investments H1 20
Slide 9: Consumer Goods restructuring program
Consumer Goods restructuring program Revenue & sales improvement • Client portfolio • Contract optimization • Review Business Lines • SKU management • Business development to drive sales Three main Supply chain Restructuring • Distribution center operations work • Transport management system well-ad
Slide 10: Business Unit Performance Materials
Business Unit Performance Materials Continued strong performance • Positive operating leverage: Net sales in CHF million double-digit EBIT growth 504.2 • Good growth in Asia 475.7 6.0% • Successful expansion of existing relationships coupled with onboarding of H1 2018 H1 2019 new clients • Number of
Slide 11: Business Unit Technology
Business Unit Technology Focus on expanding the business • Higher demand for our services Net sales in CHF million especially in China and Korea 198.7 192.1 3.4% • EBIT below last year – more project business expected to be realized in second half of 2019 H1 2018 H1 2019 • Acquisition of SPC – leade
Slide 12: Financial review and Outlook
Financial review and Outlook Bernhard Schmitt CFO Page 12 © DKSH
Slide 13: Financial results H1 2019
Financial results H1 2019 in CHF million H1 20191 H1 2018 % CHF in % CER2 Net sales 5,618.6 5,671.1 (0.9) (2.1) Adjusted operating profit (EBIT)3 124.0 122.4 1.3 0.4 Operating profit (EBIT) 110.7 139.5 (20.6) (21.4) Adjusted profit after tax3 79.3 86.4 (8.2) (9.3) Profit after tax 68.3 97.5 (29.9) (
Slide 14: Net sales H1 2019
Net sales H1 2019 +3.1% organic growth (in CHF million) 67.9 65.3 175.5 -361.2 5,671.1 5,618.6 -6.4% +3.1% +1.2% +1.2% H1 2018 Healthcare China Organic M&A FX H1 2019 reported reported Organic: Difference 2019 figures to 2018 figures excluding M&A, FX and Healthcare China M&A: Acquisition Auric Paci
Slide 15: EBIT impacted by several effects
EBIT impacted by several effects Adjusted EBIT above prior year (in CHF million) +1.3% 1.6 -17.1 -13.3 139.5 122.4 124.0 110.7 H1 2018 Healthcare China Adjusted Change Adjusted Restructuring H1 2019 H1 20181 H1 2019 2 Consumer Goods ¹ H1 2018: Excluding Healthcare business in China (CHF 17.1 million
Slide 16: Development of adjusted profit after tax
Development of adjusted profit after tax Adjusted profit after tax below last year (in CHF million) -8.2% -11.1 -7.1 • FX effects -11.0 • IFRS 16 97.5 • Higher financial 86.4 expenses from acquisitions 79.3 68.3 H1 2018 Healthcare China Adjusted Change Adjusted Restructuring H1 2019 H1 20181 H1 2019
Slide 17: Impact of IFRS 16
Impact of IFRS 16 Income statement H1 2019 (in CHF million) Rent expense • First year application has slight positive 44.9 impact on EBIT of CHF 2.5 million (Other operating expenses) Healthcare CHF 0.6 million Depreciation & amortization 42.4 Consumer Goods CHF 1.5 million Performance Materials CHF
Slide 18: Balance Sheet
Balance Sheet Continued strong balance sheet in CHF million HY 2019 FY 2018 Cash/Liquid asset 480.1 614.3 • Dividend payment of CHF 120.3 million Trade receivable 2,228.1 2,219.1 • Payments for acquisitions of 175.1 million Inventories 1,296.6 1,177.7 • Impact from IFRS 16 Intangibles 269.0 130.5 Ri
Slide 19: Free Cash Flow and RONOC
Free Cash Flow and RONOC Free Cash Flow RONOC in CHF million H1 2019 H1 2018 in percentage (%) H1 2019 H1 2018 Net cash flows from 101.7 82.9 RONOC reported 16.4% 22.1% operating activities Healthcare China - 3.1% Capital expenditure* (27.0) (13.3) Restructuring 2.0% Repayment of lease liabilities (
Slide 20: Outlook 2019
Outlook 2019 Assuming stable markets, higher 1 operating result expected 2 Tax rate 27-29% 3 CAPEX around CHF 40 million Page 20 © DKSH
Slide 21: Disclaimer
Disclaimer Due care has been used in preparation of this presentation and DKSH makes every effort to provide accurate and up-to-date information. Nevertheless, this presentation may be subject to technical inaccuracies, information that is not up-to-date or typographical errors. DKSH does not assume