Slide 1: Full Year 2013 Analyst and Investor Conference
Full Year 2013 Analyst and Investor Conference DKSH Holding Ltd. March 11, 2014 © DKSH
Slide 2: Welcome to the DKSH Full Year 2013 Analyst and Investor Conference
Welcome to the DKSH Full Year 2013 Analyst and Investor Conference Page 2 © DKSH
Slide 3: 2013: another record year in a challenging environment
2013: another record year in a challenging environment Change Change in % In CHF millions 2013 20121 in % at CER2 Net sales 9,559.0 8,808.8 8.5% 10.4% Operating profit (EBIT) 282.2 275.3 2.5% 5.9% EBIT incl. gain on sale of property3 309.8 275.3 12.5% 16.7% Profit after tax 214.1 183.6 16.6% 20.0% P
Slide 4: Continuation of our track record
Continuation of our track record Highlights 2013 Sustainable, profitable growth – strong double-digit profit growth Net sales growth exceeds projected 7.8%1 growth rate in DKSH’s addressable markets Further market share gains Proof for resilience of our business model Excellent free cash flow (CHF 4
Slide 5: Clear strategy for sustainable, profitable growth
Clear strategy for sustainable, profitable growth Diligent implementation of our strategy for growth • Organic growth − Expanding business with existing clients and customers − Multiplying success stories from country to country − New business development • Bolt-on acquisitions − Miraecare, South Ko
Slide 6: Industry with promising growth potential
Industry with promising growth potential Market Expansion Services (MES) • Still considerable growth potential in DKSH’s addressable markets: 7.8% p.a. until 20181 • Growth drivers: − Rise of the middle class in emerging markets − Stronger inner-Asian trade − Trend towards outsourcing MES growth pre
Slide 7: Rapidly growing middle class in Asia
Rapidly growing middle class in Asia Growing middle class in Asia Pacific1 • By 2030 middle class is expected to grow sixfold1 APAC middle class • Growing middle class driving demand for in % of the global local and international products middle class 54% 66% 28% • DKSH is well positioned to benefit
Slide 8: 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 1 overtaken North America Asia 25% • Inner-Asian trade is expected to rapidly grow as trade barriers between Asian nations decline (e.g. in ASEAN) and local cons
Slide 9: Trend towards outsourcing
Trend towards outsourcing • Asia as a target region for companies seeking to grow their business • Strong focus on core competencies – R&D, manufacturing, marketing – leads to increasing demand for outsourcing services related to market entry and expansion • DKSH is a reliable partner for the succes
Slide 10: Excellent result in 2013
Excellent result in 2013 Financials Comments Change Change % • Net sales growth of 10.4% at CER (in CHF million) 2013 20121 % at CER2 • Profit after tax growth of 20.0% (at CER) Net sales 9,559.0 8,808.8 8.5% 10.4% − Operational efficiency and EBIT 282.2 275.3 2.5% 5.9% economies of scale EBIT incl.
Slide 11: Strong organic growth
Strong organic growth Net sales by region and breakdown Comments Thailand 36.5% • Deeply rooted in one of the world's fastest Rest of World growing markets: 96% of net sales generated in 3.8% Asia Pacific Rest of Asia Pacific Greater China • Net sales growth of 8.5% (10.4% at CER1), 11.6% 27.4% main
Slide 12: Excellent free cash flow
Excellent free cash flow Free cash flow Comments (EBITDA - Capex - SWC1) • Record free cash flow despite strong sales 450 growth • Strong free cash flow increase in 2013 400 supported by 350 − High EBITDA (in CHF millions) − Decrease in working capital 300 409 − Positive FX developments 250 • Resul
Slide 13: Business Unit Consumer Goods
Business Unit Consumer Goods Financials Comments Change Change % • Strong net sales growth in a challenging (in CHF million) 2013 20121 % at CER2 market environment with a variety of Net sales 4,171.2 3,947.4 5.7% 7.1% markets and clients EBIT 158.1 161.0 -1.8% -0.6% • Solid organic growth EBIT marg
Slide 14: Business Unit Healthcare
Business Unit Healthcare Financials Comments Change Change % • Excellent net sales growth of 15.8% and (in CHF million) 2013 20121 % at CER2 outstanding EBIT growth of 30.6% (both Net sales 4,254.7 3,698.8 15.0% 15.8% at CER) EBIT 106.7 81.9 30.3% 30.6% • Solid organic growth in all markets EBIT mar
Slide 15: Business Unit Performance Materials
Business Unit Performance Materials Financials Comments Change Change % • Net sales growth of 11.1% (at CER) (in CHF million) 2013 20121 % at CER2 • Negative FX impact caused by strong Net sales 770.1 751.0 2.5% 11.1% depreciation of yen including associated EBIT 54.4 58.0 -6.2% 5.2% booking of hedg
Slide 16: Business Unit Technology
Business Unit Technology Financials Comments Change Change % • Strong negative impact from FX (in CHF million) 2013 20121 % at CER2 fluctuations and associated booking of Net sales 363.9 416.0 -12.5% -7.9% hedging gains EBIT 16.2 21.9 -26.0% -23.7% • Certain operational problems have EBIT margin 4.5
Slide 17: Good start into 2014
Good start into 2014 • Uncertain political situation in Thailand – additional opportunities for DKSH in the long-term • Targeted support enhanced for Japanese companies entering South East Asia • Cooperation with various clients extended • Acquisition of healthcare distributor Glory in Macao allowin
Slide 18: Attractive business model with three major growth drivers
Attractive business model with three major growth drivers 1 Growing middle class in Asia Long-term trends support our business model 2 Increasing inner-Asian trade Organic growth coupled with selected bolt-on acquisitions 3 Trend towards outsourcing 2014 is expected to be another record year Page 18
Slide 19: Three-year targets up to 2016
Three-year targets up to 2016 Double-digit profitable growth until 2016 Net sales EBIT Profit after tax 400 300 14'000 350 12'000 380 250 270 (CHF million) (CHF million) (CHF million) 12,000 300 10'000 200 250 282 214 8'000 9,559 200 150 6'000 150 100 4'000 100 50 2'000 50 0 0 0 2013 2016 2013 2016
Slide 20: Thank you for your attention.
Thank you for your attention. © 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 ass