Dksh Holding Ltd · SIX:DKSH
Dksh — H1 2023 Earnings Presentation
23 slides from Dksh's earnings presentation, Jul 18, 2023
Slide 1: Half-Year Results 2023
Half-Year Results 2023 Media and Investor Conference July 18, 2023 TBU Delivering Growth – in Asia and Beyond. Page 1
Slide 2: Agenda
Agenda 1. Highlights HY 2023 2. Business Units Review 3. Financial Update 4. Outlook Page 2
Slide 3: Highlights HY 2023
1 Highlights HY 2023 Page 3
Slide 4: DKSH Has a Growth Strategy…
DKSH Has a Growth Strategy… Business Unit High-Performance Digitalization Operational Sustainability Strategies Culture Excellence Accelerate digital solutions, Continuously implement our Keep evolving our culture of drive our eCommerce business, Optimize our operations to growth strategies, strengt
Slide 5: …and is Moving Forward in All Relevant Areas
…and is Moving Forward in All Relevant Areas 1 2 3 4 5 High- Business Unit Operational Performance Digitalization Sustainability Strategies Excellence Culture Client Strengthen SAP S/4Hana New distribution Sustainability partnerships leadership team integration centers linked loan • New Head Busines
Slide 6: H1 2023 Results Confirm DKSH’s Value Creation
H1 2023 Results Confirm DKSH’s Value Creation DKSH Value Creation H1 2023 Realization Achieve above GDP Net Sales: CHF 5.6 billion Growth net sales growth (+7.2% at CER1) Core EBIT: CHF 162.6 million (+15.5% at CER2) Profitability Expand margin Margin 2.9% (+15 bps) Free Cash Flow: CHF 179.0 million
Slide 7: Capital Allocation Focused on Higher Profitability Business
Capital Allocation Focused on Higher Profitability Business Business Unit / Line H1 2023 Margin2 M&A spend3 since 2019 (in %) >20 acquisitions since 2019 Healthcare Own Brands1 >10% 10% Performance Materials 8.1% 65% Technology 4.7% 15% Healthcare 2.8% 5% Consumer Goods 2.2% 5% Focus on high-margin
Slide 8: Business Units Review
2 Business Units Review Page 8
Slide 9: Business Unit Healthcare
Business Unit Healthcare Net Sales (in CHF million) • Accelerated net sales growth +6.7%¹ o Expansion with existing and new 2’803.4 2’809.8 clients in Thailand, Malaysia, and Vietnam o Successful market entry in the Philippines H1 2022 H1 2023 • Focus on growing higher added-value Core EBIT (in CHF
Slide 10: Business Unit Consumer Goods
Business Unit Consumer Goods Net Sales (in CHF million) • Early shift into growth acceleration +2.0%¹ o Client wins and expansion 1’867.1 1’788.0 o Portfolio optimization in closing H1 2022 H1 2023 Core EBIT (in CHF million) • Core EBIT margin further increased from 2.1% to 2.2% +5.5%1 • Insourcing
Slide 11: Business Unit Performance Materials
Business Unit Performance Materials Net Sales (in CHF million) • M&A driven sales growth of 14.6% (CER) +14.6%¹ 719.4 767.0 • Slightly lower organic sales to be viewed against challenging macroeconomic environment and strong H1 2022 results H1 2022 H1 2023 • Core EBIT includes amortizations of CHF 4
Slide 12: Business Unit Technology
Business Unit Technology Net Sales (in CHF million) • Double-digit net sales growth +34.4%¹ • Increased investments in scientific 259.0 206.3 instrumentation, precision machinery, and semiconductor industries in Asia • M&A performing ahead of expectations H1 2022 H1 2023 • Core EBIT margin expands t
Slide 13: Financial Update
3 Financial Update Page 13
Slide 14: HY 2023 – Continued Good Financial Performance
HY 2023 – 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 (%) +7.2%1 +15.5%1 >15 bps +9.3%1 68.5% 168.2% 5.6 5.6 179.0 162.6 106.4 153.3 2.9% 105.
Slide 15: Solid Net Sales Growth
Solid Net Sales Growth Net sales (in CHF million) Organic • Organic growth of +4.3% - above weighted GDP 2.9% • Portfolio optimization in Business Unit Consumer Goods 4.3% 5’623.8 M&A 5’596.2 • Strong impact from value-accretive M&A (6.7)% (translational effect from transactions in 2022) +7.2%¹ • He
Slide 16: Double-Digit Core EBIT Growth
Double-Digit Core EBIT Growth Core EBIT (in CHF million) Organic • Core EBIT of CHF 162.6 million corresponds to single-digit growth in organic terms 10.2% 5.3% 162.6 162.6 (2.7)% 158.5 153.3 (9.4)% M&A +15.5%¹ • Strong impact from margin-accretive M&A 2.7% 2.9% 2.… 2.8% FX • Core EBIT growth (in CE
Slide 17: Continued Strong Cash Generation
Continued Strong Cash Generation Capex / net sales (%) Free Cash Flow (in CHF million) and Cash Conversion (%) 0.5% 0.5% 0.5% 261.6 0.4% 0.4% 0.4% 0.4% 210.2 209.5 179.0 156.7 72.1 2019 2020 2021 2022 H1 2022 H1 2023 2023 E 2019 2020 2021 2022 H1 2022 H1 2023 Cash conversion 83.4% 135.4% 134.8% 100.
Slide 18: Strong Long-Term Performance
Strong Long-Term Performance Net Sales Core EBIT2 Free Cash Flow (in CHF million) (in CHF million) (in CHF million) CAGR +3.8%1 CAGR +15.8%1 CAGR +53.7% 179.0 5’618.6 5’487.9 5’596.2 5’623.8 162.6 107.2 5’337.9 153.3 131.5 111.3 72.1 110.7 51.1 32.1 H1 2019 H1 2020 H1 2021 H1 2022 H1 2023 H1 2019 H1
Slide 19: Continued Strong Balance Sheet with Significant Leverage Potential
Continued Strong Balance Sheet with Significant Leverage Potential in CHF million H1 2022 H1 2023 Continued strong financial metrics: Cash/Liquid assets 598.5 627.5 Trade receivables 2,000.9 1,878.1 • Strong liquidity position maintained and Inventories 1,322.1 1,354.9 even slightly improved Intangi
Slide 20: Additional Financial Indications
Additional Financial Indications FY 2020 FY 2021 FY 2022 H1 2023 FY 2023 Mid-Term Estimate Estimate M&A Further M&A 2.1% 0.8% 1.5% 2.9% 2.5% to 3.0%1 (net sales contribution) ambitions FX (5.1%) (2.0%) (2.6%) (6.7%) (6% to 7%)2 n.a. (net sales contribution) Tax rate 26.1% 27.8%3 27.1% 28.1% 27% to 2
Slide 21: Outlook
4 Outlook Page 21
Slide 22: Outlook
Outlook Current macroeconomic landscape Prospects for 2023 and beyond • Economic recovery in Asia is expected to • DKSH committed to deliver GDP+ sales growth continue in fast growing Asian markets • Strong tourism performance and robust • Core EBIT Growth in 2023 expected1 domestic demand are boost
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