Ostasiatiske Kompagni A/s · OMXCOP:OKEAC
Ostasiatiske Kompagni A/s — The East Asiatic Company — H1 2012 Earnings Presentation
22 slides from Ostasiatiske Kompagni A/s's earnings presentation, Aug 16, 2012
Slide 1: Presentation of H1 Results 2012
PRESENTATION OF H1 RESULTS 2012 Presentation by: President & CEO Niels Henrik Jensen Group CFO Michael Østerlund Madsen 16 August 2012
Slide 2: Agenda
AGENDA EAC Group • Group highlights Businesses • Santa Fe Group • Plumrose EAC Group • Key factors impacting H1 financial reporting • Financial review • Outlook 2012 Disclaimer The outlook for 2012 reflects management’s expectations of future events and must be viewed in the context of the business
Slide 3: Group Highlights
GROUP HIGHLIGHTS • Consolidated revenue driven by Interdean acquisition and price increases in Plumrose • Difficult macro environment begins to affect both businesses • Dividend payment of DKK 5 per share (DKK 60m excluding treasury shares) in April • Interim dividend from Plumrose of USD 12m paid i
Slide 4: Relocation Services driven by growth
Relocation Services driven by growth 16 August 2012 4
Slide 5: Executing the Strategy
EXECUTING THE STRATEGY • Integration continues according to plan • Coordinated sales and marketing activities throughout the Group • New international blue-chip customers signed on – Contracts only gradually taking effect • As expected Santa Fe Group results affected by both positive and negative sy
Slide 6: Growth in Moving Services driven by Interdean acquisition
GROWTH IN MOVING SERVICES DRIVEN BY INTERDEAN ACQUISITION • Australian growth of 3% driven by international business Revenue by business – Reduced demand and intense competition in domestic segments, H1 2012 market 3.5% 8.1% Moving • Asia declines by 7.7% due to loss of support from agents now in Se
Slide 7: Strong Performance in Relocation Services
STRONG PERFORMANCE IN RELOCATION SERVICES Revenue by business • Relocation Services primarily driven by Interdean acquisition segments, H1 2012 – Strong underlying growth in Europe and Asia 8.1% 3.5% • Australian decrease due to low demand Moving Services Relocation • Strong demand and new customers
Slide 8: Double-digit Growth in Records Management
DOUBLE-DIGIT GROWTH IN RECORDS MANAGEMENT Revenue by business • High activity level results in revenue growth of 19% in LC Segments, H1 2012 – Volumes up 17.6% through continued build-up of storage 3.5% Moving Services levels 8.1% Relocation • Small operations in Spain and Portugal included in the S
Slide 9: Investments Supporting Growth in France
INVESTMENTS SUPPORTING GROWTH IN FRANCE • 6,000 sqm office and warehouse established in Saclay, the technology zone of Paris • Central location – Optimum logistics for moving services – Improvement to HR recruitment programme 15 May 2012 9
Slide 10: Income Statement
INCOME STATEMENT • Revenue growth driven by Interdean acquisition – Revenue growth of 1.1% excluding Interdean in local currencies • EBITDA margin reflects low season and recession in Europe – EBITDA margin excluding Europe was 7.4% DKK million H1 2012 H1 2011 DKK change LC change Revenue 1,162 631
Slide 11: Outlook 2012
OUTLOOK 2012 • Revenue of around DKK 2.5bn (in line with the previous outlook) • EBITDA margin revised to around 7.5% (around 8.5% in previous outlook – Demand for australian domestic moving services not expected to pick up in H2 – Continued slow economic growth in Europe and slower phase-in of new
Slide 12: Challenging business environment
Challenging business environment 16 August 2012 12
Slide 13: Market Development and Key Events
MARKET DEVELOPMENT AND KEY EVENTS • No government initiatives to boost consumption • High inflation erodes purchasing power – Demand in consumer goods market continues decline • Strong brands, marketing and product launches support sales – Only slight decrease in volumes of own branded products, gro
Slide 14: Income Statement
INCOME STATEMENT • Revenue growth driven by price increases and increased volumes of fresh meat, co- packing, pigs and feed stuff • EBITDA margin affected by: • Increased raw material prices • Salary increases for blue-collar workers as of March • Increased A&P spending • Increased revenue-based tax
Slide 15: Outlook 2012 Revised
OUTLOOK 2012 REVISED (IAS 29) • Revenue at around DKK 6.0bn (around DKK 5.6bn in the previous outlook) – Outlook based on DKK/USD 600.00 exchange rate (DKK/USD 560.00 in the previous outlook) • EBITDA margin around 6.5% (around 9.5% in the previous outlook) due to: – Higher costs of sales – Increasi
Slide 16: H1 – On Plan, H2 – Margins Under Pressure, Outlook Revised
H1 – ON PLAN H2 - MARGINS UNDER PRESURE OUTLOOK REVISED 16 August 2012 16
Slide 17: Key Factors Impacting H1 Financial Reporting
KEY FACTORS IMPACTING H1 FINANCIAL REPORTING • Plumrose reported under hyperinflation (IAS 29) – Translation to DKK at DKK/USD exchange rate 590.42 at end of period (DKK/USD 516.07) • Acquisition of Interdean and La Montserratina • Favourable exchange rates relative to DKK 16 August 2012 17
Slide 18: Group Income Statement
GROUP INCOME STATEMENT DKK million Historical Reported Reported H1 2012 H1 2012 H1 2011 Revenue 3,378 3,527 2,332 EBITDA 232 167 177 EBITDA margin (%) 6.9 4.7 7.6 Operating profit (EBIT) 168 53 96 Operating margin (%) 5.0 1.5 4.1 Financials, net - -30 -61 Income tax expense 29 56 37 Net loss for the
Slide 19: Group Balance Sheet
GROUP BALANCE SHEET DKK million Reported 30.06.2012 Reported 31.12.2011 Total assets 6,288 6,095 Working capital employed (WCE) 1,306 1,423 Net interest bearing debt (EOP) 1,361 1,234 EAC’s share of equity 2,630 2,680 Cash and cash equivalents 565 629 Equity ratio (%) 41.8 44.0 Return on invested ca
Slide 20: Outlook Revised for 2012
OUTLOOK REVISED FOR 2012 • Consolidated revenue of around DKK 8.5bn (around DKK 8.1bn in the previous outlook) • Consolidated EBITDA margin of around 6.5% (above 8.5% in the previous outlook) • Outlook based on an average exchange rate of 600.00 DKK/USD (DKK/USD 560.00 in the previous outlook) • Off
Slide 21: Corporate Communications & Investor Relations
CORPORATE COMMUNICATIONS & INVESTOR RELATIONS Niels Henrik Jensen President & CEO Telephone: +45 3525 4300 Mobile: +45 2023 2188 E-mail: nhj@eac.dk Shareholders' Secretariat The East Asiatic Company Ltd. A/S East Asiatic House, 20 Indiakaj Michael Østerlund Madsen DK-2100 Copenhagen Ø Group CFO Denm
Slide 22: Q&A
Q&A 16 August 2012
The East Asiatic Company — H1 2012 Earnings Presentation on 6ix