Slide 1: Investor Presentation February 2020
DKSH Holding Ltd. Investor Presentation February 2020 Page 1 © DKSH
Slide 2: Highlights 2019
Highlights 2019 Increased financial results All Business Units achieved improved underlying performance Progress in restructuring Consumer Goods yields higher results Four value-creating acquisitions Increase in ordinary dividend to CHF 1.90 per share (+2.7%)1 ¹ Proposal of the Board of Directors Pa
Slide 3: Our corporate strategy
Our corporate strategy Focus on existing Strengthen service Increase operational Business Units offering efficiency Focus on growing existing Continuously strengthen Successively improve markets and existing and extend our service efficiency and effectiveness Business Units where we offerings to ens
Slide 4: Focus on existing Business Units
Focus on existing Business Units Organic growth and value-creating acquisitions Priority on organic growth… ... complemented by value-creating acquisitions Annualized net sales (in CHF million) 300 Healthcare Expanded partnerships Outsourcing trend 4 Consumer Goods Strengthened business pipeline 200
Slide 5: Strengthen service offering
Strengthen service offering Expand value-adding services Leading Field Marketing provider Network of 44 innovation centers in Asia Pacific > CHF 100 million eCommerce sales Data analytics and recommendations Page 5 © DKSH
Slide 6: Increase operational efficiency
Increase operational efficiency Good progress Consumer Goods EBIT growing again …. EBIT (in CHF million) 1 160 120 Stabilizing FMCG portfolio +9.8%¹ 80 Maurice Lacroix break-even 40 Added-value acquisitions 0 2013 2014 2015 2016 2017 2018 2019 …. and slightly higher Group EBIT-margin² 1 Excluding re
Slide 7: Business Unit Healthcare
Business Unit Healthcare Underlying business continues to grow Net sales1 • Exit Chinese Healthcare market in 2018 in CHF million • Adjusted business with solid growth 529.1 − Net sales +7.7%1 7.7% 6’014.9 − EBIT +4.6%2 5’583.9 • Challenging market environment in 2018 2019 Hong Kong and Thailand Adj
Slide 8: Business Unit Consumer Goods
Business Unit Consumer Goods Progress in restructuring yields better results Net sales • Despite challenging markets: in CHF million − Net sales +6.8% − EBIT +9.8%1 6.8% 4'120.9 • Key achievements: 3'859.1 − Restructuring yields higher results 2018 2019 − Milestones: Maurice Lacroix, Digital Adjuste
Slide 9: Business Unit Performance Materials
Business Unit Performance Materials Record year Net sales • Record year: in CHF million − Net sales up 5.3% (>CHF 1 bn mark) − Economies of scale result in double 5.3% digit EBIT growth (19.4%) 960.4 1’011.5 • Key achievements: 2018 2019 − Growth with existing and new clients EBIT in CHF million − I
Slide 10: Business Unit Technology
Business Unit Technology Higher net sales and EBIT Net sales • Top- and bottom-line growth: in CHF million − Net sales up 4.8% 4.8% − EBIT grows 11.7% 412.1 431.9 • Key achievements: − Expansion of business line scientific 2018 2019 instrumentation in Asia EBIT in CHF million − Strenghtened service
Slide 11: Financial results 2019
Financial results 2019 in CHF million 2019 2018 % CHF in % CER1 Net sales 11,579.2 11,344.6 2.1 0.3 Adjusted operating profit (EBIT)2 279.9 254.3 10.1 8.1 Operating profit (EBIT) 265.4 263.6 0.7 (1.3) Adjusted profit after tax3 188.0 182.4 3.1 0.8 Profit after tax 176.1 260.3 (32.3) (33.9) Free Cash
Slide 12: Net sales development
Net sales development 3.1% organic growth (in CHF million) 200.2 209.1 354.4 11,579.2 11,344.6 -529.1 -4.7% +3.1% +1.8% +1.8% 2018 Healthcare China Organic M&A FX 2019 Organic: Difference 2019 figures to 2018 figures excluding M&A, FX and Healthcare China M&A: Acquisition Auric Pacific and CTD (Cons
Slide 13: EBIT development
EBIT development Adjusted EBIT grows double-digit (in CHF million) +10.1% 25.6 -14.5 18.2 279.9 263.6 265.4 -27.5 254.3 236.1 2018 Healthcare China Restructuring Adjusted Change Adjusted Restructuring 2019 Consumer Goods 2018 2019 Consumer Goods and Healthcare Page 13 © DKSH
Slide 14: Profit after tax development
Profit after tax development Adjusted profit after tax above last year (in CHF million) 3.1% 17.9 5.6 -75.2 -11.9 -20.6 260.3 188.0 182.4 176.1 176.1 164.5 2018 Gain on sale Profit Healthcare Restructuring Adjusted 2018 Change Adjusted 2019 Restructuring 2019 Healthcare China China Consumer Goods Co
Slide 15: Continued strong balance sheet
Continued strong balance sheet Balance sheet as of December 31, 2019 Assets Liabilities and equity Net Operating Capital (NOC) CHF 1,459.5m Major changes in 2019: Cash CHF 592.6m • Dividend payment of CHF 120.3 million • Acquisitions payments of CHF 191.1 million CHF 2,415.0m • Impact from IFRS 16 T
Slide 16: Free Cash Flow and RONOC
Free Cash Flow and RONOC Free Cash Flow (in CHF million) RONOC (in %) 200 in percentage (%) 2019 2018 156.7 150 140.6 RONOC 19.7 21.3 Impact of 100 Healthcare China - (2.3) 50 Restructuring 1.1 1.3 Acquisitions 0.7 - 0 2012 2013 2014 2015 2016 2017 2018 2019 21.4 20.3 Higher Free Cash Flow: − Improv
Slide 17: Ordinary dividend 2019 by 2.7% higher than last year
Ordinary dividend 2019 by 2.7% higher than last year¹ 1 1.90 1.85 1.65 CAGR 1.50 18.4% 1.30 1.15 0.95 0.80 0.65 0.50 0.35 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Note: Ordinary dividend per share. The chart takes into account share split 1:100, effective since the Annual General Meeti
Slide 18: Embracing a purpose-driven identity at DKSH
Embracing a purpose-driven identity at DKSH … … enriching people’s lives … focusing on growth … creating a culture of empowerment and collaboration Page 18 © DKSH
Slide 19: Confident outlook 2020
Confident outlook 2020 Intact long-term growth drivers Resilient and scalable business model Organic and M&A growth opportunities Outlook Group: Higher adjusted EBIT in 20201 ¹ Assuming stable market and currency conditions Page 19 © DKSH
Slide 20: Capital Market Day 2020
Capital Market Day 2020 Save the Date May 15, 2020 in London (Dinner on May 14) Page 20 © DKSH
Slide 21: Questions & Answers
Questions & Answers Page 21 © DKSH
Slide 22: 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