Slide 1: Half Year Results 2022
Half Year Results 2022 Media and Investor Conference July 15, 2022 Delivering Growth – in Asia and Beyond. Page 1
Slide 2: Agenda
Agenda 1. Recap on Strategy and Macro Scenario in Asia 2. Highlights Half-Year 2022 3. Business Units Review 4. Financial Update 5. ESG / Digitalization 6. Outlook Page 2
Slide 3: Recap on Strategy and Macro Scenario in Asia
1 Recap on Strategy and Macro Scenario in Asia Page 3
Slide 4: DKSH ‒ Continued Value Creation for Stakeholders
DKSH ‒ Continued Value Creation for Stakeholders Delivering Growth and Value Creation in Asia and Beyond. Page 4
Slide 5: Macro Scenario in Asia
Macro Scenario in Asia Weighted GDP evolution • Gradual recovery of economies in Asia continues, however speed still volatile 3.6% • Q1 2022 GDP at lower level (+2.7%) 2.6% 2.7% • Inflation is a reality also in Asia, albeit at lower levels 2019 2020 2021 Q1 2022 compared to US and Europe -3.9% Level
Slide 6: Highlights Half-Year 2022
2 Highlights Half-Year 2022 Page 6
Slide 7: HY 2022 – Continued Good Results
HY 2022 – Continued Good Results Net Sales EBIT Profit after tax EPS RONOC Free Cash Flow (in CHF billion) (in CHF million) (in CHF million) (in CHF) (in percent) (in CHF million) +3.7%1 +19.9%1 +24.5%1 +23.4% +170bps (32.7)% 5.5 5.6 153.3 1.58 107.2 105.7 20.4% 131.5 18.7% 1.28 86.7 72.1 H1 2021 H1
Slide 8: M&A an additional growth driver
M&A an additional growth driver Six acquisitions so far in 2022 • 15 acquisitions signed since 2020 Switzerland • In 2022 - Refarmed Group (PM) • Victa Food, Refarmed Group, GBFI and JW Foods (PM) • DNIV (TEC) Germany - GBFI (PM) • Acutest (HEC) - JW Foods (PM) • Solid project pipeline for H2 2022 a
Slide 9: DKSH approach to M&A
DKSH approach to M&A M&A a clear focus; strong project pipeline • DKSH approach to M&A 500 10 • Disciplined approach to M&A 450 7 • All levels of the organization involved and multi-disciplinary 6 approach: BoD, Executive Committee, BUs, M&A, Legal 5 400 4 2 • M&A team located in Europe and Asia-Pac
Slide 10: Business Units Review
3 Business Units Review Page 10
Slide 11: Business Unit Healthcare
Business Unit Healthcare • Solid results with organic growth and • Catch-up effect after the pandemic EBIT margin improvement • Temporary higher demand for COVID • Leaner structure, acquisitions and higher medications share of values-added products • Acquisitions of Acutest in Malaysia Net Sales (in
Slide 12: Business Unit Consumer Goods
Business Unit Consumer Goods • Continue benefitting from a leaner and • Net sales remained broadly unchanged more agile structure, the ongoing product compared to last year portfolio rationalization, and consistent strategy execution across markets • Reasonable product price increases and lower volu
Slide 13: Business Unit Performance Materials
Business Unit Performance Materials • Continued Net Sales and EBIT growth • Acquisition of Victa Food in Italy, benefitting from positive industry demand Refarmed Group in Switzerland, and GBFI and JW Foods in Germany • EBIT increased by 7.5%¹, and excluding Japan, EBIT was up by 16.5%¹ • Good pipel
Slide 14: Business Unit Technology
Business Unit Technology • Strong organic growth and EBIT margin • DKSH is confident that it will continue to expansion in H1 2022 rebound from the pandemic and deliver a strong second half of 2022 • As pandemic-related movement restrictions faded, the service part of the • Acquisition of DNIV in Si
Slide 15: Financial Update
4 Financial Update Page 15
Slide 16: Solid Net Sales Growth
Solid Net Sales Growth Net sales (in CHF million) Organic • Organic growth of +3.0% • Post-COVID recovery in most markets in Asia +0.7% (1.7)% +3.0% M&A 5,596.2 • Six acquisitions with pro-forma annual net sales of over 5,487.9 CHF 150 million • Sound multiples paid and margins accretive • Additiona
Slide 17: Double Digit EBIT Growth
Double Digit EBIT Growth EBIT (in CHF million) • EBIT of CHF 153.3 million corresponds to a double-digit growth in organic terms +2.9% (3.3)% 153.3 +17.0% 131.5 • EBIT growth in all Business Units +19.9%¹ • M&A is margin-accretive H1 2021 Organic M&A FX H1 2022 EBIT margin 2.4% 2.7% Profitability in
Slide 18: Continued Strong Cash Generation
Continued Strong Cash Generation Capex / net sales (%) Free Cash Flow¹ (in CHF million) and Cash Conversion (%) 0.6% 300 0.5% 261.6 0.5% 0.5% 250 0.4% 0.4% 210.2 0.4% 0.4% 200 0.3% 156.7 0.2% 150 139.5 140.6 0.2% 107.2 100 72.1 50 0.0% 2017 2018 2019 2020 2021 H1 H1 2022 E 0 2021 2022 2017 2018 2019
Slide 19: Continued Strong Balance Sheet with Significant Leverage Potential
Continued Strong Balance Sheet with Significant Leverage Potential in CHF million H1 2021 H1 2022 Main changes H1 2022 vs. H1 2021: Cash/Liquid assets 606.3 598.5 • Net cash position1 higher despite higher Trade receivables 2,113.3 2,000.9 dividend Inventories 1,238.1 1,322.1 • Lower working capital
Slide 20: Additional Financial Indications
Additional Financial Indications FY 2020 FY 2021 H1 2022 FY 2022 Mid-term estimate estimate M&A Further M&A (net sales contribution) +2.1% +0.8% +0.7% +1.0%1 ambitions FX -5.1% -2.0% -1.7% -1.5% to -2%2 n.a. (net sales contribution) Tax rate (% of profit before tax) 26.1% 27.8%3 28.3% 27% to 29% 27%
Slide 21: ESG / Digitalization
5 ESG / Digitalization Page 21
Slide 22: Sustainability Highlights 2022
Sustainability Highlights 2022 Our People • 75-point score in employee engagement survey • 29% Women in Senior Leadership (June 2022) ‒ Target of achieving 33% Our Partners Enriching • DKSH joined United Nations Global Compact people’s lives Our Planet • Reduction of own CO2 emission by 40% in 2021
Slide 23: Accelerating Digitalization
Accelerating Digitalization Significant evolution of DKSH’s eCommerce business (in CHF million) Partnership with aCommerce • Since 2015 investment in aCommerce, a leading online B2C 4.2% specialist in Southeast Asia • Successful partnership basis to transfer our eCommerce B2C >20x 3.0% >300 fulfilme
Slide 24: Outlook
6 Outlook Page 24
Slide 25: Future Prospects
Future Prospects Outlook for 2022 • EBIT growth in 2022 expected, assuming: ‒ Economic growth in Asia Pacific ‒ Exchange rates prevail for the remainder of the year ‒ Barring unforeseen events (excluding special items) • Well positioned to benefit from favorable long-term market, industry and consol
Slide 26: 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