Slide 1: Half-Year 2013 Analyst and Investor Presentation
Half-Year 2013 Analyst and Investor Presentation DKSH Holding Ltd. August 13, 2013 © DKSH
Slide 2: Welcome to the DKSH Half-Year 2013 Analyst and Investor Presentation
Welcome to the DKSH Half-Year 2013 Analyst and Investor Presentation Page 2 © DKSH
Slide 3: Excellent first half 2013 results
Excellent first half 2013 results Change In CHF millions H1 2013 H1 20121) in % Net sales 4,754.5 4,160.0 14.3% Operating profit (EBIT) 142.8 125.9 13.4% Profit after tax 104.9 80.2 30.8% Free cash flow 170.8 50.8 236.2% Earnings per share (in CHF) 1.60 1.23 30.1% Number of specialists2) 26,263 25,8
Slide 4: Continuation of our track record
Continuation of our track record Half-Year 2013 highlights Sustainable profitable growth – high double-digit profit increase Net sales growth outperforms the projected 8.3% growth rate of its addressable markets1) Further market share gains Proof for resilience of our business model Excellent free c
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: 8.3% p.a. until 20171) • Growth drivers: − Rise of the middle class in emerging markets − Stronger inner-Asian trade − Trend towards outsourcing MES growth pr
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 sixfold APAC middle class • Growing middle class driving demand for local in % of the global middle class 54% 66% and international products 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 overtaken 1) Asia North America 25% • Inner-Asian trade is expected to rapidly grow as trade barriers between Asian nations decline (e.g. in ASEAN) and local con
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 sales and profit growth
Excellent sales and profit growth Financials Comments (in CHF millions) H1 2013 H1 20121) Change % • Net sales growth of 14.3% Net sales 4,754.5 4,160.0 14.3% • Profit after tax increased by 30.8% − Operational efficiency and EBIT 142.8 125.9 13.4% economies of scale Profit before tax 142.4 117.5 21
Slide 11: Strong organic growth
Strong organic growth (CHF m) Net sales by region Comments • Strong net sales growth of 14.3%, mainly Thailand driven by organic growth 36.7% − Increased volumes with existing clients Rest of World − Rolling out success stories from country to 3.8% country − Successful business development Rest of A
Slide 12: Excellent free cash flow
Excellent free cash flow Free cash flow Comments (EBITDA - Capex - SWC1)) • Positive free cash flow despite strong sales 300 growth FY: 252 • Strong free cash flow increase in H1 2013 250 supported by − High EBITDA (in CHF millions) 200 − Decrease in working capital 150 • Result: balance sheet furth
Slide 13: Business Unit Consumer Goods
Business Unit Consumer Goods Financials Comments (in CHF millions) H1 2013 H1 2012 Change % • Strong net sales and EBIT growth of 13.3% and 12.1% respectively Net sales 2,094.3 1,848.6 13.3% • Variety of clients and markets contributed to EBIT 79.9 71.3 12.1% growth • Solid organic growth across the
Slide 14: Business Unit Healthcare
Business Unit Healthcare Financials Comments (in CHF millions) H1 2013 H1 2012 Change % • Excellent net sales growth of 19.4% and outstanding EBIT growth of 30.3% Net sales 2,098.4 1,757.6 19.4% • Solid organic growth across the region EBIT 55.5 42.6 30.3% − Increased volumes with existing clients E
Slide 15: Business Unit Performance Materials
Business Unit Performance Materials Financials Comments (in CHF millions) H1 2013 H1 2012 Change % • Net sales growth of 6.7% • Negative impact of Yen depreciation and Net sales 394.1 369.5 6.7% associated hedge accounting EBIT 29.1 31.2 -6.7% • Postponement/cancellations of some projects in view of
Slide 16: Business Unit Technology
Business Unit Technology Financials Comments (in CHF millions) H1 2013 H1 20121) Change % • Strong negative impact from currency fluctuations and associated hedge accounting Net sales 169.9 185.7 -8.5% treatment EBIT 6.1 10.2 -40.2% • Certain operational issues further contributed to disappointing r
Slide 17: First half is a strong foothold for full year 2013
First half is a strong foothold for full year 2013 Outlook for full year 2013: 1 Growing middle classes in Asia Sales growth at least in line with projected addressable markets 2 Increasing inner-Asian trade growth of 8.3%1) Double-digit profitable growth 3 Trend towards outsourcing Guidance confirm
Slide 18: Thank you for your attention
Thank you for your attention © DKSH
Slide 19: 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