Ostasiatiske Kompagni A/s · OMXCOP:OKEAC
Ostasiatiske Kompagni A/s — The East Asiatic Company — Q1 2012 Earnings Presentation
20 slides from Ostasiatiske Kompagni A/s's earnings presentation, May 15, 2012
Slide 1: Presentation of Q1 Results 2012
PRESENTATION OF Q1 RESULTS 2012 Presentation by: President & CEO Niels Henrik Jensen Group CFO Michael Østerlund Madsen 15 May 2012
Slide 2: Agenda
AGENDA EAC Group • Group highlights Businesses • Santa Fe Group • Plumrose EAC Group • Key factors impacting Q1 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 fuelled by Interdean acquisition and price increases in Plumrose • Strong EBITDA contribution from Plumrose given stable raw material costs and fixed cost increasing below inflation • Dividend payment of DKK 5 per share (DKK 60m) in April • Interim dividend fr
Slide 4: Continued stable market conditions with overall growth in international relocations
Continued stable market conditions with overall growth in international relocations 15 May 2012 4
Slide 5: Executing the Strategy
EXECUTING THE STRATEGY • Integration continues according to plan • Group sales conference and implementation of sales management system • Executive summit to promote cultural integration • Strong commitment throughout organisation • Direct comparison of Santa Fe results complicated by positive and n
Slide 6: Market Development by Region
MARKET DEVELOPMENT BY REGION • Positive market development with growth in international Revenue by geographic relocations continued in 2012 region, Q1 2012 • Dedicated cross-regional sales and marketing efforts attract Asia new customers and accounts EMEA 25% 40% • Strong growth in Australian intern
Slide 7: Market Development by Business Segment
MARKET DEVELOPMENT BY BUSINESS SEGMENT • Moving services driven by acquisition and underlying growth Revenue by business – Modest overall growth in Australia segments, Q1 2012 – Strong activity in Asia despite negative acquisition synergies – Europe on par with 2011, strong growth in the Middle East
Slide 8: Income Statement
INCOME STATEMENT • Revenue growth driven by Interdean acquisition – Revenue growth of 2.7% excluding Interdean in local currencies • EBITDA margin affected by low season and low-margin product mix in Europe – EBITDA margin of 8.8% excluding Europe – up 10.5% DKK million Q1 2012 Q1 2011 DKK change LC
Slide 9: Outlook 2012 Maintained
OUTLOOK 2012 MAINTAINED • Revenue of around DKK 2.5bn • EBITDA margin of around 8.5% • Continued positive trends in worldwide mobility industry • Strong Australian economy • Continued FDI flow into Asia • Low growth in European economies 15 May 2012 9
Slide 10: Sales growth above inflation despite challenging market conditions
Sales growth above inflation despite challenging market conditions 15 May 2012 10
Slide 11: Market Development and Key Events
MARKET DEVELOPMENT AND KEY EVENTS • Intensive advertising and promotion activities support brand recognition and overall market position – New social media campaigns launched • Product launches support sales in continued declining market – Market for cold cuts fell 5% during Q1 • Investments expand
Slide 12: Income Statement
INCOME STATEMENT • Revenue growth driven by price increases and increasing volumes • Volumes up by 2.4% - primarily driven by La Montserratina • Strong EBITDA margin affected by price increases, stable raw material prices and fixed costs rising below inflation level DKK million Q1 2012* Q1 2011* DKK
Slide 13: Outlook Maintained for 2012
OUTLOOK MAINTAINED FOR 2012 (IAS 29) • Revenue at around DKK 5.6bn (in line with previous outlook) • EBITDA margin at around 9.5 per cent (in line with previous outlook) • Estimated inflation of around 22% • GDP growth of around 4.5% (3.7% in previous outlook) due to higher oil prices • New labour l
Slide 14: Q1 progressed as expected in both businesses. Outlook maintained
Q1 PROGRESSED AS EXPECTED IN BOTH BUSINESSES. OUTLOOK MAINTAINED 15 May 2012 14
Slide 15: Key Factors Impacting Q1 Financial Reporting
KEY FACTORS IMPACTING Q1 FINANCIAL REPORTING • Plumrose reported under hyperinflation (IAS 29) – Translation to DKK at USD/DKK exchange rate at end of period • Acquisition of Interdean and La Montserratina 15 May 2012 15
Slide 16: Group Income Statement
GROUP INCOME STATEMENT DKK million Historical Reported Reported Q1 2012 Q1 2012 Q1 2011 Revenue 1,631 1,634 1,109 EBITDA 123 99 62 EBITDA margin (%) 7.5 6.1 5.6 Operating profit (EBIT) 92 47 23 Operating margin (%) 5.6 2.9 2.0 Financials, net - -31 -40 Income tax expense 13 22 36 Net loss for the pe
Slide 17: Group Balance Sheet
GROUP BALANCE SHEET DKK million Reported 31.03.2012 Reported 31.03.2011 Total assets 5,835 4,345 Working capital employed (WCE) 1,252 680 Net interest bearing debt (EOP) 1,159 -33 EAC’s share of equity 2,592 2,158 Cash and cash equivalents 485 1,159 Return on invested capital (%) 9.8 10.8 Equity rat
Slide 18: Outlook Maintained for 2012
OUTLOOK MAINTAINED FOR 2012 • Consolidated revenue of around DKK 8.1bn • Consolidated EBITDA margin of above 8.5% • Outlook based on an average exchange rate of 560.00 DKK/USD • Official exchange rate in Venezuela assumed at VEF/USD 4.30 15 May 2012 18
Slide 19: 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 20: Q&A
Q&A 15 May 2012
The East Asiatic Company — Q1 2012 Earnings Presentation on 6ix