Ostasiatiske Kompagni A/s · OMXCOP:OKEAC
Ostasiatiske Kompagni A/s — EAC — H1 2004 Earnings Presentation
31 slides from Ostasiatiske Kompagni A/s's earnings presentation, Aug 24, 2004
Slide 1: H1 Results 2004 & Full-year Outlook
H1 Results 2004 & Full-year Outlook Presentation by: CEO Mark Wilson EVP Group CFO Iqbal Jumabhoy EVP Niels Henrik Jensen Copenhagen, 24 August 2004 1 www.eac.dk
Slide 2: Today's Presentation
TODAY’S PRESENTATION Highlights EAC’s Strategic Agenda H1 2004, EAC’s 4 Strategic Businesses: – EAC Nutrition – EAC Foods – EAC Industrial Ingredients – EAC Moving & Relocation Services Group Financial Statements H1 2004 Group Outlook 2004 2 www.eac.dk
Slide 3: Highlights: H1 2004 / H1 2003
HIGHLIGHTS: H1 2004 / H1 2003 H1 2004: Strong growth in local currencies H1 2004 H1 2003 Group net sales DKK 2,118m DKK 2,025m Net sales – strategic businesses DKK 2,078m DKK 1,974m Growth in local currencies +19% +11% Growth in DKK + 5% - 20% Group Operating Profit DKK 207m DKK 174m Operating Profi
Slide 4: Today's Presentation
TODAY’S PRESENTATION Highlights EAC’s Strategic Agenda H1 2004, EAC’s 4 Strategic Businesses: – EAC Nutrition – EAC Foods – EAC Industrial Ingredients – EAC Moving & Relocation Services Group Financial Statements H1 2004 Group Outlook 2004 4 www.eac.dk
Slide 5: EAC's Strategic Agenda
EAC’S STRATEGIC AGENDA Leading Nutritional Food Co. in Asia Market Organic Brand Supply Acquisi- entries growth building chain tions Countries & New products, A&P about Value chain Businesses segments ingredients & 18% of expansion, & brands flavours etc. net sales new pro- duction units • EAC will
Slide 6: Strategic Initiative Update: High value market segments in EAC Nutrition
EAC’S STRATEGIC INITIATIVE UPDATE High value market segments in EAC Nutrition • Super premium range launched in Malaysia and Singapore continues to exceed expectations • Positive growth pattern in Thailand following launch of new premium brand • Sales momentum of new premium product launched in Chin
Slide 7: Strategic Initiative Update: Maximisation of future value
EAC’S STRATEGIC INITIATIVE UPDATE Maximisation of future value • Entered into an agreement to acquire the minority interests in AFI Focus on Core Business • Divestment of non strategic assets in Malaysia and Singapore producing a one-off gain of DKK 7m 7 www.eac.dk
Slide 8: Strategic Initiative Update: DKK 760m invested in acquisitions 1999-2004
EAC’S STRATEGIC INITIATIVE UPDATE DKK 760m invested in acquisitions 1999-2004 aug-04 AFI (pending) sep-03 Dumex trademark globally nov-03 Hangzhou Future apr-03 Procer CA (51%) oct-03 AFI (additional shares) nov-02 India acquisitions may-01 Ecuadasa (46.5%) feb-01 Dumex Malaysia (20%) oct-00 Global
Slide 9: Strategic Initiative Update: Continued shareholder value creation
EAC’S STRATEGIC INITIATIVE UPDATE Continued shareholder value creation 400 400 EAC Index 300 300 31% CAGR 1.1.00 = 100 in Share Price 200 200 100 100 KFX 0 0 2000 2001 2002 2003 2004 DKK 100m DKK 100m DKK 50m DKK 300m buy- buy-back buy-back buy-back of back of shares of shares of shares shares DKK 7
Slide 10: Today's Presentation
TODAY’S PRESENTATION Highlights EAC’s Strategic Agenda H1 2004, EAC’s 4 Strategic Businesses: – EAC Nutrition – EAC Foods – EAC Industrial Ingredients – EAC Moving & Relocation Services Group Financial Statements H1 2004 Group Outlook 2004 10 www.eac.dk
Slide 11: Nutrition: 12% growth in local currencies
NUTRITION 12% growth in local currencies • H1 net sales grew 12% in local Net Sales H1 2004 currencies; accelerated growth in Q2 of 16% • China delivered double-digit Others growth since February with over 8% China 36% 20% growth in Q2 alone • Dumex Malaysia and India sales ahead of plan Malaysia 29
Slide 12: Nutrition: Sustained leadership in key markets
NUTRITION Sustained leadership in key markets mDKK H1 2004 H1 2003 Change Net sales 924 894 3% EBITA 110 122 -10% Operating profit (EBIT) 103 116 -11% Operating margin 11.1% 13.0% -1.9pp • As expected, operating margin affected by higher advertising and promotion expenditure and the effect of higher
Slide 13: Foods: Sales growth of 33% in USD
FOODS Sales growth of 33% in USD • Continued market share gain in most categories (wiener sausages, turkey products and deviled hams) • Operations of the Food Services unit, targeting the catering sector was succesfully commenced – an untapped sector for EAC Foods • EAC Foods quickly adjusted prices
Slide 14: Foods: All time high H1 operating profit
FOODS All time high H1 operating profit mDKK H1 2004 H1 2003 Change Net sales 571 540 6% EBITA 73 50 46% Operating profit (EBIT) 73 50 46% Operating margin 12.8% 9.3% 3.5pp • Net sales in Venezuela up 33% over H1 2003 in USD • Operating profit was a record for a half-year, despite divestment of Ecua
Slide 15: Industrial Ingredients: Record Q2 net sales
INDUSTRIAL INGREDIENTS Record Q2 net sales • Q2 net sales of DKK 191m, a Net Sales H1 2004 growth of 23% in local currencies Others • The Thai distribution business Philippines Philippines 4% grew by 6% in local currencies 5% 5% Vietnam 29% • The regional distribution business grew by 41% in local c
Slide 16: Industrial Ingredients: Record high H1 operating profit
INDUSTRIAL INGREDIENTS Record high H1 operating profit mDKK H1 2004 H1 2003 Change Net sales 367 326 13% EBITA 56 48 17% Operating profit (EBIT) 56 48 17% Operating margin 15.3% 14.7% 0.6pp • Net sales up 21% over H1 2003 in local currencies • Manufacturing joint ventures delivered growth of 19% in
Slide 17: Moving & Relocation Services: Strengthening markets
MOVING & RELOCATION SERVICES Strengthening markets • All activities recovering in a Net Sales H1 2004 strengthening market • Better than expected result primarily driven by household Other Asia 35% good business and value-added relocation services in Hongkong and China • The general freight forwardi
Slide 18: Moving & Relocation Services: Double digit growth in H1
MOVING & RELOCATION SERVICES Double digit growth in H1 mDKK H1 2004 H1 2003 Change Net sales 216 214 1% EBITA 8 2 - Operating profit (EBIT) 6 1 - Operating margin 2.8% 0.5% 2.3pp • Net sales up 11% over H1 2003 in local currencies • Operating profit improved considerably compared to H1 2003 18 www.e
Slide 19: Today's Presentation
TODAY’S PRESENTATION Highlights EAC’s Strategic Agenda H1 2004, EAC’s 4 Strategic Businesses: – EAC Nutrition – EAC Foods – EAC Industrial Ingredients – EAC Moving & Relocation Services Group Financial Statements H1 2004 Group Outlook 2004 19 www.eac.dk
Slide 20: Group Income Statement: Break-down of group net sales
GROUP INCOME STATEMENT Break-down of group net sales 71% of Net Sales generated in Asia China Other Asia 19% 19% Foods 27% Nutrition 44% Moving & Thailand Relocation 21% South Services America 10% 27% Others Europe Malaysia Industrial 2% 2% 12% Ingred. 17% 20 www.eac.dk
Slide 21: Group Income Statement: Net sales development H1 2003 to H1 2004
GROUP INCOME STATEMENT Net sales development H1 2003 to H1 2004 (mDKK) 900 2,118 800 2,025 (11) +23 700 +68 600 500 +180 400 (278) +111 300 200 100 0 H1 2003 Currency Nutrition Foods II MRS Others H1 2004 21 www.eac.dk
Slide 22: Group Income Statement: Operating profit from H1 2003 to H1 2004
GROUP INCOME STATEMENT Operating profit from H1 2003 to H1 2004 (mDKK) 250 207 200 174 +10 +6 +11 150 (22) (2) +30 100 50 0 H1 2003 Currency Nutrition Foods II MRS Others H1 2004 22 www.eac.dk
Slide 23: Group Income Statement: Operating profit from strategic businesses
GROUP INCOME STATEMENT Operating profit from strategic businesses South China Foods America 25% 31% 30% Nutrition 42% Moving & Other Asia Relocation 1% Services 3% Thailand Malaysia Industrial 29% 15% Ingred. 24% 23 www.eac.dk
Slide 24: Group Income Statement
GROUP INCOME STATEMENT Income statement mDKK H1 2004 H1 2003 Change Net sales 2,118 2,025 +5% Earnings before interest, taxes, 274 246 +11% depreciation and amortisation (EBITDA) Operating profit (EBIT) 207 174 +19% Net financials -2 -1 -100% Tax 61 52 +17% Profit after tax 144 126 +14% Net profit 1
Slide 25: Group Balance Sheet
GROUP BALANCE SHEET Balance sheet DKK m H1 2004 H1 2003 Change Total assets 3,910 4,059 -4% Working capital employed 755 792 -5% Net-interest bearing debt -698 -790 -12% Net-interest bearing debt, average -842 -844 - Invested capital 1,793 1,847 -3% Minority interests 196 170 +15% Equity 2,397 2,569
Slide 26: Today's Presentation
TODAY’S PRESENTATION Highlights EAC’s Strategic Agenda H1 2004, EAC’s 4 Strategic Businesses: – EAC Nutrition – EAC Foods – EAC Industrial Ingredients – EAC Moving & Relocation Services Group Financial Statements H1 2004 Group Outlook 2004 26 www.eac.dk
Slide 27: Group Outlook 2004: GDP development 2003/2004
GROUP OUTLOOK 2004 GDP development 2003/2004 10 8 6 4 Real GDP, % 2 0 -2 -4 -6 -8 -10 Philippines Hong Kong Thailand Singapore China India Venezuela Malaysia Source: Consensus Forecasts Global Outlook, June 2004 27 www.eac.dk
Slide 28: Outlook 2004 – EAC Businesses
GROUP OUTLOOK 2004 Outlook 2004 – EAC Businesses mDKK H1 2004 actual 2004 Outlook Nutrition Net Sales 924m Double-digit growth in local currencies 103m (11.1%) OM slightly above 9% EBIT Foods Net Sales 571m Double-digit USD growth in Venezuela EBIT 73m (12.8%) Operating margin above 11% Industrial I
Slide 29: Outlook 2004 – EAC Group
GROUP OUTLOOK 2004 Outlook 2004 – EAC Group 2003 Outlook 2004 Net sales for Asian businesses +12% Double-digit growth in local currencies and single digit growth in DKK Group operating profit, DKK 316m DKK 350m excl. one-off’s • EAC maintains the overall outlook • Operating profit, excl. one-off’s D
Slide 30: Disclaimer
Disclaimer The outlook for 2004 reflects management’s expectations of future events and must be viewed in the context of the business environments and currency markets, which may cause actual results to deviate materially from those projected by EAC. The outlook for the Group in 2004 assume the curr
Slide 31: Q&A session
Q&A session 31 www.eac.dk