Slide 1: Half-Year Results 2024
Half-Year Results 2024 Media and Investor Conference July 16, 2024 Delivering Growth – in Asia and Beyond. Page 1
Slide 2: Agenda
Agenda Add new picture 1. Highlights H1 2024 2. Business Units Review 3. Financial Update 4. Outlook Page 2
Slide 3: Highlights H1 2024
1 Highlights H1 2024 Page 3
Slide 4: H1 2024 Results Underline Continued Value Creation
H1 2024 Results Underline Continued Value Creation DKSH Value Creation H1 2024 Realization vs. H1 2023 Achieve above GDP1 Growth Net Sales: +3.3% at CER2 net sales growth Core EBIT: +8.2% at CER2 Profitability Expand margin Margin 3.0% (+10 bps) Cash Free Cash Flow: CHF 160.8 million Drive cash conv
Slide 5: H1 2024 Highlights…
H1 2024 Highlights… Increased Client Two Bolt-On High-Performance Operational Excellence Partnerships Acquisitions Culture incl. Digital & Sustainability • Medipharm (Healthcare, Brunei) • Great Place to Work® • Increased productivity Certification in nine markets • Elite Organic (Performance • Cont
Slide 6: More Than 80% of M&A Spend on Higher Profitability Business
More Than 80% of M&A Spend on Higher Profitability Business Business Unit / Line H1 2024 Margin2 M&A Spend3 Since 2019 (in %) 26 Acquisitions Since 2019 Healthcare Own Brands1 >20% ~10% Performance Materials 8.3% ~60% Technology 3.4% ~10% Group margin Healthcare 3.0% ~10% Consumer Goods 2.5% ~10% En
Slide 7: Business Units Review
2 Business Units Review Page 7
Slide 8: Business Unit Healthcare
Business Unit Healthcare Net Sales (in CHF million) • Continued strong net sales growth +5.8%¹ o Expansion with existing and new 2’809.8 2’776.6 clients in Thailand, Malaysia and Taiwan o Above-GDP growth with market share gains in key markets H1 2023 H1 2024 • Focus on higher value-added segments a
Slide 9: Business Unit Consumer Goods
Business Unit Consumer Goods Net Sales (in CHF million) • Mid-term Core EBIT margin target of 2.5% achieved (steady improvement vs. 1.6% in +2.0%¹ H1 2019) 1’788.0 1’703.2 • Net Sales growth of 2.0% in CER • Positioned the business for further profitable growth: H1 2023 H1 2024 • Improving salesforc
Slide 10: Business Unit Performance Materials
Business Unit Performance Materials Net Sales (in CHF million) • Net sales hold up well in a declining H1 market environment -2.6%¹ 767.0 708.4 • H1 2024 sequentially stronger than H2 2023; quarter by quarter improvement • Better momentum across all H1 2023 H1 2024 regions • Improved M&A pipeline Co
Slide 11: Business Unit Technology
Business Unit Technology Net Sales (in CHF million) • M&A driven net sales growth of 3.3% +3.3%¹ (CER) vs. exceptionally strong H1 2023 259.0 252.9 • Continued investments in scientific solutions, precision machinery, and semiconductor industries in Asia • Bio-Strategy acquisition progressing well H
Slide 12: Financial Update
3 Financial Update Page 12
Slide 13: H1 2024 – Continued Good Financial Performance
H1 2024 – Continued Good Financial Performance Net Sales Core EBIT Core EBIT Margin Core Profit After Tax Free Cash Flow (in CHF billion) (in CHF million) (in %) (in CHF million) (in CHF million) Cash Conversion (%) +3.3%1 +8.2%1 +10 bps +16.7%1 168.2% 136.0% 5.6 179.0 5.4 160.8 3.0% 118.2 162.6 163
Slide 14: Strong Core EBIT Growth
Strong Core EBIT Growth Net Sales (in CHF million) Core EBIT (in CHF million) 2.3% 1.0% 5’623.8 3.1% 5.1% 5’441.1 163.6 (1.8)% 162.6 160.6 +3.3%1 (6.5)% (7.6)% +8.2%¹ 2 H1 2023 Organic M&A FX H1 2024 H1 2023 Organic M&A FX H1 2024 Non-core H1 2024 Core EBIT Core EBIT EBIT Organic M&A FX Business Uni
Slide 15: Sustainable Net Sales And Core EBIT Increase Since 2019…
Sustainable Net Sales And Core EBIT Increase Since 2019… Net Sales Core EBIT2 (in CHF billion) (in CHF million) CAGR +3.7%1 CAGR +14.0%1 6.73 6.52 6.07 213.1 5.86 198.9 5.55 169.8 141.6 115.9 153.3 162.6 163.6 5.62 5.60 5.62 131.5 5.34 5.49 5.44 110.7 111.3 H1 2019 H1 2020 H1 2021 H1 2022 H1 2023 H1
Slide 16: …Combined With A Legacy Of Strong Cash Generation
…Combined With A Legacy Of Strong Cash Generation Over The Years Working Capital1 Free Cash Flow (in % of annualized Net Sales) (in CHF million) Ø Cash Conversion: 104.7% 179.0 9.6% 160.8 8.8% 9.1% 8.6% 8.0% 7.8% 107.2 72.1 51.1 32.1 H1 2019 H1 2020 H1 2021 H1 2022 H1 2023 H1 2024 H1 2019 H1 2020 H1
Slide 17: Continued Strong Balance Sheet with Significant Leverage Potential
Continued Strong Balance Sheet with Significant Leverage Potential in CHF million H1 2023 H1 2024 Strong return metrics Cash/Liquid assets 627.5 501.6 Trade receivables 1,878.1 1,860.9 • Further optimized working capital Inventories 1,354.9 1,267.7 • Higher Core RONOC of 19.1% Intangibles 791.9 819.
Slide 18: Additional Financial Indications
Additional Financial Indications FY 2021 FY 2022 FY 2023 H1 2024 FY 2024 Mid-Term Estimate Estimate M&A Increased M&A 0.8% 1.5% 2.1% 1.0% ~1.0%1 (net sales contribution) ambitions FX (2.0%) (2.6%) (7.5%) (6.5%) (4% to 5%)2 n.a. (net sales contribution) Tax rate 27.8%3 27.1% 28.1% 28.2% 27% to 29% 27
Slide 19: Outlook
4 Outlook Page 19
Slide 20: Outlook
Outlook Current Macroeconomic Landscape Prospects for 2024 and Beyond • Economic growth in Asia continues to be • DKSH committed to deliver GDP+1 sales resilient, driven by robust domestic demand growth in fast-growing Asian markets and a continued recovery in tourism (CER) • Stimulus plans in Thail
Slide 21: 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