Ostasiatiske Kompagni A/s · OMXCOP:OKEAC
Ostasiatiske Kompagni A/s — Santa Fe Group — FY2018 Earnings Presentation
22 slides from Ostasiatiske Kompagni A/s's earnings presentation, 2019
Slide 1: Annual Report 2018
ANNUAL REPORT 2018 We enable people and organisations to work, live and thrive in new places around the world. We make it easy Copyright © Santa Fe Relocation We make it easy
Slide 2: Today's Agenda
TODAY’S AGENDA Full Year Highlights 03 Q4 Highlights 06 Market Trends (Europe, Asia, Americas) 08 Key financial figures 12 Strategy Update 17 Q&A Session 20 Martin Thaysen Christian Møller Laursen Group CEO Group CFO Disclaimer The outlook for 2018 reflects management’s expectations of future events
Slide 3: Highlights
HIGHLIGHTS Copyright © Santa Fe Relocation We make it easy
Slide 4: Battling the Downturn
BATTLING THE DOWNTURN • 2018 proved to be a very tough year with a far more substantial market downturn than expected. • Substantial cost reductions and new client intakes were not sufficient to off-set the decline. • We concluded our exit from the Australian Market through a management buy-out. • T
Slide 5: 2018 Performance Affected by Australia and Impairments
2018 PERFORMANCE AFFECTED BY AUSTRALIA AND IMPAIRMENTS EURm 2018 2017 10.2% decline in revenue in local currencies for the Continuing Revenue 214.2 248.6 Moving & Relocation business EBITDA before special items -1.0 10.4 Special items -2.6 13.1 Continued decline in revenue, countered in part by sign
Slide 6: Full Year Performance by Region and Business Line
FULL YEAR PERFORMANCE BY REGION AND BUSINESS LINE 2018 Revenue 2017 Revenue • Europe remains our most By Segment ( Region) 4% 4% important Sales region. • Asia-based corporates 35% 36% increasingly active in the market for mobility solutions. 61% 60% • Strengthened proposition in Americas had no sig
Slide 7: Q4 Performance
Q4 PERFORMANCE Copyright © Santa Fe Relocation We make it easy
Slide 8: Q4 Highlights
Q4 HIGHLIGHTS • Continued challenging market conditions in Q4, mainly with respect to Moving Services. Revenue growth - Continuing Moving & Relocation businesses • Relocation Services decline is due to a technical Q4-17 reclassification of pass thru cost. Q1-18 • Became close 2nd in important tender
Slide 9: Q4 Performance Europe
Q4 PERFORMANCE EUROPE Growth rates stated in local currencies • 10.0% revenue decline overall European growth rates - 12.6% decline in Moving Services Q4-17 - 3.4% decline in Relocation Services Q1-18 - UK main contributor to the decline Q2-18 (67%), but other main European Q3-18 markets also showin
Slide 10: Q4 Performance Asia
Q4 PERFORMANCE ASIA Growth rates stated in local currencies • 16.9% revenue decline for continuing Asian growth rates - Continuing Moving & Relocation business Moving & Relocation businesses - Drop of 17.2% in Moving Services Q4-17 - Decline driven by lower activity levels Q1-18 Q2-18 from corporate
Slide 11: Q4 Performance Americas
Q4 PERFORMANCE AMERICAS Growth rates stated in local currencies • 33.6% revenue decline Americas growth rates - Loss of clients, with new business Q4-17 secured locally not being sufficient to Q1-18 substitute. Q2-18 Q3-18 • EBITDA of EUR -0.2m (0.3m) Q4-18 - Impact of reduced revenue, combined -35%
Slide 12: Financial
FINANCIAL Copyright © Santa Fe Relocation We make it easy
Slide 13: NIBD Increased Slightly During Q4
NIBD INCREASED SLIGHTLY DURING Q4 (ALL AMOUNTS FOR CONTINUING BUSINESS) • Working capital employed reached EUR 8.3m, unchanged compared to end of 2017. The targeted reduction in overdue receivables has only partially been achieved and remains a focus area. • NIBD increased slightly during Q4. Workin
Slide 14: Key Financial Figures
KEY FINANCIAL FIGURES EURm 2018 2017 Total Assets 128.0 211.8 Working Capital Employed 8.3 7.1 Impairment of goodwill and other intangible assets of Cash & cash equivalents 20.7 18.9 EUR 41.6m Net Interest Bearing Debt, end of period 19.3 12.8 SFG’s share of equity 20.2 83.5 Lower than expected earn
Slide 15: Amended Financing Agreement
AMENDED FINANCING AGREEMENT - Final maturity date 1 April 2020 for total amount EUR 38m - Financial maintenance covenants added – normal covenants - Undertaking restructuring projects to substantially reduce cost levels - Agreement to explore avenues to further strengthen the capital structure durin
Slide 16: Restructuring of the Business
RESTRUCTURING OF THE BUSINESS Copyright © Santa Fe Relocation We make it easy
Slide 17: Responding to the Market Contraction
RESPONDING TO THE MARKET CONTRACTION Adapting Cost Structures: ▪ Expectation of a continuously declining corporate moving market - ~10% decline ▪ Consolidation of warehouse operations in Europe, 4 locations closed down ▪ Phase 1 of further restructuring involving 50 positions implemented during Q1,
Slide 18: Outlook
OUTLOOK Copyright © Santa Fe Relocation We make it easy
Slide 19: Outlook for 2019
OUTLOOK FOR 2019 ▪ Declining global market for corporate relocations ▪ Expecting the Corporate moving market to decline 10-15% ▪ Growth in target segments – Immigration, Relocation Management and Consumers ▪ Adoption of IFRS16 as of 1 January 2019 will have an estimated positive impact of EUR 9m on
Slide 20: Questions
QUESTIONS Copyright © Santa Fe Relocation We make it easy
Slide 21: Additional Information
ADDITIONAL INFORMATION Martin Thaysen Christian Møller Laursen Jesper Dahlsgaard Group CEO Group CFO Group Finance Director T. +44 (0) 20 3691 8300 T. +44 (0) 2089 632 514 T. +45 3525 4300 M: +44 (0) 7741 312 430 M: +44 (0) 7771 553 623 M: +45 6060 6365 Martin.Thaysen Christian.Laursen Jesper.Dahlsg
Slide 22: We Are Santa Fe
WE ARE SANTA FE We enable people and organisations to work, live and thrive in new places around the world. Our mission is to deliver exceptional relocation experiences for our customers. Human and Digital. Consistent and Compliant. Global and Local. The experience is enriched by the integrity, driv