Slide 1: Half-year results 2015 Analyst and Investor Presentation
Half-year results 2015 Analyst and Investor Presentation DKSH Holding Ltd. July 13, 2015 © DKSH
Slide 2: Highlights half-year results 2015
Highlights half-year results 2015 Net sales increase by 7.6% to CHF 5.0 billion Operating profit (EBIT) grows by 6.2% to CHF 139.5 million¹ Solid Free Cash Flow of CHF 86.5 million Profit after tax rises double-digit by 15.5% to CHF 105.9 million¹ Transfer of two pharmaceutical brands to CMS and res
Slide 3: Solid operating development
Solid operating development Healthcare Performance Technology Consumer Goods Materials • Further strong • Results impacted • Encouraging results • Continued lower growth by challenging • Management change demand in Thailand, • Good mix of currency situation in the previous year especially for existi
Slide 4: Strategic decisions
Strategic decisions Luxury & Lifestyle sub-segment Transfer of own pharma brands in China • Watch brands impacted by continued lower • Transfer of Combizym and Hirudoid to CMS demand in Asia, ongoing industry consolidation • DKSH continues to source the products for the and appreciation of the Swiss
Slide 5: Rapidly growing middle class in Asia
Rapidly growing middle class in Asia Growing middle class in Asia Pacific1 • By 2030 middle class expected to grow sixfold1 • Growing middle class driving demand for APAC middle class local and international products in % of global middle class 54% 66% • DKSH well positioned to benefit from these 28
Slide 6: Strong inner-Asian trade
Strong inner-Asian trade Origin of DKSH’s key clients • Asia is today already the second largest trading area after Europe, having overtaken America¹ • Inner-Asian trade is expected to rapidly grow Americas Asia as trade barriers between Asian nations fall 30% 30% and local consumer markets develop
Slide 7: Trend towards outsourcing
Trend towards outsourcing • Asia as a target region for companies seeking to grow their business • Strong focus on core competencies leads to increasing demand for outsourcing services • Clients are increasingly outsourcing sales and distribution of their products in Asia to partners like DKSH. This
Slide 8: HY 2015: Results further improved
HY 2015: Results further improved In CHF millions In CHF At CER¹ In CHF H1 2015 in % H1 2015 in % H1 2014 Net sales 4,968.9 7.6% 4,877.2 5.6% 4,618.4 Operating profit (EBIT)² 139.5 6.2% 137.8 4.9% 131.4 Profit after tax² 105.9 15.5% 104.4 13.8% 91.7 RONOC (%)² 24.7 - - - 23.9 Free Cash Flow 86.5
Slide 9: Solid Free Cash Flow
Solid Free Cash Flow Free Cash Flow Comments (Cash Flow from Operations – Capex) • Free Cash Flow of CHF 86.5 million achieved • Balance sheet further strengthened 140 • Low counterparty risk a competitive advantage 120 for client negotiations and collaboration 100 (in CHF millions) 80 60 100.4 40 8
Slide 10: Business Unit Consumer Goods
Business Unit Consumer Goods Financials Comments (in CHF millions) In CHF At CER¹ In CHF • Net sales increased by 4.2% H1 2015 in % H1 2015 in % H1 2014 • Profitability impacted by continued lower demand for premium products, in Net sales 2,013.9 4.2% 1,982.2 2.6% 1,932.3 particular in Thailand,
Slide 11: Business Unit Healthcare
Business Unit Healthcare Financials Comments (in CHF millions) In CHF At CER¹ In CHF • Increase of net sales by 12.4% and EBIT growth of 21.9% H1 2015 in % H1 2015 in % H1 2014 • Strong organic growth Net sales 2,408.9 12.4% 2,328.6 8.6% 2,143.8 Increased volumes with existing clients EBIT2 83
Slide 12: Business Unit Performance Materials
Business Unit Performance Materials Financials Comments (in CHF millions) In CHF At CER¹ In CHF • Net sales growth reached 1.3% H1 2015 in % H1 2015 in % H1 2014 • EBIT impacted by FX effects Net sales 386.6 1.3% 407.0 6.6% 381.7 Costs of raw materials from Asia and Europe, converted into Yen
Slide 13: Business Unit Technology
Business Unit Technology Financials Comments (in CHF millions) In CHF At CER¹ In CHF • Net sales slightly declined by 0.7% H1 2015 in % H1 2015 in % H1 2014 • Management change results in a doubled EBIT Net sales 159.7 -0.7% 159.7 -0.7% 160.8 EBIT 11.2 148.9% 11.3 151.1% 4.5 EBIT margin 7.0% 7.1
Slide 14: Further growth expected
Further growth expected • GDP growth of around 3% for Thailand expected • Opening of new distribution centers creates capacity for further expansion • Strong growth of frontier markets: Vietnam, Myanmar and Cambodia • Bolt-on acquisition of speciality chemicals distributor Andreas Jennow • Decision
Slide 15: Thank you for your attention.
Thank you for your attention. © DKSH
Slide 16: 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 assume