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Another record year for DKSH in 2012

12.03.2013 |  
• Sustainable profitable growth continued in 2012 with a profit after tax increase of 21.3% to CHF 184.7 million – excluding extraordinary income
• Net sales expanded by CHF 1.5 billion (+20.4%) to CHF 8.8 billion, growing at more than double the speed of the markets
• At the same time DKSH generated free cash flow of CHF 249.5 million
• An ordinary dividend of CHF 0.80 (CHF +0.15 compared to prior year) per share and an additional extraordinary dividend of CHF 0.15 from divestment of non-core activity to be proposed at the AGM in April 2013
• Good start into 2013 – another record year with double-digit EBIT growth anticipated

Key figures of DKSH (in CHF millions)

FY 2012

FY 2011

Change

Operating profit (EBIT)

277.3

237.6

16.7%

Profit after tax*

184.7

152.3

21.3%

Net sales

8,834.1

7,340.0

20.4%

Free cash flow

249.5

50.8

391.5%

Earnings per share (in CHF)*

2.79

2.37

17.7%

Ordinary dividend (in CHF)

0.80

0.65

23.1%

Extraordinary dividend (in CHF)

0.15

-

n/a

Specialists at year-end

25,882

24,342

6.3%

*excluding extraordinary income of CHF 24.7 million in 2012 from the sale of non-core contract manufacturing facility OLIC in Thailand


Zurich, Switzerland, March 12, 2013 – DKSH (SIX: DKSH), the leading Market Expansion Services provider with a focus on Asia, reported today another record year 2012. Publicly listed on the SIX Swiss Exchange since March 20, 2012, DKSH achieved Earnings Before Interest and Taxes (EBIT) of CHF 277.3 million, an increase of 16.7% compared to prior year. The company’s profit after tax grew by 21.3% to CHF 184.7 million. Additionally, an extraordinary gain of CHF 24.7 million was achieved through the sale of DKSH’s non-core contract manufacturing plant OLIC in Thailand.


Net sales increased by 20.4% (CHF +1.5 billion) to CHF 8.8 billion, 1.3% growth of which was achieved through M&A. DKSH exceeded the projected 8.3% growth rate of its addressable Market Expansion Services industry, confirming further market share gains.


Free cash flow increased by CHF 198.7 million to a high level of CHF 249.5 million, despite the very strong sales growth of DKSH of CHF 1.5 billion in 2012.


In view of DKSH’s strong financial performance, the Board of Directors will propose an ordinary dividend of CHF 0.80 (CHF +0.15 or +23.1%) per share at the Annual General Meeting in April 2013, in line with its long-term policy of paying out 25%-35% of profit after tax.


Furthermore, the Board of Directors proposes that shareholders will participate in the form of an extraordinary dividend of CHF 0.15 per share in the successful divestment of OLIC.


The payment date for these dividends, if approved by the AGM, is set for April 23, 2013 (ex-dividend date: April 18, 2013, record date: April 22, 2013). The dividends will be paid from reserves from capital contribution and therefore be tax-exempt for Swiss-domiciled private shareholders.


Dr. Joerg Wolle, President & CEO of DKSH, commented: “We are proud of our achievements in 2012, particularly that the capital market has honored these results with the creation of the respective shareholder value. In line with our track record, we have again delivered on our promise to achieve sustainable profitable growth also in 2012. The consistent implementation of our strategy allowed us to substantially outperform the market.”


All four Business Units and regions contributed to this excellent financial performance. DKSH’s strategy for sustainable profitable growth is centered on growing organically, through expanding business with existing clients, multiplying success stories from country to country, and new business development, complemented by strategic bolt-on acquisitions. At the same time, DKSH is continuously strengthening the service offering and increasing the efficiency and performance of its business processes.


Three small bolt-on acquisitions were completed in 2012. DKSH strengthened its Business Unit Technology’s leading position in Market Expansion Services for capital investment goods and analytical instruments through the acquisition of Australia’s specialty cables distributor ElectCables and the takeover of the well-established German-Japanese trading firm Clay in Japan. The latter move also enhances DKSH’s lifestyle business in Japan. Likewise, the acquisition of Swiss specialty chemicals distributor Staerkle & Nagler in November 2012, enabled Business Unit Performance Materials to complement its market leadership in Asia by strengthening its European footprint while expanding its client and product portfolio.


These moves followed on the successful and value-adding acquisitions and integrations in previous years of smaller, traditional trading houses and confirm DKSH’s position as the industry consolidator in the fast growing but still highly fragmented Market Expansion Services industry.


With people being DKSH’s most important asset, the company continues to invest in the skills and training of its employees. By year end, DKSH employed 25,882 specialists worldwide, representing an increase of 1,540 people or 6.3%.


Strong share performance and positive outlook for 2013


DKSH‘s successful IPO (Initial Public Offering) in March 2012 marked a milestone in its almost 150 years of history. The going public of DKSH was well received by the capital market, with a share price increase by 37.3% until the end of 2012 compared to its IPO price of CHF 48.00, equaling an additional CHF 1.1 billion in market capitalization in 2012.


While mature markets like the US or Europe are still facing challenges, companies continue to turn to Asia for growth opportunities. Roland Berger Strategy Consultants expect DKSH’s main markets to perform favorably, with 8.3% growth on average between 2012 and 2017, driven by the rising middle classes in Asia, growing trade flows to and within Asia and the trend for companies to outsource non-core activities.


Commenting on the outlook for 2013 as well as DKSH’s strategy, Joerg Wolle said: “Our business model is highly diversified and scalable for expansion. DKSH is optimally positioned to benefit from these multiple growth drivers. Based on our current market assumptions and from today’s perspective, we believe that we will be able to achieve another record year with double-digit EBIT growth in 2013.”


Analyst and investor conference/webcast


Today's analyst and investor conference at 2:00 p.m. CET will be webcast live:


http://www.dksh.com/data/webcast/130312_Analystscall/dksh130312.html


A recording will be available on the same site as of 5:00 p.m. CET.


Annual Report


The Annual Report 2012 report is available for download at

http://www.dksh.com/htm/1450/en/Reports-and-presentations.htm

About DKSH Group


DKSH is the leading Market Expansion Services provider with a focus on Asia. As the term "Market Expansion Services" suggests, DKSH helps other companies and brands to grow their business in new or existing markets.


Publicly listed on the SIX Swiss Exchange since March 2012, DKSH is a global company headquartered in Zurich. With 680 business locations in 35 countries – 660 of them in Asia – and 25,900 specialized staff, DKSH generated net sales of CHF 8.8 billion in 2012.


The company offers a tailor-made, integrated portfolio of sourcing, marketing, sales, distribution, and after-sales services. It provides business partners with expertise as well as on-the-ground logistics based on a comprehensive network of unique size and depth. Business activities are organized into four specialized Business Units that mirror DKSH fields of expertise: Consumer Goods, Healthcare, Performance Materials, and Technology.


With strong Swiss heritage, the company has nearly a 150-year-long tradition of doing business in and with Asia, and is deeply rooted in communities and businesses across Asia Pacific.

Contact

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DKSH Management Ltd.

8034 Zurich

Head Investor & Media Relations

+41 44 386 7272

+41 44 386 7282