1st Quarter Report and Presentation May 2001 The East Asiatic Company Ltd. A/S

Transcription

1 1st Quarter Report and Presentation May 2001 The East Asiatic Company Ltd. A/S The East Asiatic Company Ltd. A/S

2 Agenda Results and Highlights for 1st Quarter 2001 EAC s Four Strategic Businesses Outlook for 2001

3 Continued strong performance Net sales in strategic businesses, +22% compared to same period last year. Operating result, strategic businesses, +45% compared to same period last year. After adjusting for the non-recurring items, operating result of underlying operations grew 51% to DKK 110m Result before tax is a profit of DKK 181m, against DKK 72m same period last year

4 Highlights and Restructuring Disposed 4% portfolio shareholding in a Chinese company, net gain of DKK 75m included under financing. The Danish Companies Appeals Board (Erhvervsankenævnet) rules in favour of EAC in pension case. Change in accounting policy following the implementation of deferred tax accounting in Danish GAAP (Regnskabsvejledning 14) Increased shareholding in Dumex Malaysia and investment in land and warehousing to cater for future expansion.

5 1st Quarter Profit and Loss Account Q1 Full Year DKK million Net sales 1,843 1,987 7,768 Operating result Financial expenses, net Result of ordinary activities before tax Minority interests EAC s share of net result

6 Strategic Businesses, Growth Net Sales by Industry Segments: 1st Quarter DKK million /00 Nutrition % Foods % Industrial Ingredients % Moving and Relocation % Subtotal 1, % Other activities % Disposed businesses Total 1,843 1,987-7%

7 Net Sales by Segments Industrial Ingredients 12% Foods 39% Moving & Relocation Services 8% Strategic Businesses Only Nutrition 41%

8 Profitable Growth Operating Result by Industry Segments: 1st Quarter DKK million /00 Nutrition % Foods % Industrial Ingredients % Moving and Relocation % Subtotal % Other, net 0 30 Total Operating Result %

9 Operating Result by Segments Moving & Relocation Services 7% Industrial Ingredients 13% Foods 25% Nutrition 55%

10 Profitable Growth Operating Result for the Group: 1st Quarter DKK million /00 Result of underlying operations % Items not directly related to the recurring operations, net Total operating result %

11 Reduced Financing Expenses Financing net: 1st Quarter DKK million /00 Financing expenses, net % Income from sale of financial assets 75 Financing, net 61-41

12 Deferred Tax - P&L Effect of change in accounting principle: 1st Quarter DKK million /00 Result of ordinary activities % Income tax Deferred tax adjustment 19 1 Total tax % Result after tax of ordinary activities %

13 Deferred Tax - Balance Sheet Effect of change in accounting principle: 1st Quarter DKK million /00 Total assets 5,467 4, % - Deferred tax asset % After change 5,643 5,188 +9% Total shareholders equity 2,556 2, % - Deferred tax effect % After change 2,720 2, %

14 Balance Sheet Key Figures 6,000 5,000 DKK million 4,000 3,000 2,000 1,000 0 Total Assets +23% Group Equity +28% EAC's Share of Equity Net Interest Bearing Debt, Year End Q1/2000 Q1/2001

15 Ratios Improved Profit & Loss Ratio: 1st Quarter /00 Operating margin 6.0% 3.7% +2.3% Balance Sheet Ratio: DKK million Total assets 5,643 5,188 +9% Total equity 2,720 2, % Equity ratio 48% 43%

16 EAC s Four Strategic Businesses N utrition Foods In dustri al In gredie nt s Mo ving & Re locat ion Servic es

17 EAC Nutrition EAC Nutrition develops, produces and markets infant and child nutrition products in Asia EAC Nutrition is a market leader EAC s own brand: Dumex Sub-brands: Mamex, Mamil, Protimex

18 EAC Nutrition

19 Continued High Growth Key Figures: 1st Quarter DKK million /00 Net sales % Operating result % Operating margin 13.3% 13.7%

20 Highlights Sales up 21% in DKK, vs. 1st quarter 2000 and 20% vs. 4th quarter Sales growth particular strong in China, +36% compared to same period last year. Stronger pressure from competitors, especially in Thailand. Improved margin a result of better product mix and forward milk powder purchasing. Completion of the acquisition of additional 20% shareholding in Dumex Malaysia.

21 Outlook for Year 2001 EAC Nutrition expects double digit growth in sales. Growth driven by expansion in China/ Philippines and new product launches in Malaysia and Thailand. Operating margins expected to be similar to last year (10.5%).

22 EAC Foods A strong No. 1 manufacturer and distributor of processed meat products in Venezuela and Ecuador Plumrose in Venezuela accounts for 96% of group sales Key brands: Plumrose and Oscar Mayer Fifth largest food company in Venezuela

23 EAC Foods We produce approx sausage packages per week

24 Strong performance Key Figures: 1st Quarter DKK million /00 Net sales % Operating result % Operating margin 6.4% 2.4%

25 Highlights Sales in 1st quarter were 24% above same period last year driven by new product launches. Operating margin significant higher by continued improvement in operating efficiency. Improved economies in Venezuela and Ecuador. New central warehouse in Cagua now in operation - expected to generate significant savings in distribution costs.

26 Outlook for Year 2001 Venezuelan and Ecuadorian economies expected to continue recovery. Continue aggressive new product launch strategy - sales improvement at least 10%. Higher operating margin due to improved operating efficiencies. Quality and cost/efficiency improvements with a full year of service from pig farm Profits well ahead of 2000 anticipated.

27 EAC Industrial Ingredients Leading independent distributor of industrial ingredients in Thailand and Vietnam Growing presence in other major markets of Southeast Asia Production Joint Ventures in Thailand

28 Sales up 20% in local currency Key Figures: 1st Quarter DKK million /00 Net sales % Operating result % Operating margin 11.4% 12.0%

29 Highlights Sales growth measured in local currency is 20% ahead of same period last year. Higher competitive pressure resulted in slightly lower operating margin Results from joint ventures better than last year despite continued weak agricultural sector

30 Outlook for Year 2001 Economic outlook influenced by industrial activity in main markets Thailand distribution; increased sales, but pressure on margins - expansion of supplier-base Regional distribution; continuing strengthening in Vietnam and Philippines - expand regional representation Joint Ventures; opportunities to divest minority shareholdings continue to be evaluated A satisfactory result expected, but not on par with year possible gains from divestment of joint venture

31 EAC Moving & Relocation Services Key brands: Santa Fe & Global Silverhawk Leading regional player in the Asian markets for premium household goods removals, office relocations, relocation services, records management and freightforwarding services.

32 Premium Relocation Specialist Key Figures: 1st Quarter DKK million /00 Net sales % Operating result % Operating margin 8.9% 3.3%

33 Moving ahead of the rest Reception by the trade of the acquisition of Global Silverhawk very positive. Increased activities in China, Hong Kong, Singapore, Malaysia and Thailand as a result of the merger. Market conditions in Indonesia and Philippines are unsettled and volumes are lower than same period last year. Economy in Japan is stagnant and activity level on par with last year.

34 Outlook for Year 2001 General market conditions stable Consolidation of the Global Silverhawk and Santa Fe organisations completed by 1st quarter Roll out Quality System software to all offices Sales expected to increase to around DKK 500m. Increased intra-regional activities compensate for weaker outbound market. Due to synergies, operating profit approximately 70% above year 2000 and operating margins at above 6.5%

35 Other Activities

36 Other Activities Key Figures: 1st Quarter DKK million /00 Net sales % Operating result 15 48* -69% * Including profit on divestment of property rights.

37 Other Activities Sales significantly increased in EAC Holdings, but at a very low margin. Technical in Japan and Nigeria - good performance; Malaysia weak. Overall on comparable basis a result under last year is expected.

38 The East Asiatic Company Ltd. A/S The East Asiatic Company Ltd. A/S Industrial Ingredients

39 Economic Growth in Key Markets 15% 10% 5% 0% -5% -10% China Hong Kong Indonesia Malaysia Philippines Singapore Thailand Venezuela e Source: Foreign Exchange Consensus Forecasts

40 Outlook 2001 EAC Nutrition expects double digit growth in sales/operating result and similar operating margins EAC Foods expect increase in sales of at least 10% and profits well ahead of year 2000 EAC Industrial Ingredients expects a satisfactory result although weaker Thai Baht may affect comparison. Positive effect from one-off. EAC Moving & Relocation expects sales increase to around DKK 500m, an operating profit approximately 70% higher than year 2000 and operating margins above 6.5%

41 Outlook 2001 Overall profit before tax above DKK 400m Net result from ongoing businesses expected to increase at least 25% 1) vs (previously expected 20%) 1) Effect from accounting change for deferred tax - included in target above

42 Thank you! Any Questions? The East Asiatic Company Ltd. A/S The East Asiatic Company Ltd. A/S