FULL-YEAR RESULTS 2007 & OUTLOOK

Transcription

1 FULL-YEAR RESULTS 2007 & OUTLOOK Presentation by: President & CEO Niels Henrik Jensen Group CFO Michael Østerlund Madsen 28 February 2008 Copenhagen

2 AGENDA Group highlights 2007 Performance Foods Industrial Ingredients Moving & Relocation Services Outlook

3 GROUP HIGHLIGHTS 2007 Revenue DKK 3,586m DKK 4,402m 23% 3

4 GROUP HIGHLIGHTS 2007 Group revenue up 30% in local currencies (LC) Share of Group revenue by business (%) Moving & Relocation Services 14% Foods +41% Industrial Ingredients +19% Moving & Relocation Services +13% Industrial Ingredients 27% Foods 59% 0% 10% 20% 30% Revenue growth in local currencies Outstanding performance from EAC Foods supported by strong results from the two other businesses throughout the year 4

5 GROUP HIGHLIGHTS 2007 Group performance Revenue Operating Profit (EBIT) DKK million 2007 Change % 2007 Change % Foods 2, Industrial Ingredients 1, *98 21 Moving & Relocation Services Main Activities 4, ** EAC Group 4, ** * Excluding non-recurring gain of DKK 9m from financial assets available for sale ** Including non-recurring gain of DKK 9m from financial assets available for sale Growth in Foods driven by continuous strong sales of high-margin products Growth in Industrial Ingredients driven by regional business, up 30% in LC Moving & Relocation grew in all service areas Operating profit in main activities up 96% in local currencies* 5

6 GROUP INCOME STATEMENT 2007 DKK million Revenue 4,402 3,586 Operating profit (EBIT) Net financials Share of profit in associates Gain on disposal of associates *) 15 - Income tax expense Profit from continuing operations Profit from discontinued operations **) 4-21 Net profit Minority interests EAC s share of net profit Negative currency effect: Revenue DKK 277m, EBIT DKK 42m Earnings per share from continuing operations was DKK 29.0 (14.6) *) Disposal of the 30 per cent investment in UNZA Indochina Pte. Ltd. **) Divestment of EAC Trading and the associated company Global Wool Alliance Pvt. Ltd. 6

7 GROUP BALANCE SHEET 2007 DKK million Total assets 2,687 2,760 Working capital employed (WCE) Net-interest bearing debt Net-interest bearing debt, average Invested capital (IC) 1,349 1,021 Minority interests Equity 1,531 1,797 Cash and cash equivalents 546 1,004 High activity level in Foods and acquisitions in II increased WCE & IC Adjusted for currency, IC increased 42% in the three businesses Cash reduced due to share buy back and dividend payment ROIC in aggregate (ann.) for the three businesses was 56.9%* (36.0%) * Excluding non-recurring gain of DKK 9m from financial assets available for sale 7

8 FOODS Revenue DKK 2,024m DKK 2,606m 29% 8

9 Foods MARKET PERFORMANCE Strong Venezuelan economy drives results Increasing oil prices fuel GDP growth and fiscal spending Reduced unemployment and higher disposable incomes drive demand Processed meat volumes at record-high, up 1% over 2006 Focus on high product quality and innovation Volume growth in premium products: Premium sausages up 32% in volumes, 92.5% market share 9

10 Foods STRATEGIC GROWTH AND EXPANSION Focus on capacity expansion and premium products Capacity upgrade of existing facilities initiated Master plan to lift long-term capacity under preparation Increased volumes in premium products Continued product and packaging innovation Revenue DKKm Revenue CAGR 28.8% Operating Margin Operating Margin New 35g deviled ham presentation boosts market shares Food Service Unit enhanced by new products up 49% in USD 10

11 Foods INCOME STATEMENT Revenue grew 41% in USD DKK million Change Revenue 2,606 2,024 29% Operating profit (EBIT) % Operating margin (%) pp Margin improvement based on shift to higher-margin premium products and efficient distribution Operating profit grew 147% in USD 11

12 INDUSTRIAL INGREDIENTS Revenue 19% DKK 1,008m DKK 1,204m 12

13 Industrial Ingredients MARKET PERFORMANCE Accelerating growth in South East Asian business 9% growth in Thai distribution business (local currency) Growth driven by Nickel, Plastics, Rubber and Film Political uncertainty and supply issues 30% growth in South East Asian business in aggregate (LC) Strong growth in Vietnam, Indonesia and the Philippines Positive contribution in H2 from new business in Malaysia Indian business grew 20% 13

14 Industrial Ingredients STRATEGIC GROWTH AND EXPANSION Revenue DKKm CAGR 18.0% Operating Margin India Bangladesh Revenue Operating Margin Thailand Vietnam Cambodia Philippines Malaysia Singapore Indonesia Presence 2005 Market expansion through acquisitions Bulk-on acquisitions 14

15 Industrial Ingredients INCOME STATEMENT Revenue grew 19% in local currencies DKK million Change Revenue 1,204 1,008 19% Operating profit (EBIT) * % Operating margin (%) pp * Excluding non-recurring items of DKK 9m from financial assets available for sale Positive translation effect from appreciated THB Operating profit in the regional business grew 41% in local currencies 13% 6% 4% 3% 2007 revenue per market 3% 53% Thailand Vietnam Philippines Indonesia India Malaysia Others 18% 15

16 MOVING & RELOCATION SERVICES Revenue 7% DKK 554m DKK 592m 16

17 Moving & Relocation Services MARKET PERFORMANCE Continued growth in Asia Revenue grew 13% in local currencies Expansion and high activity level in moving & relocation drove growth Double-digit growth in records management General freight forwarding above 2006 China, Hong Kong, Japan and Thailand well ahead of last year Indonesia, Malaysia and the Philippines below 2006 level New markets fully integrated 17

18 Moving & Relocation Services STRATEGIC GROWTH AND EXPANSION CAGR 9% 10 China South Korea Japan Revenue DKKm Operating Margin India Hong Kong Macao Taiwan Revenue Operating Margin 0 Thailand Vietnam Philippines Malaysia Singapore Indonesia Presence 2005 Market expansion through acquisitions Market expansion, greenfield establishment 18

19 Moving & Relocation Services INCOME STATEMENT Revenue grew by 13% in local currencies DKK million Change Revenue % Operating profit (EBIT) % Operating margin (%) pp Operating profit up 18% in local currencies Strong development in highmargin relocation services and records management drove margin improvement 2007 revenue per market 37% Hong Kong/China Others 63% 19

20 OUTLOOK Full-year revenue E DKK 4.4bn DKK 5.2bn 20

21 EAC BUSINESSES OUTLOOK 2008 Double-digit growth in all businesses Outlook 2008 Full-year 2007 Foods Revenue Around 30% growth in USD DKK 2,606m EBIT/margin Industrial Ingredients Revenue Operating margin around 13% Around 22% growth in local currencies DKK 478m (18.3%) DKK 1,204m EBIT/margin Moving & Relocation Services Revenue EBIT/margin Operating margin above 7% Around 16% growth in local currencies Operating margin around 10% DKK 98m (8.1%) DKK 592m DKK 60m (10.1%) 21

22 EAC GROUP OUTLOOK 2008 Outlook 2008 Full-year 2007 Group revenue Around DKK 5.2bn double-digit growth in DKK and local currencies DKK 4.4bn Group operating profit, excl. non recurring items Around DKK 540m DKK 603m Share of profit in associates DKK 25m DKK 27m Reduction vs related to FX-rates and A/P expenses in EAC Foods The outlook is based on an average exchange rate of DKK/USD 500 Unchanged official exchange rate in Venezuela VEF/USD 2,15 The outlook assumes the continuation of the current macroeconomic environment 22

23 DISCLAIMER The outlook for 2008 reflects management s expectations of future events and must be viewed in the context of the business environments and currency markets, which may cause actual results to deviate materially from those projected by EAC. The outlook for the Group in 2008 assume the current composition of businesses. While the actual results for 2007 have been consolidated using the average exchange rates for the year, the outlook for 2008 is based on an average exchange rate of DKK/USD This could potentially cause variances, depending on movements in exchange rates. 23

24 FULL-YEAR RESULTS 2007 & OUTLOOK Q & A session 28 February 2008 Copenhagen