2012 results presentation

8/13/2019 2012 Results Presentation

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2012 Annual Results Highlights

! Overall turnover increased by 1% to

US$20.2bn

! In-line with the Groups profit alert

announced on 11 Jan, 2013, core

operating profit declined 42% to

US$511mm mainly due to LF USA

restructuring

! Net profit declined 8.6%

! The Groups core business remains

strong as a leading global supply

chain management company

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2012 Annual ResultsAnalysis - Net Profit

! Write-back of acquisition payables

of US$326mm

! Excluding write-back of acquisition

payable, Net Profit was

US$297mm


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European sales down by 12%and US sales were up 5%

10% growth in total numberof units

Affected by average pricedecrease of 8%

Solid organic growth inturnover and core operatingprofits

Good operating leveragewith increased customer

base

Overall distribution negativelyaffected by LF USA

LF USA suffered from decreasedmargins, and increasedoperating and restructuring costs

LF Europe business wasbasically flat

LF Asia continues to perform well

2012 Annual ResultsSegment Information by the Three Networks

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LF USA Restructuring2011 - 2012 COP swing

352LF USA

COP Swing

* Discontinued brands designated for either discontinuance,wind-down, or rebuild recorded a loss of US$44mm in 2012 vsUS$38mm of profit in 2011


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Balance Sheet

! Balance sheet with low gearing ratio

of 13% (3)

! Total shareholders funds of

US$4.6bn vs. total net debt of

US$793mm

! Total available bank loan andoverdraft facilities of US$1.4bn

Actual drawdown US$218mm

! Long-term commitment to maintain

an investment grade rating

(1) Including Shareholders funds, perpetual capital securities, and non-controlling interests

(2) Total capital is the sum of net debt and total equity

(3) Net debt divided by total capital


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AcquisitionsSince Interim Results Announcement in Aug 2012

LargeAcquisition

Small roll-upDeals

2012, Aug

BrilliantGlobal

2012, Nov

ForeignResources

2012, Dec

Mint Group

Total initial cash consideration of around US$125 million plus aroundUS$296 million earn-out / earn-up payment for next 3 - 6 years.(1)(2)

Total number of small dealscompleted in 2012 : 9 (2)

Consideration of US$190 million(1),no earn-out, no earn-up

Total number of large dealcompleted in 2012 : 1

2012, Dec

Lornamead

Approximately US$700 million of Annualized Turnover foracquisitions completed in 2012 (2)

(1) Total amount of annualized amortization of intangible around US$8.4 million

(2) The other acquisitions completed in 2012 which were disclosed during Interim Results Announcement onAug 9, 2012 were Algreta/Catalyst, Palamon, Added Extras, Dragon Concept, Lotta Luv and Fashion Lab.

Distribution

Trading Trading

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Outlook for 2013

US consumer market stable and growing moderately Europe: outlook continues to be uncertain

Asia growing moderately

Export prices stabilizing, smaller deflation

Trading network solid

Logistics strong growth from cross selling

LF USA with new management finishing the major restructuring in 2013

Strong focus on 2013

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2012 results presentation

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