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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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