On Track to Meet Strategic Growth Targets

Transcription

1 The Shard, London On Track to Meet Strategic Growth Targets Roadshow August 2012

2 2 Short List World market leader in construction chemicals Highly focused industrial portfolio Successful growth strategy Active in markets with structural growth Technology leadership ensures healthy margins Solid balance sheet guarantees freedom of action

3 Sika Technology Center, Zurich 3 Overview

4 4 Milestones 1910 Foundation by Kaspar Winkler First product: Sika 1 (waterproof mortar) Waterproofing of Gotthard railway tunnel 1935 First large-scale use of Plastiment, plasticizer 1968 Launch of membranes Launch of Sikaflex 1A (elastic sealing and bonding) 1968 Going public at SIX Swiss Exchange 1983 Introduction of Industry Division 2000 Launch of Sika ViscoCrete More than 50 small to medium-sized acquisitions 2005 Acquisition of Sarna Polymer Holding Inc., Switzerland th anniversary

5 A Century of Innovation 5

6 6 Some Key Figures Sales CHF bn EBITDA CHF mn Presence in 5 continents and 76 countries Over 120 plants employees

7 7 Net Sales by Regions 2011 Other segments 5% IMEA 6% Asia/Pacific 17% Europe North 29% Latin America 11% North America 14% Europe South 18% Emerging markets: 36%

8 8 Net Sales by Markets 2011 Industry 19% Construction 81%

9 Sales and EBIT Development Sales (in CHF mn) Organic growth (in %) 13.3% 5.9% -6.2% 6.1% 11.6% EBIT (in CHF mn) EBIT margin (in %) 11.2% 9.1% 9.6% 9.9% 7.6%

10 One New Change, London First Half-Year 2012

11 11 Main Issues First Half-Year 2012 Sales growth of 3.4% to CHF million (6.4% in local currencies) 10.7% growth in emerging markets in local currencies Gross result improved 51.9% to 53.1% EBIT increased by 10.1% to million Bond 6 year duration of CHF 150 million with coupon of 1.0% 10 year duration of CHF 150 million with coupon of 1.75%

12 12 Consolidated Income Statement (in CHF mn) Actual Actual HY 2011 % NS HY 2012 % NS Growth Net Sales 2' % 2' % 3.4% Material expenses -1' '081.5 Gross result 1' % 1' % 5.9% Personnel expenses % % 7.4% Other operating expenses % % 2.6% EBITDA % % Depreciation / Amortization / Impairment % EBIT % % 10.1% Financial expense Income taxes Net profit % % 11.0% Tax rate 32.3% 29.6% Op. Free Cash Flow % %

13 13 Net Sales HY 2012 (in CHF mn) % Net sales Organic growth Acquisition effect Currency effect

14 CHF mn Half-Year Net Sales Development 14 2'400 2'300 2'200 2'262 2'231 2'307 2'100 2'000 1'900 1'983 2'094 1'

15 CHF mn Sales Growth by Region (in CHF mn) at act FX rates incl. acquisition impact LC Act FX Automotive IMEA +35.9% +31.7% +10.1% +2.0% Latin America +16.6% +10.7% Asia/Pacific North America +2.1% +13.9% +4.7% +15.1% 500 Europe South +2.8% -2.0% 591 Europe North -2.7% -7.5% 0 HY 2012

16 CHF mn 16 Net Sales by Markets 2'500 Growth in Local Currencies 2' Industry '500 1'000 1'826 Construction +4.8% HY 2012

17 17 Material cost 1 st half year at a similar level as in previous year Sales Price increases showed positive impacts in the last 3Q HY % 51.7% 55.2% 54.0% 50.6% 51.9% 54.0 Gross result development 12month average

18 CHF mn Half-Year EBIT Development Half Year Full Year

19 NWC in CHF mn 19 Development of Net Working Capital 1'400 1'200 1' HY in MCHF FY in MCHF

20 20 Key Figures in CHF mn HY 2011 HY 2012 change in % Net Sales 2' ' % Gross Result 51.9% of NS 53.1% of NS EBIT % Net Income after taxes % Cash Flow from Operating Activities Earnings per share in CHF

21 Sutong bridge, Yangtze Outlook 2010 / 2011 Vision and Strategy, Growth Drivers

22 22 Vision and Strategy 1. Become the market leader in our target markets 2. Market penetration: - from roof to floor (cross-selling) - from new built to refurbishment (life-cycle) - push and pull market channels (branding) 3. Leadership (Innovations) in technology and sustainability 4. Accelerate build up of emerging markets with supply chains and technical competence 5. Leverage growth and lead market consolidations with acquisitions

23 Vision and Strategy Market Potential by Target Market 23 60'000 > CHF 50 billion (total market potential) 50'000 7'200 40'000 30'000 20'000 10'000 5'400 6'500 7'000 8'200 4'000 7'200 8'200 8'300 9'200 5'100 8'700 Concrete Waterproofing Sealing & Bonding Roofing Flooring Refurbishment Industry 0 4'900 6'

24 Vision and Strategy Market Positions by Target Market 24 Target Market Global No. 1 Sika's Position Concrete BASF 2 Waterproofing Sika 1 Roofing Soprema 3 Flooring Sika 1 Industry Henkel 2

25 Vision and Strategy Financial Targets 25 Targets Year average Organic Sales growth (in LC) EBITDA in % Net sales Profit in % Net sales OpFCF in % Net sales ROCE in % (EBIT based) 8-10% 13.3% 5.9% -6.2% 6.1% 11.6% 6.1% 12-14% 13.9% 12.0% 13.0% 13.1% 10.5% 12.5% >6% 7.5% 5.8% 6.5% 7.0% 4.7% 6.3% 4-6% 4.2% 3.6% 8.9% 7.5% 4.1% 5.7% 20-25% 26.0% 20.3% 19.3% 21.3% 15.6% 20.5%

26 Growth Leverage Through Acquisitions 26 Acquisition is part of strategy More than 50 acquisitions since 2000 Fragmented market demands consolidation Acquisition strategy focuses on: Market access Related technologies Sika follows integration principle with excellent track record

27 Growth Leverage Through Acquisitions Sika Realized 8 Acquisitions in Company Country Region Target Market Hebei China Asia/Pacific Concrete Gulf Bahrain IMEA All Biro Switzerland Europe North Industry Technokolla Italy Europe South Refurbishment Colauto Brasil Latin America Industry Copsa Spain Europe South Refurbishment Duochem Canada North America Flooring Axim Global Global Concrete

28 28 Acquisition of Hebei (sales of CHF 33 million) Market access driven acquisition in China Located in the north of China, 280 km SW of Beijing Track record of successful acquisitions: Sichuan Keshuai (2008) Jiangsu TMS (2009)

29 29 Acquisition of Colauto (sales of CHF 40 million) Market access driven acquisition in Brazil Brazil is 6 th largest car manufacturing country South American car production estimated to grow from 3.6 million cars in 2009 to 5.6 million in 2015 Colauto is strong number 2 in sealants/adhesives

30 30 Acquisition of Axim (sales of CHF 75 million) Combination of market access and technology Major step for Sika to become number 1 in admixture (jump from 15% to 17% global market share) Axim offers excellent grinding aid technology

31 31 Growth Drivers 1. Emerging Markets 2. Megatrend Sustainability 3. Innovation in Mature Markets

32 32 1) Emerging Markets Technology penetration Infrastructure build up 50% of concrete consumption worldwide in China, only 30% treated CHF 40 trillion until 2020 Transportation needs Requirements 70% of world bus production in emerging markets (2011: CHF 115 million) Skilled people

33 33 Infrastructure Build Up: Nanjing Metro Construction from 2000 to 2030 Project with 17 metro lines 30 km metro tunnel per year 500 precast elements per day

34 34 2) Megatrend Sustainability CO 2 emission Better energy management Megatrend water In production of concrete and cement Zero-emission-housing Weight reduction in cars with structural bonding Membrane-roofing brings 15% energy savings Sika is world leader in waterproofing

35 Weight Reduction With Structural Bonding 35

36 36 3) Innovation In Mature Markets Trend to top technology i-cure Technology Customer penetration Potential for refurbishment Cross selling (Roof to Floor, Greenstreak) Financial restrictions lead to more refurbishment activities

37 i-cure Technology 37 i-cure stands for new patented type of hardener polyurethane technology Solvent-free Low in emission Environmentally friendly Odorless

38 38 Forward-looking statements The statements in this presentation relating to matters that are not historical facts are forward-looking statements. They are no guarantee of future performance and involve risks and uncertainties with regard to future global economic conditions, foreign exchange rates, regulatory rules, market conditions, the actions of competitors and other factors beyond the control of Sika.