On Track to Meet Strategic Growth Targets

Transcription

1 The Shard, London On Track to Meet Strategic Growth Targets 2011 Financial Results March 1, 2012

2 2 Itinerary Welcome (Dr. Walter Grüebler) 2011 Financial Statements (Ronald Trächsel) Trends, Strategy, Outlook (Jan Jenisch) Questions and Answers

3 One New Change, London Welcome Dr. Walter Grüebler, Chairman of the Board

4 Strong Sales Growth in Emerging Markets. Emerging markets contribute 36% to Group sales. 4 (in CHF mn) Eastern Europe Africa/Middle East/IMEA Asia (without Japan, Australia, New Zealand, Korea) Latin America 101 Emerging markets total

5 Result Robust Growth, But 5 (in CHF mn) % Net sales 4' ' Gross result 2' ' EBITDA EBIT Net profit Equity ratio in % ROCE in %

6 6 Proposals to the Annual General Meeting Dividend bearer share CHF Dividend registered share CHF 7.50 Thereof: Payment out of capital contribution reserves (tax free for individuals in CH) CHF (bearer share) CHF 3.50 (registered share) Election: New: Re-election: Frits van Dijk, former executive Nestlé Dr. Paul Hälg, Prof. Dr. Ulrich Suter, Daniel Sauter

7 2011 Financial Statements Ronald Trächsel, CFO Precaste elements, Nanjing

8 Sales and EBIT Development Sales (in CHF mn) Organic growth (in %) 13.3% 5.9% -6.2% 6.1% 11.6% 511 EBIT (in CHF mn) EBIT margin (in %) 11.2% 9.1% 9.6% 9.9% 7.6%

9 Sales Growth 2011 Strong organic growth of 11.6%. 9 (in CHF mn) % Net sales Organic growth Acquisition effect Currency effect Acquisitions in 2011: Hebei, Sika Gulf/Bahrain, Biro, Technokolla, Colauto, Copsa, Duochem, Axim

10 Double Digit Sales Growth in Almost All Regions. Sales growth by Regions: 10 growth +11% +4% +21% +28% +21% +13% organic +11% +2% +16% +14% +21% +10% Net Sales 2011 in CHF mn at Actual FX IT Technokolla ES Copsa CA Duochem US MayNational US Greenstreak CN Hebei JP Dyflex Sika Gulf Europe North Europe South North America Asia/Pacific Latin America IMEA

11 Construction Sales Represent 81% of Group Sales. Sales by Division Growth in Local Currencies Industry 12.1% CHF mn Construction 16.3% Full Year 2011

12 Material cost increase flattened in 2 nd half year. Sales Price increases showed positive impacts in Q % 51.7% 55.2% 54.0% 50.6% 54.0% Gross margin development 53.4% +2% +1% +2% 50.5% 49.9% +3% Raw material cost development 48.9% (periodic) 2010 FY av. Q1/2011 Q2/2011 Q3/2011 Q4/2011

13 Non Material cost good cost control / slight efficiency gains. 13 (in CHF mn) Actual Actual Variance Variance absolute % Net Sales % Total non Material Cost* % whereof: Personnel Expenses Comparable % Other OPEX Comparable % Number of personnel: whereof acquisitions 2011**: * excl. Depreciation/Amortization/Impairment ** 2011: Hebei, BIRO, Sika Gulf, Technokolla, Colauto, Copsa, Duochem, Axim

14 EBIT strongly impacted by material price and currency development. 14 (in CHF mn) Actual Actual 2010 % NS 2011 % NS Growth Net Sales % % 3.2% Gross result % % -340 bpts. Non-Material cost % % -110 bpts. EBIT % % -230 bpts. EBIT variance absolute whereof translation impact FX impact on "Central Cost"

15 EBIT absolute and relative 2011 by Regions: 15 (in CHF mn) 18.6% 9.2% 10.4% 8.3% 12.3% 9.5% Europe North Europe South North America Asia/Pacific Latin America IMEA

16 Net Profit 16 (in CHF mn) Actual Actual 2010 % NS 2011 % NS Growth EBIT % % -230 bpts. Financial expense Income taxes Net profit % % -230 bpts. Tax rate 23.0% 31.9% Tax rate adapted by extraordinary impact 28.5%

17 Consolidated Balance Sheet (in CHF mn) 17 Actual Actual var. vs. PY Cash and cash equivalents Other current assets Current assets Non-current assets Total assets Current liabilities Non-current liabilities Equity incl. minorities Total liabilities and equity

18 Net Working Capital development impacted by currency development and acquisitions. 18 at Actual FX Rates in CHF mn 2009 YE 2010 YE 2011 YE Actual Actual Actual Net Sales 4' ' '556.4 = Total NWC year end in % NS 20.1% 18.2% 19.9% at constant FX Rates (Budget 2011) 20.4% 19.7% 19.8% acquisition sales annualized 20.3% 19.3% 19.2%

19 Cash Flow Statement (in CHF mn) 19 Actual Actual Cash Flow from Operating Activities CapEx/Sale of Assets/Acquisitions Free Cash Flow Acquisitions / Divestment Operating Free Cash Flow

20 Financial Targets 20 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%

21 Proposed Appropriation of Retained Earnings (in CHF mn) Group Profit (after minorities) Dividend out of retained earnings: out of capital contribution reserves: 52.7 Dividend total Dividend Ratio 36.3% 52.6% Nominal value reduction 21.4 Total Payout Total Payout Ratio 43.2% 52.6% Dividend payment CHF per bearer share out of retained earnings CHF 4.00 per registered share Dividend payment CHF per bearer share out of capital contribution reserves CHF 3.50 per registered share

22 Attractive levels of payout ratio. Net Profit / Total Payout (CHF mn): % 42% 50% 43% 53% Net profit in CHF mn Payout ratio in % Total payout in CHF mn

23 Outlook 2010 / 2011 Sutong bridge, Yangtze Trends, Strategy, Outlook Jan Jenisch, CEO

24 24 Sika is Strong Positioned for the Future 1. Attractive, growing, fragmented industry 2. Growth Strategy works in all target markets 3. Dynamic growth platform in emerging markets 4. Continous innovations 5. Growth leverage through acquisitions 6. Solid balance sheet guarantees freedom of action

25 Attractive, Growing, Fragmented Industry. Market Potential by Target Market. 25 > CHF 50 billion (total market potential)

26 Attractive, Growing, Fragmented Industry. Market Potential by Target Market. 26 Target Market Global No. 1 Sika's Position Concrete BASF 2 Waterproofing Sika 1 Roofing Soprema 3 Flooring Sika 1 Refurbishment BASF 2 Industry Henkel 2

27 Dynamic Growth Platform in Emerging Markets / Over proportional return in Asia Pacific and Latin America. 27 Organic growth Mature Markets + 9% Emerging Markets +17% 40% of EBIT Regions 18.6% 9.2% 10.4% 8.3% 12.3% 9.5% Europe North Europe South North America Asia/Pacific Latin America IMEA

28 Ongoing Investments in Emerging Markets. For Example Brazil, New Plant in Osasco, North-East. 28 New production plant 2011 Miniplant, 2010 Colauto, acquisition 2011 Headquarters Sika Brazil, since 1934

29 Ongoing Investments in Emerging Markets. For Example Vietnam, New Plant in Hanoi. 29 New production plant 2011 Branch, logistic center Headquarters Sika Vietnam, since 1993

30 30 Continuous Innovations CO 2 emission Better energy management In production of concrete and cement Zero-emission-housing Weight reduction in cars with structural bonding Membrane-roofing brings 15% energy savings Megatrend water Sika is world leader in waterproofing Use of sustainable chemicals

31 Continous Innovations. For Example i-cure Technology 31 i-cure stands for new patented type of hardener polyurethane technology Solvent-free Low in emission Environmentally friendly Odorless

32 Growth Leverage Through Acquisitions 32 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

33 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

34 34 Acquisition of Hebei (sales of 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)

35 35 Acquisition of Colauto (sales of 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

36 36 Acquisition of Axim (sales of 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

37 37 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

38 38 Outlook 2012 Construction Markets in Europe South (Spain, Portugal, Italy, Greece) and Near/Middle East remain difficult Markets in Central and Northern Europe and North America expected to be more stable Emerging markets in Asia, Eastern Europe and Latin America with growth momentum Raw material prices expected volatile and on high level Ongoing opportunities for innovation, market penetration and consolidation

39 39 Focus Control and monitor cost as market environment remains highly volatile 2. Improve margins 3. Continue growth strategy through - innovation - build up of emerging markets 4. Realize growth opportunities through acquisitions

40 40 Wind turbine, North Sea Questions and Answers

41 41 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.