H1 2018 Results Christian Buhl, CEO Roland Iff, CFO August 14, 2018
Agenda H1 2018 at a glance Building industry outlook 2018 Outlook 2018 SLIDE 2
Successful first half of 2018 with strong earnings growth Sales growth (reported) Sales growth (in local currencies) EBITDA margin +11.0% +4.3% 29.8% (+20 bp vs. PY adj.) Adj. net income growth +13.1% Adj. earning per share growth +13.9% One-off cost related to Sanitec acquisition of CHF 15 million on net income level SLIDE 3
Sales H1 2018 Strong sales growth achieved in H1 2018 In CHF million Total variance: + CHF 161 million (+11.0%) 1 630 98 1 469 63 Sales H1 2017 Growth in local currency Currency effect Sales H1 2018 +4.3% +6.7% SLIDE 4
Sales H1 2018 Positive sales growth in all regions Currency adjusted sales growth H1 2018 by region, in % Europe America +3.6% +3.7% Middle East / Africa +9.5% Far East / Pacific +20.5% Total +4.3% SLIDE 5
H1 2018 Sales growth in almost all markets Share of sales Germany 31% Nordic Region 10% Central- / Eastern Europe 10% Switzerland 9% Sales, CHF million 505 163 162 146 Sales growth, % c.a. Total 4.3% 3.8% -1.5% 5.2% 10.7% Europe Benelux 8% Italy 7% 135 122 5.2% 6.8% France 6% 102 0.8% Austria 5% 85 2.7% UK / Ireland 3% 53-8.4% Iberian Peninsula 1% 13 9.5% International America 3% Far East / Pacific 3% Middle East / Africa 3% 50 48 46 3.6% 20.5% 9.5% SLIDE 6
H1 2018 Sales per product area Share of sales Variance to prior year Sales, CHF million % CHF % c.a. Installation & Flushing Systems 38% 613 12.3% 5.1% Piping Systems 29% 477 12.2% 5.2% Bathroom Systems 33% 540 8.4% 2.6% SLIDE 7
Key figures H1 2018 Very good results with strong earnings growth CHF million H1 2018 H1 2017 % YoY Sales 1 630 1 469 11.0% Adj. EBITDA 485 435 11.6% Margin 29.8% 29.6% EBITDA 485 387 25.3% Adj. EBIT 423 380 11.5% Margin 26.0% 25.8% EBIT 405 315 28.7% Adj. net income 362 320 13.1% Margin 22.2% 21.8% Net income 347 258 34.4% Adj. EPS (CHF) 9.90 8.69 13.9% EPS (CHF) 9.49 7.01 35.4% Free cashflow 191 160 19.0% Margin 11.7% 10.9% Further improved profitability; adj. EBITDA margin increased by 20bp Higher raw material prices and tariffs compensated by Price increases Volume growth Benefit from site closures in France Continuous efficiency improvements No one-off cost related to Sanitec acquisition on EBITDA level as of 2018 One-off cost related to Sanitec acquisition of CHF 15 million on net income level SLIDE 8
Key figures Q2 2018 Very good results with strong earnings growth CHF million Q2 2018 Q2 2017 % YoY Sales 807 732 10.3% Adj. EBITDA 240 216 11.0% Margin 29.7% 29.5% EBITDA 240 171 40.5% Adj. EBIT 208 189 10.3% Margin 25.8% 25.8% EBIT 199 134 48.3% Adj. net income 179 158 13.4% Margin 22.1% 21.5% Net income 171 105 63.5% Adj. EPS (CHF) 4.89 4.28 14.3% EPS (CHF) 4.69 2.84 65.1% Free cashflow 232 189 22.8% Margin 28.7% 25.8% Further improved profitability; adj. EBITDA margin increased by 20bp Higher raw material prices and tariffs compensated by Price increases Volume growth Benefit from site closures in France Continuous efficiency improvements No one-off cost related to Sanitec acquisition on EBITDA level as of 2018 One-off cost related to Sanitec acquisition of CHF 8 million on net income level SLIDE 9
EBITDA margin H1 2018 Further improved profitability Adjustments / one-off Reported EBITDA margin 29.6% +0.7% 0.0% -0.4% -0.1% 29.8% 26.4% Adj. EBITDA margin H1 2017 Volume and product mix effect Price effects, net Other cost effects Currency effect EBITDA margin H1 2018 Positive impact from volume effect Net price effect: Higher raw-material prices fully compensated by price increases Negative other cost effects mainly due to tariff increases Very small currency effect No one-off adjustments on EBITDA level as of 2018 SLIDE 10
Agenda H1 2018 at a glance Building industry outlook 2018 Outlook 2018 SLIDE 11
Building industry outlook 2018 Europe Overall favourable but mixed construction market environment North America Moderate improvement of institutional sector Middle East / Africa Improving construction market in Gulf region Asien Pacific Mixed picture across the region SLIDE 12
Building industry outlook 2018 Europe Overall favorable but mixed construction market environment Confident about demand in Germany limited qualified installation capacity most likely remains a bottleneck Stable market on high level in Switzerland Growing market in Austria but at slower pace Mixed and overall stagnating outlook for Nordic Region positive for Denmark and Finland, stagnation in Sweden and Norway Positive environment in Benelux ongoing recovery in NL leads to shortages of qualified sanitary installers Positive outlook for France, although weakened indicators for residential Improving environment in Italy Robust residential sector but declining non-residential sector in UK Mixed picture in Eastern Europe Recovery on Iberian Peninsula from low level SLIDE 13
Agenda H1 2018 at a glance Building industry outlook 2018 Outlook 2018 SLIDE 14
Outlook Geberit 2018 Full year sales growth in local currencies of around 4% Full year EBITDA-margin on previous year s level SLIDE 15
Disclaimer While Geberit is making great efforts to include accurate and up-to-date information, we make no representations or warranties, expressed or implied, as to the accuracy or completeness of the information provided in this handout and disclaim any liability for the use of it. The statements in this presentation relating to matters that are not historical facts are forward-looking statements that are not guarantees of future performance and involve risks and uncertainties, including but not limited to: future global economic conditions, foreign exchange rates, regulatory rules, market conditions, the actions of competitors and other factors beyond the control of the company. All financial information included is unaudited and is prepared under the same recognition and measurement principles applied for the audited annual financial statements for the year ended December 31, 2017. SLIDE 16