Sika Ag · SIX:SIKA
Sika — FY2012 Earnings Presentation
18 slides from Sika's earnings presentation, March 2013
Slide 1: Financial Results 2012
March 2013 FINANCIAL RESULTS 2012 CONTINUED REVENUE GROWTH, ABOVE‐AVERAGE INCREASE IN PROFIT AND FURTHER INVESTMENTS IN EMERGING MARKETS SIKA ROADSHOW PRESENTATION / BAAR MARCH 2013 SHORT LIST • World market leader in construction chemicals • Highly focused industrial portfolio • Successful growth s
Slide 2: Sika's Global Footprint
March 2013 SIKA’S GLOBAL FOOTPRINT • Sales CHF 4.83 bn • Over 120 plants • EBITDA CHF 568.9 mn • 15’200 employees • Presence in 5 continents and 80 countries 3| March 2013 Roadshow | Sika AG ORGANIZED FOR THE FUTURE MORE EFFICIENT STRUCTURES • More efficient management structures Reduction of Group
Slide 3: Organized for the Future: New Structure of Group Management
March 2013 ORGANIZED FOR THE FUTURE NEW STRUCTURE OF GROUP MANAGEMENT • Group Management from 14 to 9 members, retaining the traditional flat management structures 5| March 2013 Roadshow | Sika AG ORGANIZED FOR THE FUTURE FROM 6 TO 4 REGIONS • EMEA, Asia/Pacific, North America, Latin America • Newly
Slide 4: New Target Market Organization
March 2013 ORGANIZED FOR THE FUTURE NEW TARGET MARKET ORGANIZATION • Push and Pull in one hand • Focused research and development • Optimize technical market service Concrete Waterproofing Roofing Flooring Sealing & Bonding Refurbishment Industry 7| March 2013 Roadshow | Sika AG RESULTS 2012 4
Slide 5: Highlights 2012
March 2013 HIGHLIGHTS 2012 • Sales growth of 5.8% to CHF 4 829 million • 10.7% sales growth in emerging markets • Rise in net profit by 31% to CHF 281 million • High level of operating free cash flow at CHF 303 million (previous year: CHF 186 million) • Successful integration of 8 acquisitions 2011,
Slide 6: Sales Growth by Regions
March 2013 SALES GROWTH BY REGIONS GOOD GROWTH IN THE EMERGING MARKETS growth ‐4% + 1% + 9% + 7% +17% +8% (in LC) organic ‐4% ‐ 7% + 3% + 5% +17% +3% Technokolla 20% Copsa Yean‐Il Axim Axim Duochem 80% Construction Industry Sika Gulf 37% 63% 1'251 799 706 875 586 279 MM EM Europe Europe North Asia L
Slide 7: Cost Development
March 2013 COST DEVELOPMENT (in CHF mn) Variance Variance 2011 2012 absolute % Net sales 4 563.7 4 828.9 265.2 5.8% Total non material cost* 1 827.2 1 950.4 123.2 6.7% Adjusted by: Acquisitions, One‐offs, Restructuring Net Sales organic 4 563.7 4 672.0 108.3 2.4% Total non Material Cost* 1 846.0 1 8
Slide 8: Overview of P&L
March 2013 OVERVIEW OF P&L INCREASE IN NET PROFIT BY 31% (in CHF mn) 2011 % NS 2012 % NS Growth Net Sales 4 563.7 100.0% 4 828.9 100.0% 5.8% Gross result 2 304.6 50.5% 2 519.3 52.2% 9.3% Non-material cost -1 827.2 -40.0% -1 950.4 -40.4% 6.7% EBITDA 477.4 10.5% 568.9 11.8% 19.2% Depreciation / Amorti
Slide 9: Net Working Capital
March 2013 NET WORKING CAPITAL STRONG IMPROVEMENT OVER THE YEARS 2010 YE 2011 YE 2012 YE at actual FX rates in CHF mn Net sales 4'421.8 4'563.7 4'828.9 = Total NWC year end 802.1 904.9 901.0 in % NS 18.1% 19.8% 18.7% at constant FX rates (Budget 12) 20.1% 19.7% 19.0% 22.0 20.9 20.1 19.7 19.0 2008 20
Slide 10: Proposed Appropriation of Retained Earnings
March 2013 PROPOSED APPROPRIATION OF RETAINED EARNINGS BOARD PROPOSES 13% HIGHER DIVIDEND Dividend payment CHF 51.00 per bearer share CHF 8.50 per registered share (in CHF mn) 2011 2012 Group profit (after minorities) 213.3 279.5 Dividend out of retained earnings: 60.4 128.8 out of capital contribut
Slide 11: Strategy and Outlook
March 2013 STRATEGY AND OUTLOOK SUMMARY OF STRATEGY SIKA’S GROWTH MODEL WILL DELIVER IN 2013 1. Market penetration ‐ from roof to floor (cross‐selling) ‐ from new‐build to refurbishment (life‐cycle) ‐ push and pull market channels (branding) 2. Global technology leadership ‐ innovations in technolog
Slide 12: High Growth Opportunities
March 2013 HIGH GROWTH OPPORTUNITIES MARKET PENETRATION BY TARGET MARKET 23 | March 2013 Roadshow | Sika AG MARKET PENETRATION SUBSTANTIAL GROWTH POTENTIAL • From roof to floor (cross‐selling) • From new‐build to refurbishment (life‐cycle) • Push and pull market channels (branding) 24 | March 2013 R
Slide 13: Global Technology Leadership
March 2013 GLOBAL TECHNOLOGY LEADERSHIP CONTINUOUS DEVELOPMENT OF NEW PRODUCTS Fast curing Sikalastic® waterproofing system for bridge decks 25 | March 2013 Roadshow | Sika AG GLOBAL TECHNOLOGY LEADERSHIP CONTINUOUS DEVELOPMENT OF NEW PRODUCTS SikaPower® bonding of crash resisting car structures Aud
Slide 14: Global Technology Leadership
March 2013 GLOBAL TECHNOLOGY LEADERSHIP CONTINUOUS DEVELOPMENT OF NEW PRODUCTS New products based on i‐Cure technology, odorless, solvent‐free Sikaflex® 222i UV • High weathering resistance • Suitable for organic glass • Good workability • Stress‐crack free windows 27 | March 2013 Roadshow | Sika AG
Slide 15: From Mature to Emerging Markets
March 2013 FROM MATURE TO EMERGING MARKETS … WITH ABOVE AVERAGE PROFITABILITY >40% of Group EBIT (in CHF mn) 18.4% 13.4% 10.5% 10.0% 9.9% 8.5% 131 68 70 117 108 28 Europe Europe North Asia/Pacific Latin IMEA North South America America 29 | March 2013 Roadshow | Sika AG FROM MATURE TO EMERGING MARKE
Slide 16: From Mature to Emerging Markets
March 2013 FROM MATURE TO EMERGING MARKETS POTENTIAL IN NEW INFRASTRUCTURE PROJECTS High‐speed train network in China: • 2007: 0 km; 2010: 8’358 km; 2020: 50’000 km 31 | March 2013 Roadshow | Sika AG BUILD‐UP OF EMERGING MARKETS For example: • 3rd factory Brazil Vietnam, Hanoi • 2nd factory Chile •
Slide 17: Leading Role in Market Consolidation
March 2013 LEADING ROLE IN MARKET CONSOLIDATION SUCCESSFULLY COMPLETED 3 ACQUISITIONS Company Country Region Target Market Yean‐Il South Korea Asia/Pacific Waterproofing Ruetgers Germany EMEA Flooring Inatec Paraguay Latin America Concrete Successful integration of 8 acquisitions of 2011 33 | March
Slide 18: Confirmation of Medium-Term Targets 2013
March 2013 CONFIRMATION OF MEDIUM‐TERM TARGETS 2013 • Sales growth 4% ‐ 6% • EBITDA 12% ‐ 14% • Net profit >6% • OpFCF 4% ‐ 6% • ROCE 20% ‐ 25% 35 | March 2013 Roadshow | Sika AG FORWARD‐LOOKING STATEMENTS The statements in this presentation relating to matters that are not historical facts are forw