Geberit Ag · SIX:GEBN
Geberit — Investor Presentation (January 2003)
34 slides from Geberit's investor presentation, January 2003
Slide 1: Investor Presentation January 2003
Investor Presentation January 2003
Slide 2: Contents
Investor Presentation January 2003 Contents ! Summary ! Fundamentals ! Current Business ! Strategy Investor Presentation January 2003 Chart 2
Slide 3: Summary
Investor Presentation January 2003 Summary Investor Presentation January 2003 Chart 3
Slide 4: Summary (1)
Investor Presentation January 2003 Summary (1) ! Fundamentals ! Managing water flows - innovative sanitary systems solutions ! Sustained long-term growth pattern ! Ongoing internationalisation ! Comprehensive product portfolio ! High profitability and cashflow generation ! Excellent market position
Slide 5: Summary (2)
Investor Presentation January 2003 Summary (2) ! Strategy ! Credo: Excellence in Sanitary Technology. Worldwide. ! Approach: Integrated sanitary systems solutions ! Strategy: based on three pillars: intensify market development, invest in innovation, optimise business processes ! Recent bolt on acqu
Slide 6: Fundamentals
Investor Presentation January 2003 Fundamentals Investor Presentation January 2003 Chart 6
Slide 7: Innovative Sanitary Systems Solutions
Fundamentals Innovative Sanitary Systems Solutions Managing water flows Geberit - the backbone of the modern bathroom Investor Presentation January 2003 Chart 7
Slide 8: Sustained long-term Growth Pattern
Fundamentals Sustained long-term Growth Pattern CHF in millions ! Stable sales growth with modest 1200 cyclical impacts 1000 ! Key success elements Geberit Sales - Innovative products 1960 - 2002 - System approach 800 - Brand recognition - Focus on RMI 600 - Penetration of Core Markets - Geographica
Slide 9: Ongoing Diversification of Sales Base
Fundamentals Ongoing Diversification of Sales Base 32.4 % 2002 35.5 % 2001 50.8 % 16.8 % 50.3 % 1995 53.0 % 11.5 % n Germany n Other Core markets 1) n Rest of World 45.8 % 3.9 % 1) IT, CH, UK, AT, FR, NL, BE Investor Presentation January 2003 Chart 9
Slide 10: Comprehensive Product Portfolio
Fundamentals Comprehensive Product Portfolio Installation Building S Systems Drainage MCHF 481 Systems A (38%) MCHF 236 P N (19%) I I P T 2002 Sales: 1’273 MCHF I A N MCHF 458 G R MCHF 815 36% Y 64% S S Flushing Water Supply Y Systems Systems S Y MCHF 130 MCHF 137 T S (11%) (10%) T E E M M S S Under
Slide 11: Strong Financial Position
Fundamentals Strong Financial Position ! Resilience in a difficult market environment in 2001 ! Operating profits on a premium level ! High profitability ! Substantial Free Cashflows ! Solid financial base - improved capitalisation ! Growth in sales and profits 2002 Investor Presentation January 200
Slide 12: Excellent Market Position
Fundamentals Excellent Market Position ! Leading industry player ! Superior innovation power and cost leadership ! Unique marketing platform and strong brand loyalty ! Well positioned for sector consolidation ! Significant barriers to entry Investor Presentation January 2003 Chart 12
Slide 13: Current Business
Investor Presentation January 2003 Current Business Investor Presentation January 2003 Chart 13
Slide 14: 2002: Solid Sales Growth
Current Business 2002: Solid Sales Growth In Mio CHF CHF ∆ CHF ∆ Local Currencies Group organic 1'204.8 + 3.4 % + 6.4 % Group Total 1'273.0 + 9.3 % + 12.2 % Investor Presentation January 2003 Chart 14
Slide 15: 2002: Robust 4th Quarter
Current Business 2002: Robust 4th Quarter Organic CHF ∆ CHF ∆ Local in millions Currencies September 2002 acc. 945.4 + 2.8 % + 6.4 % 4th quarter 259.4 + 5.7 % + 6.5 % December 2002 acc. 1'204.8 + 3.4 % + 6.4 % Total CHF ∆ CHF ∆ Local in millions Currencies September 2002 acc. 986.6 + 7.3 % + 10.8 %
Slide 16: 2002: Sales by Markets
Current Business 2002: Sales by Markets CHF in millions Sales Breakdown % YoY % YoY % YoY curr. adj. curr. adj. / org. Germany 413.0 32.4% 0.0% 2.9% 2.7% Italy 194.6 15.3% 1.9% 4.9% 4.8% Switzerland 150.9 11.9% -0.1% -0.1% -0.1% Austria 75.9 6.0% 27.6% 30.3% 6.9% United Kingdom 70.0 5.5% 1.6% 5.7% 5
Slide 17: 2002: Quarterly Development by Markets - Total
Current Business 2002: Quarterly Development by Markets - Total in local currencies/total Q1 Q2 H1 Q3 Q4 H2 FY Germany -0.2% 0.7% 0.2% 7.5% 4.7% 6.3% 2.9% Italy 8.4% 5.9% 7.2% 4.6% -0.5% 2.1% 4.9% Switzerland -2.6% 5.0% 1.3% 1.3% -4.7% -1.5% -0.1% Austria 17.5% 35.4% 26.2% 42.3% 22.7% 34.4% 30.3% Un
Slide 18: 2002: Quarterly Development by Markets - Organic
Current Business 2002: Quarterly Development by Markets - Organic in local currencies/organic Q1 Q2 H1 Q3 Q4 H2 FY Germany -0.5% 0.1% -0.2% 7.5% 4.6% 6.3% 2.7% Italy 8.2% 5.7% 7.0% 4.3% -0.5% 2.0% 4.8% Switzerland -2.8% 5.0% 1.1% 1.3% -4.7% -1.5% -0.1% Austria 0.6% 11.6% 6.0% 10.9% 3.4% 7.8% 6.9% Un
Slide 19: 2002: Sales by Product Lines
Current Business 2002: Sales by Product Lines Mio. CHF Sales Breakdown % YoY % YoY % YoY curr. Adj. curr. adj./org. Installation Systems 481.3 37.8% 10.8% 14.0% 10.2% Flushing Systems 137.3 10.8% 2.5% 5.7% 5.7% Public 90.6 7.1% 151.0% 154.3% 9.4% Waste Fittings and Traps 83.0 6.5% -5.7% -2.7% -2.4%
Slide 20: Low Volatility in quarterly Sales
Current Business Low Volatility in quarterly Sales in % of total sales 2002* 2001 2000 1999 1998 1997 1996 ! Q4 sales usually below average Q1 27.1 27.8 27.8 25.1 25.9 25.3 25.9 ! Positive momentum in H2 1999 Q2 25.4 25.9 25.8 25.8 26.3 27.0 25.0 ! Negative trend in 2000 and 2001, H1 52.5 53.7 53.6
Slide 21: Key figures 9M 2002 - Excellent Results
Current Business Key figures 9M 2002 - Excellent Results CHF in millions 9M 2002 9M 2001 % YoY Sales 986.6 919.7 +7.3% EBITDA 250.7 226.5 +10.7% Margin 25.4% 24.6% EBIT 171.3 149.9 +14.3% Margin 17.4% 16.3% Net Income 108.8 91.6 +18.8% Margin 11.0% 10.0% Net Cashflow 199.3 172.5 +15.5% Margin 20.2%
Slide 22: 9M 2002: Increase in Operating Margins
Current Business 9M 2002: Increase in Operating Margins CHF in millions 9M 2002 % 9M 2001 % % YoY Sales 986.6 100.0% 919.7 100.0% 7.3% Sales deductions 128.1 13.0% 117.4 12.8% 9.1% Net sales 858.5 87.0% 802.3 87.2% 7.0% Cost of materials 279.2 28.3% 259.4 28.2% 7.6% Personnel expenses 239.8 24.3% 22
Slide 23: 9M 2002: Strong improvement of Net Income
Current Business 9M 2002: Strong improvement of Net Income CHF in millions 9M 2002 % 9M 2001 % % YoY Operating profit (EBIT) 171.3 17.4% 149.9 16.3% 14.3% Financial income and (expenses) -17.8 -1.8% -24.8 -2.7% -28.2% Extraordinary income, net 0.1 0.2 Profit before tax and minority interest 153.6 15
Slide 24: 9M 2002: Increasing Cashflow Generation
Current Business 9M 2002: Increasing Cashflow Generation CHF in millions 9M 2002 9M 2001 %YoY EBITDA 250.7 226.5 +10.7% +/- Financial income (expenses) -17.8 -24.8 +/- Income tax expenses -43.2 -33.2 +/- Other expenses (income) -1.5 +0.2 +/- Changes in long-term provisions +9.3 +3.4 +/- Changes in l
Slide 25: 9M 2002: Balance Sheet providing Stability and Flexibility
Current Business 9M 2002: Balance Sheet providing Stability and Flexibility CHF in millions 30.09.02 31.12.01 30.09.01 Cash and cash equivalents 119.6 101.5 89.1 Net working capital 144.6 1) 86.4 141.9 Property, plant and equipment 495.1 2) 492.3 478.5 Financial assets 129.6 111.8 110.5 3) Goodwill
Slide 26: Outlook
Current Business Outlook ! Based on substantial sales growth promising results in FY 2002 with operating margin above previous year and double digit growth of net income ! Despite difficult markets moderate sales growth in 2003 as a result of new products and intensified marketing efforts ! Ongoing
Slide 27: Strategy
Investor Presentation January 2003 Strategy Investor Presentation January 2003 Chart 27
Slide 28: The Geberit Credo
Strategy The Geberit Credo Excellence in Sanitary Technology. Worldwide. Geberit sets trends in sanitary technology. Our activities are based on a global approach. Geberit systems are recognised worldwide. Investor Presentation January 2003 Chart 28
Slide 29: Geberit is managing Water Flows
Strategy Geberit is managing Water Flows Integrated Sanitary System Solutions ! Water supply, flushing, delivery of water, building drainage and installation technology - integrated into a system Easy and of compatible and complementary speedy products and services Installation ! The system approach
Slide 30: The Strategy to increase Enterprise Value
Strategy The Strategy to increase Enterprise Value Intensify Market Invest in Optimise Business Development Innovation Processes ! Realise full potential ! Keep innovation ! Perpetuate process of core markets rate above 30% improvement ! Increase penetration of ! Commit to strong ! Enhance customer
Slide 31: Intensify Market Development - Acquisition Opportunities
Strategy Intensify Market Development - Acquisition Opportunities CHF in millions ! Worldwide search - focused approach: - sanitary technology - Europe, USA Sales outside core markets ! Acquisition of Austrian 10-Y-CAGR: 23 % installation system producer Huter in 01/2002 ! Strategic move by acquisit
Slide 32: Ambitious mid-term Goals
Strategy Ambitious mid-term Goals ! Sales CAGR 8 - 10 %, including add on acquisitions ! Share of sales outside core markets: 25 % (2002 = ca. 17 %) ! Operating margins on a premium level ! Above-average EPS growth p.a. Investor Presentation January 2003 Chart 32
Slide 33: Strong Long term Value Drivers
Strategy Strong Long term Value Drivers ! Sustainable strategy for top line growth ! Consistent delivery of high level results ! Substantial free cashflows ! High innovation rate of 30 % ! Management committed to medium term goals Investor Presentation January 2003 Chart 33
Slide 34: Innovative Sanitary Systems Solutions
Innovative Sanitary Systems Solutions