Geberit Ag · SIX:GEBN
Geberit — H1 2011 Earnings Presentation
23 slides from Geberit's earnings presentation, Aug 16, 2011
Slide 1: H1 2011 results
H1 2011 results 16. August 2011
Slide 2: Agenda
H1 2011 results Agenda Agenda • H1 2011 at a glance • Building industry outlook • Outlook 2011 • Conclusions 16. August 2011 2
Slide 3: H1 2011 at a glance
H1 2011 results H1 2011 at a glance Continued double digit sales growth in local currencies • Slightly positive sales growth of 0.3%, respectively 11.7% in local currencies • Significant negative currency effect of CHF 127 Mio. • Increasing raw material costs • EBIT-margin down 130 basis points to 2
Slide 4: All regions with strong positive sales growth
H1 2011 results H1 2011 at a glance All regions with strong positive sales growth Sales growth by region in % (curr. adj.) Total 11.7% Europe 11.8% America 12.3% Far East / Pacific 10.2% Middle East / Africa 5.2% 16. August 2011 4
Slide 5: High negative currency effects impacted sales development
H1 2011 results H1 2011 at a glance High negative currency effects impacted sales development H1 2010 H1 2011 CHF 1’115 Mio. CHF 1’119 Mio. +130 -127 +3 Variance in Currency Total local currency effect variance +11.7% -11.4% +0.3% 16. August 2011 5
Slide 6: Sharp appreciation of the Swiss Franc
H1 2011 results H1 2011 at a glance Sharp appreciation of the Swiss Franc CHF Mio. H1 2011 H1 2010 % YoY • Negative currency impact on sales and Sales 1'118.6 1'115.4 0.3% operating profit EBITDA 296.2 311.0 -4.8% Margin 26.5% 27.9% • Increasing raw material costs EBIT 254.9 268.9 -5.2% Margin 22.8%
Slide 7: EBIT margin analysis
H1 2011 results H1 2011 at a glance EBIT margin analysis +2.2% -1.7% 24.1% -0.5% -1.3% 22.8% EBIT margin Volume and Other costs and Sales Price EBIT margin H1 2010 product mix currency impact deductions effects, net H1 2011 effect (bonus, freight and sales commissions) • Positive volume effect • Org
Slide 8: Raw material price development
H1 2011 results H1 2011 at a glance Raw material price development 400 350 300 250 Stabilizing 200 at high level 150 100 50 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2005 2006 2007 2008 2009 2010 2011 Polystyrene Polyethylene Copper Aluminum Nickel Index: December
Slide 9: Raw material price development: H1 2011 vs. H1 2010
H1 2011 results H1 2011 at a glance Raw material price development: H1 2011 vs. H1 2010 +8% +13% +26% +7% 30% 25% 20% 15% 10% 5% 0% Polystyrene Polyethylene Copper Aluminum 16. August 2011 9
Slide 10: Agenda
H1 2011 results Agenda Agenda • H1 2011 at a glance • Building industry outlook • Outlook 2011 • Conclusions 16. August 2011 10
Slide 11: Europe
H1 2011 results Building industry outlook Europe • Recovery to differ across segments and markets • Residential-led recovery • Recovery in non-residential will be slow • Unlikely to be a sharp rebound 16. August 2011 11
Slide 12: European trends 2011 – Residential
H1 2011 results Building industry outlook European trends 2011 – Residential Trend Market • Austria, Finland, Germany, Norway, Poland, Russia, Switzerland, Sweden • Belgium, France, Italy, The Netherlands, UK, Denmark • Ireland, Portugal, Spain 16. August 2011 12
Slide 13: North America
H1 2011 results Building industry outlook North America • Market environment remains challenging • Residential - Key indicators of activity still declining - Building permits off by 80% from pre-recession levels - Housing starts around 3% lower than 2010 level - No sign of an upturn in sight • Comme
Slide 14: Asia
H1 2011 results Building industry outlook Asia • Growth expected to continue • China - Construction remains robust - Social housing gaining importance • SE Asia - General recovery in H1 - Construction sector expects 9% growth in 2011 • Australia - Residential expected to be below last year in 2011 1
Slide 15: Middle East / Africa
H1 2011 results Building industry outlook Middle East / Africa • Continued political uncertainty across region • Building sector confidence in South African market at 10 year low • Mixed growth prospects in the Gulf Region 16. August 2011 15
Slide 16: Agenda
H1 2011 results Agenda Agenda • H1 2011 at a glance • Building industry outlook • Outlook 2011 • Conclusions 16. August 2011 16
Slide 17: Outlook 2011
H1 2011 results Outlook 2011 Outlook 2011 • Sales expected to grow towards a high-single digit level in local currencies • The strength of the Swiss franc will continue to impact negatively our sales and operating results • EBITDA margin expected at the upper end of our medium-term target corridor o
Slide 18: Currency sensitivity
H1 2011 results Outlook 2011 Currency sensitivity • The sharp increase of the Swiss franc compared to the first half of 2010 impacted sales and operating profits negatively • These negative effects are mainly translation related • Geberit’s structure provides a good natural hedge • Impact of a 10% s
Slide 19: Agenda
H1 2011 results Agenda Agenda • H1 2011 at a glance • Building industry outlook • Outlook 2011 • Conclusions 16. August 2011 19
Slide 20: Maintaining positive outlook
H1 2011 results Conclusions Maintaining positive outlook • New construction growth returns to key European markets • Renovation sector growth in Europe • No sign of an upturn in the US housing and commercial markets • Continued growth in Asia • Mixed growth picture in the Middle East • Pressure from
Slide 21: Sustainable profitable growth
H1 2011 results Conclusions Sustainable profitable growth Sales Sales (CHF (CHF Mio.) Mio.) 2'487 2'455 2'184 2'181 2'147 1'923 1'119 2.2% CAGR in the period 2005 – 2010 2005 2006 2007 2008 2009 2010 H1 2011 EBITDA EBITDA (CHF (CHF Mio.) Mio.) % Margin 28.0% 26.7% 26.5% 26.1% 25.7% 26.4% 23.7% 638 6
Slide 22: Over proportional EPS growth
H1 2011 results Conclusions Over proportional EPS growth EPS 1) EPS adjusted adjusted1) (CHF) (CHF) 11.67 11.90 10.18 10.32 8.86 6.47 5.59 9.8% CAGR in the period 2005 – 2010 2005 2006 2007 2008 2009 2010 H1 2011 1) Adjusted for the amortization of goodwill 16. August 2011 22
Slide 23: Disclaimer
H1 2011 results 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