Sulzer Ag · SIX:SUN

Sulzer — H1 2012 Earnings Presentation

24 slides from Sulzer's earnings presentation, Jul 20, 2012

  1. Slide 1: Midyear Results Presentation 2012

    Midyear Results 2012 Midyear Results Presentation 2012 Strong increase in orders and record high sales July 20, 2012 THE SAFE HARBOR STATEMENT UNDER THE US PRIVATE SECURITIES LITIGATION REFORM ACT 1995 This presentation may contain forward-looking statements, including but not limited to, projection

  2. Slide 2: Content; The first six months of 2012 under review

    Midyear Results 2012 Content Overview Strategy update Divisional review Financial review Outlook and summary | Midyear Results 2012 | | 120720 | slide 3 The first six months of 2012 under review „ Substantial increase of order intake „ Record high sales „ Healthy double-digit profitability „ Success

  3. Slide 3: Key figures; Order intake and sales

    Midyear Results 2012 Key figures 2011 millions of CHF H1-2012 H1-2011 Full Year Order intake 2 025.4 1 824.4 3 566.1 „ Strong increase in orders driven by acquisitions Sales 1 922.7 1 600.6 3 577.9 „ Significant growth in sales, EBIT Sulzer 193.4 177.1 364.1 both organic and nominal „ Increased EBIT

  4. Slide 4: Order intake and sales by division

    Midyear Results 2012 Order intake millions of CHF H1-2012 H1-2011 U U Adj.1) Divisions 2 020.8 1 821.0 +11.0% +0.9% Sulzer Pumps 1 022.3 838.5 +21.9% +0.3% Sulzer Metco 360.5 347.1 +3.9% +5.9% Sulzer Chemtech 361.0 375.5 –3.9% –6.4% Sulzer Turbo Services 277.0 259.9 +6.6% +6.4% Other 4.6 3.4 — — Tot

  5. Slide 5: Orders and sales by region; Markets

    Midyear Results 2012 Orders and sales – by region H1-2012 – Orders by region H1-2012 – Sales by region 4% 3% 25% Europe 27% 39% 37% North America Central and South America Asia, Middle East, Australia 7% Africa 8% 25% 25% „ Strongest growth in Asia-Pacific and „ Strongest growth in Asia-Pacific and

  6. Slide 6: Operating income and return on sales

    Midyear Results 2012 Operating income and return on sales Operating income – EBIT Return on sales % millions of CHF millions of CHF EBIT adj1: 385 ROS adj1: ROS adj1: 10.8% 10.6% 364 11.1% 10.2% -100bps 10.1% y-o-y EBIT adj1: 204 Nominal 193 177 growth: +9% 2011 H1-11 H1-12 2011 H1-11 H1-12 Higher o

  7. Slide 7: Shaping Sulzer for the future; Vision and values

    Midyear Results 2012 Shaping Sulzer for the future What do we want to be? Vision What framework do we set ourselves Values in which to make decisions? How do we achieve Strategic priorities our goals? We aim for sustainable value creation and profitable growth | Midyear Results 2012 | | 120720 | sli

  8. Slide 8: Strategic priorities

    Midyear Results 2012 Strategic priorities Technology leadership Outstanding services Customer Continuous operational orientation improvements Cross-divisional cooperation All strategic priorities oriented toward our customers with a focus on value creation and profitable growth | Midyear Results 201

  9. Slide 9: Strategic priorities

    Midyear Results 2012 Strategic priorities Continuous operational Cross-divisional cooperation improvements „ Improve operational processes „ One strong brand based on LEAN-principles „ Leverage on shared services „ Strenghten project management „ Cooperate better on procurement „ Further improve hea

  10. Slide 10: Sulzer Pumps – Review H1 2012

    Midyear Results 2012 Sulzer Pumps – Review H1 2012 Key figures H1 H1 +/- % +/- % 2011 1 (Mio. CHF) 2012 2011 adj. Order intake 1 022.3 838.5 21.9% 0.3% 1 705.6 Sales 981.0 743.2 32.0% 8.9% 1 747.8 EBIT 84.0 85.4 -1.6% 168.2 ROS % 8.6% 11.5% 9.6% Employees 8 466 6 184 36.9% 8 211 ROS adjusted 1 9.1%

  11. Slide 11: Sulzer Pumps – Strategic direction; Sulzer Metco Review

    Midyear Results 2012 Sulzer Pumps – Strategic direction Midterm targets 2012-2015 Enhance position in water market Target corridor Targeted acquisitions Sales 6-8% growth New innovative products and solutions EBIT margin 11-13% Further expansion of (ROS) service business Return Continued drive for o

  12. Slide 12: Sulzer Metco – Markets

    Midyear Results 2012 Sulzer Metco – Markets Transportation Power General industry 49% 11% 37% Automotive: „ Healthy levels of activity „ Generally healthy levels of „ Still at high activity level with industrial gas turbines activity „ Global demand for passenger „ Alternative energy offering „ Euro

  13. Slide 13: Sulzer Chemtech – Review H1 2012

    Midyear Results 2012 Sulzer Chemtech – Review H1 2012 Key figures H1 H1 +/- % +/- % 2011 (Mio. CHF) 2012 2011 adj.1 Order intake 361.0 375.5 -3.9% -6.4% 701.7 Sales 362.6 302.9 19.7% 17.0% 667.0 EBIT 36.6 30.7 19.2% 63.1 ROS % 10.1% 10.1% 9.5% Employees 3 649 3 513 3.9% 3 634 ROS adjusted 10.6% ex i

  14. Slide 14: Sulzer Chemtech – Strategic direction; Turbo Services Review

    Midyear Results 2012 Sulzer Chemtech – Strategic direction Midterm targets 2012-2015 Target New innovative products corridor and solutions Sales 6-8% Optimize global footprint growth EBIT Grow polymer market margin 12-14% (ROS) Strengthen service business Return on capital >20% (ROCE) Focusing our o

  15. Slide 15: Sulzer Turbo Services – Markets and strategic direction

    Midyear Results 2012 Sulzer Turbo Services – Markets Oil and gas Power General industry 27% 28% 39% „ Upstream at a steady pace „ Long-term trends and low „ Mixed picture mirroring gas prices supporting gas some uncertainty in global „ Refining business still at turbine business economy low level „

  16. Slide 16: Financial review of the first six months of 2012

    Midyear Results 2012 Content Overview Strategy update Divisional review Financial review Outlook and summary | Midyear Results 2012 | | 120720 | slide 31 Financial review of the first six months of 2012 „ Strong growth in sales „ Double-digit profitability „ Increased net income „ Strongly improved

  17. Slide 17: Sales; Gross margin

    Midyear Results 2012 Sales Sales millions of CHF 3 714 + Acquisition contribution 3 577 CHF 199 million 3 350 3 184 Growth y-o-y: Currency translation effects +20% nominal – CHF 24 million +9% adjusted1 New business outgrew 1 923 ! service business 1 601 2008 2009 2010 2011 H1-11 H1-12 Strong sales

  18. Slide 18: Operating income (EBIT); Return on sales

    Midyear Results 2012 Operating income (EBIT) millions of CHF H1-2012 H1-2012 H1-2012 H1-2011 U% EBITDA DA EBIT Divisions 242.5 –62.4 180.1 173.2 +4.0% Sulzer Pumps 110.0 –26.0 84.0 85.4 –1.7% Sulzer Metco 45.8 –11.2 34.6 34.5 +0.3% Sulzer Chemtech 53.7 –17.1 36.6 30.7 +19.2% Sulzer Turbo Services 33

  19. Slide 19: EBIT – Other; From operating income to net income

    Midyear Results 2012 EBIT – Other Operating gain H1-2012: CHF 13.3 million (H1-2011: CHF 3.9 million) Real Estate „ Portfolio of operationally nonessential real estate sold (operationally nonessential) „ No further contributions in 2012 and going forward Sulzer Innotec „ Merged with the divisions to

  20. Slide 20: Cash flow statement; Net liquidity

    Midyear Results 2012 Cash flow statement (IFRS) millions of CHF H1-2012 H1-2011 U% Cash flow from operating activities 170.9 –25.5 — Purchase of intangibles/PP&E –55.7 –42.6 –30.8% Sale of intangibles/PP&E 1.1 1.0 +10.0% Free cash flow 116.3 –67.1 — Acquisitions/divestitures –16.3 –0.8 — Dividends –

  21. Slide 21: Balance sheet

    Midyear Results 2012 Balance sheet Balance sheet (millions of CHF) Equity Liabilities Equity in % of total assets Gearing in % (debt/equity) 5000 60% Ratios: 4500 „ Equity ratio at 47% 4000 50% „ Gearing at 34% 3500 40% 3000 Capital allocation: 2500 30% 2000 „ Business needs 20% 1500 „ Dividends 100

  22. Slide 22: End market assessment – short-term; midrange targets

    Midyear Results 2012 End market assessment – short-term Assessment Share of sales Market conditions for full year 2012 in H1-2012 in 2011 vs. prior year1 Stable Oil and gas ~39% Growth (at current high levels) Further Stable Power ~14% stabilization with (at low level) growth potential Reduced activ

  23. Slide 23: Strategic priorities; Conclusion

    Midyear Results 2012 Strategic priorities Technology leadership Outstanding services Customer Continuous operational orientation improvements Cross-divisional cooperation All strategic priorities oriented toward our customers with a focus on value creation and profitable growth | Midyear Results 201

  24. Slide 24: Contacts and event calendar

    Midyear Results 2012 Visit us online: www.sulzer.com Our newly launched Sulzer website: | Midyear Results 2012 | | 120720 | slide 47 Contacts and event calendar Investor Relations: Company address: Philippe Dewitz Phone +41 52 262 20 22 Sulzer Ltd Fax +41 52 262 00 25 Zürcherstrasse 14 investor.rela

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