Geberit Ag · SIX:GEBN
Geberit — Investor Presentation (March 2004)
43 slides from Geberit's investor presentation, March 2004
Slide 1: Investor Presentation
Investor Presentation March 2004
Slide 2: Contents
Investor Presentation March 2004 Contents ! Geberit in Fiscal 2003 ! Financial Statements 2003 ! Acquisition of Mapress ! Outlook, Strategy, Goals Investor Presentation March 2004 (FY 2003) Chart 2
Slide 3: Geberit in Fiscal 2003
Investor Presentation March 2004 Geberit in Fiscal 2003 Investor Presentation March 2004 (FY 2003) Chart 3
Slide 4: Best Year in Company History
Geberit in Fiscal 2003 Best Year in Company History 1400 CHF in millions 1200 ! Sales CHF 1.4 bn ! Positive momentum in H2 Geberit Sales 1000 1960 - 2003 ! Increased operating margins 800 ! EBITDA CHF 330 m (Margin: 23.5%) 20Y CAGR: 8.6 % 600 10Y CAGR: 5.2 % ! Net income CHF 147 m 5Y CAGR: 6.3 % 400
Slide 5: Reasons for the Success
Geberit in Fiscal 2003 Reasons for the Success Share price development 2003 ! Continuing high acceptance of Geberit 700 700 systems solutions and products 650 8000 600 600 ! High innovation rate of 34 % 550 ! Distinct growth in a number of markets 500 500 Geberit 6000 ! Growth contribution of CFC an
Slide 6: Encouraging Sales Growth – predominantly organic
Geberit in Fiscal 2003 Encouraging Sales Growth – predominantly organic CHF in millions CHF % YoY % YoY CHF Curr. adj. Organic 1'351.4 + 6.2 % + 4.8 % Total 1'403.9 + 10.3 % + 9.0 % Investor Presentation March 2004 (FY 2003) Chart 6
Slide 7: Positive Momentum in H2
Geberit in Fiscal 2003 Positive Momentum in H2 % YoY H1 H2 2002 CHF +1.8% +10.5% +6.2% Organic Curr. adj. +2.1% +7.6% +4.8% CHF +9.6% +11.0% +10.3% Total +9.0% Curr. adj. +9.8% +8.1% Investor Presentation March 2004 (FY 2003) Chart 7
Slide 8: Further Diversification of Sales Base
Geberit in Fiscal 2003 Further Diversification of Sales Base Sales 2003: MCHF 1'403.9 Other Major European Markets 49.4% Germany 30.8% Italy 14.8% Switzerland 11.5% Austria 5.9% UK 4.9% Netherlands 4.6% France 4.2% Belgium 3.5% 50.3 % 1995 RoW 19.8% Rest of Western Europe 3.8% Eastern Europe 5.3% Am
Slide 9: Prevailing positive Market Trends
Geberit in Fiscal 2003 Prevailing positive Market Trends ! Signs of consumer sentiment recovery in Western European Markets ! Ongoing growth in Central / Sales outside core markets Eastern Europe 10-Y-CAGR: 23 % ! Upswing in US residential market but commercial and institutional market in decline !
Slide 10: Consistent Delivery of high Level EBITDA-Margins
Geberit in Fiscal 2003 Consistent Delivery of high Level EBITDA-Margins EBITDA-Margin ! Operating profits on a premium 25 % level (10 Y average: 23.2%) 20 % ! EBITDA growth during last decade 5.4 %, above sales 15 % growth of 5.2 % 10 % ! Substantial free cashflow generation 5% ! Increasing distribu
Slide 11: Value creating Activities 2003
Geberit in Fiscal 2003 Value creating Activities 2003 ! New management structure successfully implemented ! Strengthened marketing focus in Europe ! Innovation process streamlined ! Production strategy reviewed and refined ! Global sourcing activities intensified ! Acquisition of Mapress / Blücher c
Slide 12: Financial Statements 2003
Investor Presentation March 2004 Financial Statements 2003 Investor Presentation March 2004 (FY 2003) Chart 12
Slide 13: Key Figures 2003
Financial Statements 2003 Key Figures 2003 CHF in millions 2003 2002 % YoY Sales 1'403.9 1'273.0 +10.3% EBITDA 329.9 295.7 +11.6% Margin 23.5% 23.2% EBIT 206.5 186.3 +10.8% Margin 14.7% 14.6% Net Income 147.0 118.1 +24.5% Margin 10.5% 9.3% Net Cashflow 271.3 247.1 +9.8% Margin 19.3% 19.4% EPS (CHF)
Slide 14: Main Sales Regions at a Glance
Financial Statements 2003 Main Sales Regions at a Glance CHF in millions Sales % YoY % YoY % YoY CHF Curr. adj. Curr. adj./org. Major Europ. Markets 1) 1'125.7 +6.3% +3.8% +3.8% Other Markets 278.2 +30.0% +34.8% +10.1% Group 1'403.9 +10.3% +9.0% +4.8% 1) DE, IT, CH, AT, GB, NL, FR, BE Investor Prese
Slide 15: Growth in nearly all Markets
Financial Statements 2003 Growth in nearly all Markets CHF in millions Sales Breakdown % YoY % YoY % YoY CHF Curr. adj. Curr. adj./org. Germany 431.9 30.8% 4.6% 0.9% 0.9% Italy 207.8 14.8% 6.8% 3.1% 3.1% Switzerland 161.0 11.5% 6.7% 6.7% 6.7% Austria 82.4 5.9% 8.6% 4.9% 4.9% United Kingdom 69.2 4.9%
Slide 16: Product Areas at a Glance
Financial Statements 2003 Product Areas at a Glance CHF in millions Sales % YoY % YoY % YoY Curr. adj. Curr. adj. / org. Sanitary Systems 919.6 +12.9% +11.5% +5.0% Piping Systems 484.3 +5.7% +4.5% +4.5% Total 1'403.9 +10.3% +9.0% +4.8% Investor Presentation March 2004 (FY 2003) Chart 16
Slide 17: Sales Increase in both Product Areas
Financial Statements 2003 Sales Increase in both Product Areas CHF in millions Sales Breakdown % YoY % YoY % YoY CHF Curr. adj. Curr. adj. / org. Installation Systems 520.8 37.1% 8.2% 5.5% 5.5% Flushing Systems 187.5 13.4% 17.4% 15.7% 10.5% Public 128.1 9.1% 41.4% 45.8% -3.4% Waste Fittings and Trap
Slide 18: Substantial Increase in Operating Profits
Financial Statements 2003 Substantial Increase in Operating Profits CHF in millions 2003 % 2002 % % YoY Sales 1'403.9 100.0% 1'273.0 100.0% +10.3% Sales deductions 194.3 13.8% 167.3 13.1% 16.1% Net sales 1'209.6 86.2% 1'105.7 86.9% 9.4% Cost of materials 396.8 28.3% 362.9 28.5% 9.3% Personnel expens
Slide 19: Double digit Growth of Net Income
Financial Statements 2003 Double digit Growth of Net Income CHF in millions 2003 % 2002 % % YoY Operating Profit (EBIT) 206.5 14.7% 186.3 14.6% 10.8% Financial income and (expense) -23.4 -1.7% -23.0 -1.8% 1.7% Extraordinary income and expenses, net -0.1 0.1 Profit before tax and minority interest 18
Slide 20: Strong Cashflow Generation
Financial Statements 2003 Strong Cashflow Generation CHF in millions 2003 2002 %YoY EBITDA 329.9 295.7 +11.6% +/- Financial income and (expenses) -23.4 -23.0 +/- Income tax expenses -34.1 -43.7 +/- Other income and (expenses) -2.0 -1.5 +/- Changes in long-term provisions -5.8 +13.9 +/- Changes in lo
Slide 21: Stable and solid Balance Sheet
Financial Statements 2003 Stable and solid Balance Sheet CHF in millions 31.12.03 31.12.02 Cash and cash equivalents 181.3 137.5 Net working capital 77.6 85.0 Property, plant and equipment 490.9 492.0 Financial assets 126.6 123.5 Goodwill and intangible assets 469.7 510.3 Total assets 1'507.8 1'500.
Slide 22: Mid-term Company Performance
Financial Statements 2003 Mid-term Company Performance CHF in millions 2003 2002 2001 2000 1999 1998 CAGR Sales 1'404 1'273 1'165 1'208 1'191 1'032 +6.3% Operating profit (EBIT) 207 186 157 190 176 140 +8.1% Net income 147 118 92 104 54 37 +31.8% Net cashflow 271 247 207 208 186 152 +12.3% EPS (in C
Slide 23: Acquisition of Mapress
Investor Presentation March 2004 Acquisition of Mapress Investor Presentation March 2004 (FY 2003) Chart 23
Slide 24: Facts and Figures
Acquisition of Mapress Facts and Figures ! Pioneer in metal press fitting systems and drainage solutions ! Strong brand, expertise in stainless steel ! Mapress Group Sales 2003 EUR 232 m (CHF 353 m) ! Premium EBITDA margin similar to Geberit (23.4%) ! 920 employees in production plants Langenfeld, V
Slide 25: Mapress Group Sales Split 2003
Acquisition of Mapress Mapress Group Sales Split 2003 Products Markets Mapress Germany Scandinavia Fittings 48.2% 20.2% Pipes 53% 26% 3% Other 18% Switzerland 8.1% Drainage RoW Italy 5.1% 4.0% UK 5.3% Blücher France 2.9% Benelux 3.4% Total 2003: CHF 353 Mio. Austria 2.8% EUR Exchange rate: 1.5202 In
Slide 26: Large European Piping Systems Market
Acquisition of Mapress Large European Piping Systems Market Plumbing and Heating (EUR 5.8 bn) ! Estimated size of the European 2% 39% supply piping systems market in 23% 2003 is EUR 5.8 bn ! Significant shares of total market: 3% 3% copper (39%), PE-X (23%) and 10% 4% 16% multilayer (16%) followed b
Slide 27: Specific Advantages and Applications of Press Fitting Systems
Acquisition of Mapress Specific Advantages and Applications of Press Fitting Systems Multilayer Stainless C-Steel Copper Steel Main ! Hot and cold water ! Hot and cold water ! Radiator supply ! Hot and cold water Applications supply (branch water supply (mains and risers) ! Air supply supply lines)
Slide 28: European Drainage and Floor Drains Market
Acquisition of Mapress European Drainage and Floor Drains Market European Drainage Market 1) (EUR 1.4 bn) ! European market volume for building PP 21% drainage approx. EUR 1.4 bn PVC 43% ! Competition of different materials Steel ! Geberit market share approx. 9.6% 19% Other PE ! European market for
Slide 29: Broad Product Range of Drainage Systems
Acquisition of Mapress Broad Product Range of Drainage Systems PE Pluvia Europipe Floor Drains Channels Main ! Building drainage ! Roof drainage ! Building drainage ! Drainage of ! Drainage of ! Drainage systems in ! Drainage systems in bathrooms, kitchens, commercial Applications laboratories and l
Slide 30: The new Geberit Group - MCHF 1'757
Acquisition of Mapress The new Geberit Group - MCHF 1'757 1) Increased International Presence Strengthened Piping System Division Other Major European Markets: 45.0% PL 12 PL 13 PL 14 Germany 11% 7% 5% PL 21 34.3% 52% 18% PL 11 48% 29% PL 22 PL 23 RoW: 20.7% 25% 5% Scandinavia: 5.2% Sanitary Systems
Slide 31: Mapress meets Geberit strategic Acquisition Criteria
Acquisition of Mapress Mapress meets Geberit strategic Acquisition Criteria ! Strengthening our position in high value piping system market ! Low risk acquisition – Geberit best possible owner ! Complementary products ! High quality products with wide range of application ! Products with global reac
Slide 32: Value enhancing from the Beginning (Proforma 2003)
Acquisition of Mapress Value enhancing from the Beginning (Proforma 2003) Geberit Mapress Acquis. Geberit Var. CHF in millions bef. acq. Effects aft. acq. % Sales 1'403.9 352.8 1'756.7 +25.1% EBITDA 329.9 82.7 412.6 +25.1% in % 23.5% 23.4% 23.5% Amortisation 39.6 22.7 14.3 76.6 EBIT 206.5 49.2 -14.3
Slide 33: Strong Balance Sheet maintained (Proforma)
Acquisition of Mapress Strong Balance Sheet maintained (Proforma December 31, 2003) CHF in millions Geberit Mapress Acquisition Geberit bef. acq. Effects after acq. Cash and cash equivalents 181.3 7.0 -85.9 102.4 Net working capital 77.6 45.3 122.9 Property, plant and equipment 490.9 64.6 555.5 Fina
Slide 34: Principles of Integration
Acquisition of Mapress Principles of Integration A strong combination ! Mapress and Blücher companies as integral parts of the Geberit Group ! Production plants in Langenfeld (Germany), Vildbjerg and Vojens Blücher (Denmark) parts of the Piping Systems Division ! Integration of Marketing & Sales ste
Slide 35: Outlook, Strategy, Goals
Investor Presentation March 2004 Outlook, Strategy, Goals Investor Presentation March 2004 (FY 2003) Chart 35
Slide 36: Outlook 2004
Outlook, Strategy, Goals Outlook 2004 ! Current business Encouraging, good Q1 expected ! Markets Improved, but geopolitically unstable ! Sales growth 2004 Solid organic growth, plus external growth of 25% ! Operating margins On current high level ! Net income Further improvement ! Financial position
Slide 37: The Geberit Credo
Outlook, Strategy, Goals 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 March 2004 (FY 2003) Chart 37
Slide 38: Integrated Sanitary Systems Solutions
Outlook, Strategy, Goals Integrated Sanitary Systems Solutions Roof Drainage ! A system of compatible and complementary products and Installation services Systems Flushing ! Improved building Systems procedures, noise insulation, water conservation, waste water hydraulics Water ! Room for strategic
Slide 39: The Strategy to increase Enterprise Value
Outlook, Strategy, Goals The Strategy to increase Enterprise Value Intensify Market Invest in Optimise Business Development Innovation Processes ! Realise full potential of core ! Innovation rate ! Integrate Mapress and Blücher markets above 30 % into Geberit processes ! Penetrate existing markets i
Slide 40: Unchanged mid-term Goals
Outlook, Strategy, Goals Unchanged mid-term Goals ! Sales CAGR 6 – 8%, including add on acquisitions ! Share of sales outside major European markets: 25 % (2003 = 19,8 %) ! Operating margins on a premium level ! Overproportional EPS growth p.a. Investor Presentation March 2004 (FY 2003) Chart 40
Slide 41: Summary: what are our main Success Factors?
Outlook, Strategy, Goals Summary: what are our main Success Factors? ! Focus on core business ! Significant internal growth ! Clear marketing concept ! Strategy of “Profitable growth” ! Successfully completed acquisitions ! Superior innovation power ! Strong brand loyalty ! Motivating company spirit
Slide 42: Disclaimer
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
Slide 43: Innovative Sanitary Systems Solutions
Innovative Sanitary Systems Solutions