Sika Ag · SIX:SIKA
Sika — H1 2015 Earnings Presentation
26 slides from Sika's earnings presentation, July 2015
Slide 1: Continuing Operating Speed, Successful Strategy Execution – First Half Year 2015
CONTINUING OPERATING SPEED, SUCCESSFUL STRATEGY EXECUTION – FIRST HALF YEAR 2015 SIKA INVESTOR PRESENTATION JULY 2015
Slide 2: High Operating Speed in First Half of 2015
HIGH OPERATING SPEED IN FIRST HALF OF 2015 Sales growth of 5.6% despite strong first half year 2014 (+18.1%) (Real CHF growth of -1.2% due to significant appreciation of CHF) Above-average margin improvement: EBIT +8.3%, net profit +11.1% Growth in all regions: Double-digit in the USA, Latin A
Slide 3: Key Figures Half-Year 2015
KEY FIGURES HALF-YEAR 2015 ABOVE-AVERAGE INCREASE IN PROFIT in CHF mn 2014 2015 Δ% Net sales 2,656.9 2,625.2 -1.2% Gross results as % of net sales 53.3 54.4 +0.7% EBITDA 347.7 370.2 +6.5% EBIT 266.4 288.6 +8.3% Net profit 177.6 197.3 +11.1% Operating free cash flow 36.6 43.0 ROCE in % 20.9 22.8 3
Slide 4: Sales Growth by Quarter
SALES GROWTH BY QUARTER CONTINUED GROWTH MOMENTUM 23.3% Net sales 12 month rolling 9.2% 14.0% 11.7% at constant FX acquisition 7.4% 5.4% organic 6.0% 5.3% 5.1% 1.4% 1.1% 2.6% 14.1% 6.6% 6.3% 3.9% 4.0% 3.4% in CHF mn Q1 PY Q2 PY Q3 PY Q4 PY Q1 CY Q2 CY Quarterly 1,206.2 1,450.7 1,517.5 1,396.9 1,195.
Slide 5: Sales Half-Year 2015 – Growth in All Regions
SALES HALF-YEAR 2015 GROWTH IN ALL REGIONS + 3.8 % + 8.2 % + 1.7 % + 13.1 % Growth (at constant FX) - 10.8 % + 5.4 % - 1.9 % - 10.4 % FX impact + 2.3 % + 0.7 % + 1.8 % + 3.1 % Acquisition 21% 79% Construction Industry 1,242 381 484 304 EMEA North Asia/Pacific Latin America America 5
Slide 6: Growth Momentum Continues Half-Year 2015
GROWTH MOMENTUM CONTINUES HALF-YEAR 2015 5.6% SALES GROWTH (-1.2% IN CHF) + 3.8% + 8.2% 335 381 + 1.7% North America 485 484 + 13.1% 1,336 1,242 Asia/Pacific 296 304 EMEA Latin America HY 1 / 2014 HY 1 / 2015 (in CHF million, growth at constant exchange rates) 6
Slide 7: Five-Year Overview – Half-Year Figures
FIVE-YEAR OVERVIEW – HALF-YEAR FIGURES CONTINUOUSLY IMPROVING MARGINS 350 12. 0% 250 8.0 % EBIT IN CHF 11.0% NET PROFIT IN CHF 7.5% 325 11. 0% 10.0% 225 6.7% 7.0 % 300 10. 0% 9.2% +8.3% In % of sales In % of sales 5.9% +11.1% 275 289 9.0 % 200 6.0 % 8.6% 5.4% 197 8.0% 266 5.1% 250 8.0 % 175 5.0 % 17
Slide 8: Investments and New Subsidiaries in 2015
CONTINUING HIGH OPERATING SPEED INVESTMENTS AND NEW SUBSIDIARIES IN 2015 Opening of Sika plants: 2nd plant in United Arab Emirates (Dubai, March 2015) 1st plant on Reunion Island (March 2015) 1st plant in Sri Lanka (Ekala, March 2015) 1st plant in Paraguay (Asunción, May 2015) New subsidiary
Slide 9: Acquisitions H1/2015
CONTINUING HIGH OPERATING SPEED ACQUISITIONS H1/2015 Company Country Target Market Duro-Moza Mozambique Refurbishment BMI USA Refurbishment, Flooring Axson Technologies Global Industry CTA Australia Refurbishment Addiment Italia Europe Concrete Total annual sales: CHF 115 million Axson Technologies
Slide 10: Execution of Strategy 2018 – Innovation and Growth in Emerging Markets
EXECUTION OF STRATEGY 2018 – INNOVATION AND GROWTH IN EMERGING MARKETS AS KEY DRIVERS
Slide 11: Strategy 2018: Sika's Growth Model Is Delivering
STRATEGY 2018: SIKA’S GROWTH MODEL IS DELIVERING MARKET PENETRATION 6-8% GROWTH PER YEAR INNOVATION 42% - 45% OF SALES IN EMERGING MARKETS EMERGING MARKETS > 10% OPERATING PROFIT > 6% OPERATING FREE CASH FLOW ACQUISITIONS > 20% RETURN ON CAPITAL EMPLOYED VALUES 11 |
Slide 12: Sika Is Active in Attractive Markets
SIKA IS ACTIVE IN ATTRACTIVE MARKETS WITH CORE COMPETENCIES IN BONDING, SEALING, DAMPING, REINFORCING AND PROTECTING Concrete Waterproofing Roofing Flooring Sealing & Bonding Refurbishment Industry 12
Slide 13: Mortar Is Sika's Fastest Growing Technology
MORTAR IS SIKA’S FASTEST GROWING TECHNOLOGY CORE ELEMENT OF STRATEGY 2018 • 31% sales growth in 2014 • 20% of Sika`s group profit • 11 new factories in past 2 years • 7 acquisitions in past 2 years ►79 factories in 50 countries ►Sales target for 2015 is CHF 1 bn 13
Slide 14: Innovation as a Key Driver – Refurbishment
INNOVATION AS A KEY DRIVER – REFURBISHMENT NEW LEVEL OF SUSTAINABILITY IN TILE ADHESIVES SIKA’S NEW HIGH PERFORMANCE SikaCeram® TILE ADHESIVE COMBINES COST OFFERS A CONSIDERABLY LOWER EFFECTIVENESS WITH CONSUMPTION RATE ECO-EFFICIENCY SikaCeram®-290 StarLight FOR 80% HIGHER COVERAGE WITH SUSTAINABLE
Slide 15: Innovation as a Key Driver – Concrete
INNOVATION AS A KEY DRIVER – CONCRETE INCREASED WORKABILITY TIME A NEW SUBSTANCE THAT PERMITS THE TIME-DEPENDENT CONTROL OF CONCRETE CONSISTENCY > 8 HOURS WORKABILITY Sika® ViscoFlow® ADMIXTURE FOR CONTROLLABLE CONCRETE WORKABILITY TIMES MEETING THE CHALLENGES OF CONSTRUCTION IN URBAN ENVIRONMENTS A
Slide 16: Innovation as a Key Driver – Automotive
INNOVATION AS A KEY DRIVER – AUTOMOTIVE THE NEXT GENERATION IN VEHICLE BONDING LIGHTWEIGHT CONSTRUCTION AND MULTI-MATERIAL DESIGN ARE THE MEGATRENDS IN THE AUTOMOTIVE INDUSTRY SikaPower®ADHESIVES COMBINE HIGH STRENGTH AND ELASTICITY IDEAL FOR CONTEMPORARY AUTOMOTIVE MANUFACTURING ADHESIVE BONDING IS
Slide 17: Growth in Emerging Markets
GROWTH IN EMERGING MARKETS STRONG GROWTH DRIVER DURING THE PAST YEARS Average sales growth of 16.3% during the last 3 years 8.7% growth in H1/2015 in spite of a weak Chinese market 24 new plants during the last 3 years 16 new companies since 2012 Accelerated growth in Africa – strategic fo
Slide 18: Saint-Gobain's Hostile Takeover Attempt
SAINT-GOBAIN’S HOSTILE TAKEOVER ATTEMPT
Slide 19: Fundamental Reasons to Oppose Hostile Takeover Attempt by Saint-Gobain
FUNDAMENTAL REASONS TO OPPOSE HOSTILE TAKEOVER ATTEMPT BY SAINT-GOBAIN 1. Lack of industrial logic 2. Saint-Gobain will execute control with only 16% of the capital 3. No adequate representation of public shareholders on the Board 4. Saint-Gobain is a direct competitor of Sika 5. Sika loses A- credi
Slide 20: Sika Articles of Association, Article 4: Restriction of Transferability
SIKA ARTICLES OF ASSOCIATION, ARTICLE 4 RESTRICTION OF TRANSFERABILITY, THE 5% TRESHOLD “The Board of Directors reserves the right to refuse an acquirer of registered shares as shareholder, if the number of registered shares held by him exceeds 5% of the total number of registered shares entered in
Slide 21: Superior Court Zug Decision
SUPERIOR COURT ZUG DECISION 4.4.3 "If the requested interim measures were granted, due to the premature change of control [Sika] would face the integration into the group of Saint-Gobain, as soon as the required merger control approval for the transaction has been obtained. Sika would in all likelih
Slide 22: Superior Court Zug Decision
SUPERIOR COURT ZUG DECISION 5 "[…] Whether [Sika], based on these new facts, is allowed to limit [SWH]’s voting rights, remains unanswered for the time being and had remained unanswered by the decision of the lower court already. However, it cannot be said that Sika had no grounds whatsoever to oppo
Slide 23: Outlook
OUTLOOK ® BUILDING TRUST By
Slide 24: Outlook – Business Development in the Current Year
OUTLOOK BUSINESS DEVELOPMENT IN THE CURRENT YEAR Sales growth expectations of 6-8% at constant exchange rates Continued build-up of growth markets with 7-9 new factories and 5-7 acquisitions Double-digit sales growth expected in the USA, Latin America, Africa, the Middle East, Eastern Europe,
Slide 25: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains certain forward-looking statements. These forward-looking statements may be identified by words such as ‘expects’, ‘believes’, ‘estimates’, ‘anticipates’, ‘projects’, ‘intends’, ‘should’, ‘seeks’, ‘future’ or similar expressions or by discussion
Slide 26: Thank You for Your Attention
THANK YOU FOR YOUR ATTENTION ® BUILDING TRUST By