Geberit Ag · SIX:GEBN
Geberit — H1 2006 Earnings Presentation
26 slides from Geberit's earnings presentation, Aug 10, 2006
Slide 1: Interim Results 2006
Interim Results 2006 10 August 2006
Slide 2: Agenda
Interim Results 2006 Agenda Highlights Sales development Financial review Outlook Interim Results 2006 2
Slide 3: Highlights: Strong operational and financial performance
Highlights Strong operational and financial performance Highest sales and operating profit for Geberit ever Double-digit sales growth in Swiss Francs and in local currency Operational profit growing more than twice as sales EPS grows faster than sales Record sales and profitability targets
Slide 4: Strong H1 sales growth
Highlights Strong H1 sales growth H1 2005 H1 2006 CHF 974 Mio. CHF 1‘086 Mio. In CHF Mio. + 14.2% + 11.5% +122 +13 +112 974 -23 c a b d Organic Divestment Currency Total In local + 12.9% + 10.2% currency Interim Results 2006 4
Slide 5: Raw materials reaching record levels
Highlights Raw materials reaching record levels 310 280 250 220 190 160 130 100 70 01.04 Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 Polyethylene Aluminium Nickel PVC Copper Interim Results 2006 5
Slide 6: Continued strong profit growth
Highlights Continued strong profit growth CHF Mio. H1 2006 H1 2005 % YoY Sales advanced by 11.5% to Sales 1'085.5 973.5 11.5% CHF 1’085.5 Mio. EBITDA 302.6 237.5 27.4% Margin 27.9% 24.4% EBITDA increases by 27.4% EBIT 260.6 195.9 33.0% Margin 24.0% 20.1% Net Income 187.3 142.4 31.5% Gearing si
Slide 7: Agenda
Interim Results 2006 Agenda Highlights Sales development Financial review Outlook Interim Results 2006 7
Slide 8: Strong growth in Q1 and Q2
Sales development Strong growth in Q1 and Q2 Organic Total Quarters CHF Mio. %YoY CHF %YoY curr.adj. CHF Mio. %YoY CHF %YoY curr.adj. Q1 548.9 16.7% 15.2% 548.9 14.0% 12.5% Q2 536.6 11.8% 10.5% 536.6 9.1% 7.8% H1 1'085.5 14.2% 12.9% 1'085.5 11.5% 10.2% Double-digit growth in both quarters (curr.ad
Slide 9: All regions on target
Sales development All regions on target Sales Variance to prior year Region CHF Mio. % CHF % curr.adj./org. Total 1'085.5 11.5% 12.9% Europe 993.7 11.2% 13.2% America 58.5 6.8% 1.5% Far East / Pacific 14.4 27.4% 20.4% Middle East / Africa 18.9 38.0% 33.6% Healthy sales growth in Europe Growth in
Slide 10: Organic sales growth H1 2006
Sales development Organic sales growth H1 2006 QoQ YoY YoY comparison QoQ regional regional sales comparison Q1 Q1growth sales // Q2 Q2 2006 growth rate rate sales 2006 (curr.adj./org.) sales growth growth rate rate (curr. (curr.adj./org.) (curr. adj./org.) adj./org.) Q1 2006 Q2 2006 H1 2006 33.9% 3
Slide 11: Outgrowing the market
Sales development Outgrowing the market Sales Variance to prior year Market CHF Mio. % CHF % curr.adj./org Total Europe 993.7 11.2% 13.2% Germany 359.1 13.6% 12.6% Italy 150.1 6.9% 15.0% Switzerland 124.5 13.5% 13.6% Benelux1 95.9 17.7% 16.6% Austria 59.6 12.0% 12.4% Central- / Eastern Europe1 62.5
Slide 12: Update North American operations
Sales development Update North American operations Sales on track, despite CHF 3.0 Mio. basis effect of eliminated products Improved business performance - Upgrading management team - Reducing overhead - Improving operating efficiency - Simplifying product portfolio - 12% price increase in June
Slide 13: Accelerated growth for Installation Systems
Sales development Accelerated growth for Installation Systems Sales Variance to prior year Product lines CHF Mio. CHF curr.adj./org. TOTAL 1'085.5 11.5% 12.9% Sanitary Systems 628.1 15.1% 13.5% Installation Systems 388.8 20.1% 18.7% Flushing Systems 114.0 6.3% 5.3% Public 72.2 9.1% 4.8% Waste Fittin
Slide 14: Agenda
Interim Results 2006 Agenda Highlights Sales development Financial review Outlook Interim Results 2006 14
Slide 15: Strong sales drive bottom line growth
Financial review Strong sales drive bottom line growth CHF Mio. H1 2006 % H1 2005 % % YoY Sales 1'085.5 100.0% 973.5 100.0% 11.5% Sales deductions 160.1 14.7% 138.4 14.2% 15.7% Net sales 925.4 85.3% 835.1 85.8% 10.8% Cost of materials 303.8 28.0% 295.3 30.3% 2.9% Personnel expenses 220.2 20.3% 210.9
Slide 16: EBIT Margin analysis
Financial review EBIT Margin analysis EBIT margin growth ahead of EBIT Margin H1 2005 20.1% its past evolution Exit underground piping +0.7% EBIT Margin H1 2005 (adjusted) 20.8% Positive volume and price Volume-/ product mix effects +2.5% effect Other cost effects +0.2% Sales deductions (bonuses
Slide 17: EPS grow significantly faster than sales
Financial review EPS grow significantly faster than sales CHF Mio. H1 2006 % H1 2005 % %YoY Operating profit (EBIT) 260.6 24.0% 195.9 20.1% 33.0% Finance costs, net 9.2 0.8% 8.6 0.9% 7.0% Profit before income tax expenses 251.4 23.2% 187.3 19.2% 34.2% Income tax expenses 64.1 5.9% 47.9 4.9% 33.8% Ef
Slide 18: Improved financial performance – Free Cashflow up 114%
Financial review Improved financial performance – Free Cashflow up 114% CHF Mio. H1 2006 H1 2005 %YoY EBITDA 302.6 237.5 27.4% Finance costs, net -9.2 -8.6 Income tax expenses -64.1 -47.9 Changes in deferred taxes -0.4 0.5 Changes in long-term provisions 12.2 6.9 Changes in other long-term assets an
Slide 19: A solid equity base
Financial review A solid equity base CHF Mio. H1 2006 FY 2005 H1 2005 Cash and cash equivalents 145.0 180.0 171.6 Net working capital 248.4 120.8 238.5 Property, plant and equipment 510.8 528.3 521.9 Deferred tax assets 63.0 62.4 54.5 Financial assets and other non-current assets 33.0 33.2 24.3 Good
Slide 20: Sustainable high margins
Financial review Sustainable high margins Sales Sales (CHF (CHF Mio.) Mio.) 9.7% CAGR during the period 1'907 1'923 2000 – 2005 1'404 1'209 1'165 1'273 1'086 Average annual organic sales growth target between 4 to 6% 2000 2001 2002 2003 2004 2005 H1 2006 EBITDA EBITDA (CHF (CHF Mio.) Mio.) % Mar
Slide 21: Agenda
Interim Results 2006 Agenda Highlights Sales development Financial review Outlook Interim Results 2006 21
Slide 22: Our growth objectives for 2006
Outlook Our growth objectives for 2006 High single-digit sales growth Above market growth in most of our markets Record operating and net income EPS growth acceleration Interim Results 2006 22
Slide 23: Quarterly Group sales growth rate 2005 and 2006
Outlook Quarterly Group sales growth rate 2005 and 2006 QoQ QoQ Group Group sales sales growth growth rate rate (curr.adj./org.) (curr.adj./org.) 15.2% 2005 2006 10.5% 10.9% 7.5% 5.4% 5.0% -2.8% Q1 Q2 Q3 Q4 2005 Base effect, pricing decisions, introduction of new products and effective working days
Slide 24: Building industry
Outlook Building industry The residential market looks very healthy across Europe Several positive key developments in Germany Overall US fundamentals still look solid with residential activity softening but non-residential rising Sustained strong growth in our target markets in Asia Furth
Slide 25: Sales by market in Europe – historical information
Appendix Sales by market in Europe – historical information Sales in CHF Mio. Market FY 2005 FY 2004 FY 2003 Germany 634.4 644.6 431.9 Italy 256.3 252.7 207.8 Switzerland 227.2 210.2 161.0 Benelux 159.5 150.0 119.8 Austria 111.3 101.1 82.4 Central- / Eastern Europe 100.9 86.5 75.0 UK / Ireland 93.9
Slide 26: 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