Sika AG · SIX:SIKA
Sika — Investor Presentation (2010)
24 slides from Sika's investor presentation, Nov 17, 2010
Slide 1: Welcome to the Analyst Meeting 2010
Welcome to the Analyst Meeting 2010
Slide 2: Analyst Meeting 2010 – Ronald Trächsel, CFO
Analyst Meeting 2010 Ronald Trächsel, CFO
Slide 3: Sales Growth 2009
3 Sales Growth 2009 (in CHF mn) 2008 2009 ∆ % Net sales 4 624.5 4 154.9 -469.6 -10.2 - Organic growth -288.3 -6.2 - Acquisition effect + 108.8 +2.3 - Currency effect -290.2 -6.3
Slide 4: Net Sales
4 Net Sales 5000 4000 3000 CHF mn 2000 1000 0 2005 2006 2007 2008 2009 Growth rate 2009: -10.2 %
Slide 5: Net Sales CAGR
5 Net Sales CAGR 5000 CAGR: +9% 4000 3000 CHF mn 2000 1000 0 2005 2006 2007 2008 2009
Slide 6: Growth by Region
6 Growth by Region Growth in Local Currency 4 500 LC 473 472 4 000 -0.1% 428 Asia/Pacific 462 3 500 663 Latin America +8.0% 611 3 000 255 283 North America -7.7% CHF mn 2 500 1 005 2 000 970 IMEA +11.2% 1 500 -4.0% Europe South 1 000 1 693 1 547 Europe North -8.8% 500 Net Sales Actual 2009 Emerging
Slide 7: Consolidated Income Statement
7 Consolidated Income Statement (in CHF mn) Actual Actual 2008 Q4 % NS 2009 Q4 % NS Growth Net Sales 4'624.5 100.0% 4'154.9 100.0% -10.2% Material / Subcontracting -2'233.7 -1'859.6 Gross result 2'390.8 51.7% 2'295.3 55.2% excl. Acquisition / Personnel expenses -957.8 -954.3 -0.4% one offs -5% Other
Slide 8: Consolidated Income Statement w/o Restr.Cost
8 Consolidated Income Statement w/o Restr.Cost (in CHF mn) Actual Actual 2008 % NS 2009 Growth % NS Net Sales 4'624.5 100.0% 4'154.9 -10.2% 100.0% Gross result 2'390.8 51.7% 2'295.3 -4.0% 55.2% EBITDA 556.1 12.0% 539.9 -2.9% 13.0% EBIT 422.0 9.1% 400.6 -5.1% 9.6% Net profit 267.4 5.8% 269.4 0.7% 6.5
Slide 9: Gross Result
9 Gross Result 2500 2295 62% 2000 59% CHF mn 1500 56% 1000 55.2% 53% 500 50% 2005 2006 2007 2008 2009 Gross Result in % of Net Sales Gross result 2009 positively impacted by decrease of raw material prices.
Slide 10: Analysis of Margin Development 2009
10 Analysis of Margin Development 2009 (in CHF mn) Material cost 2008 2'242 48.5% Material cost 2009 1'867 44.9% Material cost* Q4 2009 @ 48.5 of 2008 2'014 Material cost impact: -228 volume decline -147 margin/mix impact -375 total growth = -7% decrease in raw material price Margin impact: +130 Raw
Slide 11: Non Material Cost Development
11 Non Material Cost Development Adjusted by one offs and acquisitions Cost Analysis 2009 Actual Actual Variance (in CHF mn) 2008 2009 absolute in % Net Sales (adj. for Acquisitions) 4'625 4'046 -12.5% Total non Material Cost 1'840 1'696 -144 -7.8% whereof: Personnel Cost comparable 958 914 -44 -4.6
Slide 12: Personnel Cost Development
12 Personnel Cost Development Actual 2008 Actual 2009 FTE 1.1. 11'600 12'958 Acquisitions 300 415 Recruitment 1'058 -1'004 FTE 31.12.09 12'958 12'369 -1'004 FTEs = Cost reduction/run rate -8% sales overall -10% sales organic -6%
Slide 13: EBITDA
13 EBITDA 700 15% 600 14% 540 CHF mn 500 13% 13.0% 400 12% 300 11% 200 10% 2005 2006 2007 2008 2009 EBITDA in % of Net Sales EBITDA 2009 positively impacted by - decrease of raw material prices / sales price stability EBITDA 2009 negatively impacted by - lower volumes / underabsorptions
Slide 14: EBIT Growth by Region – Segment Reporting
14 EBIT Growth by Region – Segment Reporting in % NS 550 2008 2009 500 32 54 Asia/Pacific 6.5% Æ 11.5% 450 59 57 400 46 Latin America 13.6% Æ 14.3% 64 350 32 CHF mil. 42 North America 7.1% Æ 10.6% 300 250 145 137 IMEA 12.4% Æ 16.1% 200 150 Europe South 13.8% Æ 14.6% 100 191 159 50 Europe North 11.0%
Slide 15: Segment Reporting
15 Segment Reporting (in CHF mn) Actual 08 Actual 09 deviation MCHF MCHF C09 vs. C08 EBIT EBIT in % EUN 191 45% 159 40% -32 -17% EUS 145 34% 137 34% -8 -6% IMEA 32 8% 42 10% 10 31% NA 46 11% 64 16% 18 38% LA 59 14% 57 14% -2 -3% APAC 32 8% 54 13% 22 69% Central Services -83 -20% -112 -28% -29 34% To
Slide 16: EBIT Development Central Services
16 EBIT Development Central Services (in CHF mn) Actual 08 Actual 09 deviation C09 vs. C08 EBIT EBIT Service Units -64 -69 -5 SSC -19 -42 -24 Central Services -83 -111 -29 Variances: - Change in provisions -5 - underabsorption plants / FX -24 -5 -24
Slide 17: Net Profit after Taxes to Net Sales excl. Restructuring Cost
17 Net Profit after Taxes to Net Sales excl. Restructuring Cost 350 8% 269 250 6.5% 6% CHF mn 150 4% 50 2% 2005 2006 2007 2008 2009 Net Profit in % to Net Sales Excl. Restructuring Cost absolute Net Profit on same level as 2008 / second highest % NS in history
Slide 18: Taxes
18 Taxes 140 40% 120 38% 100 36% 90 CHF mn 80 34% 60 32% 40 28.5% 30% 20 28% 0 26% 2004 2005 2006 2007 2008 2009 Tax in % of Net Profit before Tax
Slide 19: Consolidated Balance Sheet
19 Consolidated Balance Sheet (in CHF mn) Actual Actual 31.12.2008 31.12.2009 Bond +300 Cash / Marketable securities 321.4 811.0 OFCF +200 Other current assets 1'422.4 1'282.1 Total current assets 1'743.8 2'093.1 Total non-current assets 1'465.6 1'536.3 Total assets 3'209.4 3'629.4 Total current lia
Slide 20: Cash Flow Statement
20 Cash Flow Statement (in CHF mn) Actual Actual 2008 2009 Net profit 373.3 315.6 Depr./Amort./Imp. 134.1 159.4 Change in Provisions -20.9 42.4 Change in NWC 37.5 100.7 Other -5.0 10.5 Tax payments -142.2 -102.3 Cashflow from Operating Activities 376.8 526.3 160 CapEx/Sale of Assets/Acquisitions -29
Slide 21: Operating Free Cash Flow
21 Operating Free Cash Flow 400 369 10% 350 8% 300 8.9% 250 6% CHF mn 200 150 4% 100 2% 50 0 0% 2005 2006 2007 2008 2009 OFCF in % of Net Sales
Slide 22: Key Ratios
22 Key Ratios (in CHF mn) Actual Actual 31.12.2008 31.12.2009 Equity ratio 45.6% 43.9% Net Debt 465 265 NWC 893 836 NWC (in % of NS) 19.3% 20.1% Gearing (Net Debt/Total Equity) 31.8% 16.6% ROCE (EBIT / av. capital employed) 20.3% 19.3% 2009 excl. Restructuring Cost
Slide 23: Financial Targets
23 Financial Targets 5 Year Targets 2005 2006 2007 2008 2009 average Net sales growth (organic) 8-10% 13.6% 16.9% 13.0% 5.9% -6.2% 8.6% EBITDA in % Net sales 12-14% 12.1% 13.2% 13.9% 12.0% 13.0% 12.8% Profit in % Net sales >6% 5.3% 6.0% 7.5% 5.8% 6.5% 6.2% OpFCF in % Net sales 4-6% 4.4% 4.9% 4.2% 3.
Slide 24: Proposed Appropriation of Retained Earnings
24 Proposed Appropriation of Retained Earnings (in CHF mn) 2008 2009 Group Profit (after minorities) 266.7 225.9 Dividend 111.7 111.8 Payout Ratio 41.9% 49.5% Dividend payment CHF 45.00 per bearer & CHF 7.50 per registered share