Sika Ag · SIX:SIKA
Sika — FY2005 Earnings Presentation
15 slides from Sika's earnings presentation, Mar 8, 2006
Slide 1: Analysts Conference March 8, 2006
Analysts Conference March 8, 2006 Markus Zenhäusern, CFO Growth in CHF mil. in % Growth Net sales 356.7 13.9% Growth EBIT 35.1 16.7% Growth Op. FCF -23.9 -15.7% 2 1
Slide 2: Consolidated Income Statement and Balance Sheet
Consolidated Income Statement (in CHF mil.) 2004 % NS 2005 % NS Net sales 2,559.8 100.0 2,916.5 100.0 - Material / Subcontracting 1,057.3 -41.3 -1,290.7 -44.3 Gross profit 1,502.5 58.7 1,625.8 55.7 Cost of personnel -629.0 -24.6 -686.4 -23.5 Other operating costs -552.3 -21.6 -587.2 -20.1 EBITDA 321
Slide 3: Cash Flow Statement and Key Data / Ratios
Cash Flow Statement (in CHF mil.) 31.12.2004 31.12.2005 EBIT 209.6 244.7 Depr./Amort./Imp. 111.6 107.5 Change NWC 9.7 -36.0 Other operating activities -80.1 -85.2 Cash flow from operating activities 250.8 231.0 Cash flow from investing activities -126.9 -483.7 Op. Free Cash Flow 152.6 128.7 Cash flo
Slide 4: Net Working Capital and Impact of material expenses
Net Working Capital* (in CHF mil.) 2004 2005 2005 2005 actual actual curr. adj. curr. adj. Net sales 2,559.8 2,916.5 2,869.5 12.1% Accounts receivable 509.2 615.2 598.8 17.6% Inventories 272.5 323.7 307.6 12.9% Other current assets 60.4 56.5 53.2 -11.9% Total WC 842.1 995.4 959.6 14.0% Accounts paya
Slide 5: Segment Results and Impact Sarna on Consolidation
Segment Results* (in CHF mil.) Construction Industry Total Net sales 2,177 740 2,917 Net sales as % Total sales 74.6% 25.4% 100% EBITDA 254 128 352 EBITDA as % Net sales 11.7% 17.3% 12.1% EBIT 184 97 245 EBIT as % Net sales 8.5% 13.1% 8.4% Total assets 1,127 608 2,017 EBITDA as % Total assets 22.5%
Slide 6: Impact Sarna on Consolidation; Net Sales
Impact Sarna on Consolidation (in CHF mil.) Impact on Income Statement Sarnafil Sales 2005 413 Sarnafil EBIT 2005 42.4 Impacts on EBIT: - Various one time expenses ca. < - 10 in 2006 - Depreciation asset fair valuation* - 20 in 2006 - 11 in 2007 ff Funding costs acquisition -11 * No impact on Cash f
Slide 7: Net Sales per Region and Gross Profit
Net Sales Net Sales per Region 2000 per Region 2005 A/P 11% A/P 12% LA 9% LA 8% NA 13% NA 17% E 63% E 67% in CHF in CHF Eastern Europe grew from CHF 40.2 mil. in 2000 to CHF 122.1 mil. in 2005. 13 Gross Profit 64% 1500 61% 1000 CHF m il. 500 58% 0 55% 2001 2002 2003 2004 2005 Gross profit as % of Ne
Slide 8: EBITDA and Financing activities
EBITDA 350 15% 300 14% 250 13% CHF m il. 200 12% 150 11% 100 10% 50 9% 0 8% 2001 2002 2003 2004 2005 EBITDA as % of Net sales We focus on EBITDA (abs.) growth and on RONOA. 15 Financing activities 25 20 CHF m il. 15 10 5 0 2002 2003 2004 2005 Interests Other Financing Activities - Lower interests du
Slide 9: Taxes and Net Profit after Taxes to Net Sales
Taxes 80 45% 40% 60 CHF m il. 35% 40 30% 20 25% 0 20% 2001 2002 2003 2004 2005 Tax as % of Net profit before Tax Declining tax rate due to tax saving initiatives. 17 Net Profit after Taxes to Net Sales 150 6% CHF m il. 100 4% 50 2% 0 0% 2001 2002 2003 2004 2005 Net profit as % to Net sales Positive
Slide 10: Net Profit to Invested Capital and Equity
Net Profit after Taxes to Invested Capital* 14% 140 12% 120 10% 100 CHF m il. 8% 80 60 6% 40 4% 20 2% 0 0% 2001 2002 2003 2004 2005 Net profit as % of Invested capital - We focus on Return on Investments. - Improvements of ROI can be realized with our growth strategy. 19 * without Sarna Net Profit a
Slide 11: EBIT to RONOA and Operating Free Cash Flow
EBIT to RONOA 250 20% 200 16% CHF m il. 150 12% 100 8% 50 4% 0 0% 2001 2002 2003 2004 2005 RONOA in % - We focus on Return on Investments. - Improvements of ROI can be realized with our growth strategy. 21 Operating Free Cash Flow 200 20% 150 15% CHF m il. 100 ? 10% 50 5% 0 0% 2001 2002 2003 2004 20
Slide 12: Shareholder's Equity and Net Cash
Shareholder’s Equity 1000 900 CHF m il. 800 700 2001 2002 2003 2004 2005 In particular in 2002 we had a massive FOREX impact. Since 2003 the Debt/Equity Ratio of local companies has been reduced from 55% to 35%. 23 Net Cash 2000 2001 2002 2003 2004 2005 -50 -150 CHF m il. -250 -350 ? -450 Aquisition
Slide 13: Net Working Capital and Net Operating Assets
Net Working Capital* 600 26% 500 24% CHF m il. 400 22% 300 20% 2001 2002 2003 2004 2005 NWC as % of Net sales NWC increase due to strong growth, in particular in Q4 2005. 25 * without Sarna Net Operating Assets* 1400 70.0% 1300 ? 65.0% CHF m il. 60.0% 1200 55.0% 1100 50.0% 1000 45.0% 2001 2002 2003
Slide 14: Cost of Personnel and Shareholder Focus
Cost of Personnel 700 29% 650 27% CHF m il. 600 25% 550 500 23% 2001 2002 2003 2004 2005 Personnel costs as % of Net sales Reduced cost of personnel as % of Net sales due to better efficiency and higher third party finished goods supply. 27 Shareholder Focus 1200 1000 800 600 400 200 1.3.02 1.9.02 1
Slide 15: Trends 2006
Trends 2006 - Material Prices - Price Adjustments - Volume Growth - Efficiency Improvements - Strategy 2005-2010 Implementation - Cooperation Sarnafil 29 Sika – for lasting bonds Contact: A. Spieser, Corporate Communications & Investor Relations Sika Services AG, Zugerstrasse 50, CH-6341 Baar, Switz