Geberit Ag · SIX:GEBN
Geberit — FY2004 and Q1 2005 Earnings Presentation
34 slides from Geberit's earnings presentation, Apr 25, 2005
Slide 1: Full Year Results 2004 and Results Q1 2005
Full Year Results 2004 and Results Q1 2005 25 April 2005
Slide 2: Agenda
Agenda ! Year end review A. M. Baehny ! Sales development A. M. Baehny ! Financial results R. Iff ! Summary A. M. Baehny Geberit AG, 25. April 2005 2
Slide 3: 2004 in review: Important facts
2004 in review Important facts ! Sales increase of 35.8% to CHF 1‘907 Mio. ! Organic sales growth in local currency of 8.9% ! Improvement of EBITDA margin to 23.8% ! Acquisition and integration of Mapress ! Above average growth in all markets ! Strong growth in our key product lines ! Innovation act
Slide 4: 2004 in review: Innovation – selected new products
2004 in review Innovation – selected new products ! Concealed cistern for ! Balena DWC 8000 narrow wall installations ! Bathtub drain with ! New generation of optimized water flow and a Geberit Mepla Systems new design option allowing for fresh water flat installation ! New sink trap with ! Intellig
Slide 5: 2004 in review: Integration of Mapress
2004 in review Integration of Mapress ! Fine-tuning of the overall structure - Acquisition of sales representative in Norway - Acquisition of sales representative in UK - Spin-off of the Blücher business ! Sales integration into the Geberit organization - Integration of Mapress sales people into Geb
Slide 6: 2004 in review: Active product portfolio management
2004 in review Active product portfolio management Sale Sale of of Blücher Blücher business business Exiting Exiting underground underground piping piping systems systems ! Was not a strategic business ! Concentration on piping systems with good margins ! Different business model ! Reinforced core p
Slide 7: Development of material cost as a percent of sales
2004 in review Development of material cost as a percent of sales ! Relative material cost development, 31% since 2000, shows little fluctuation 1'907 30% ! Material cost in percent of sales at Mapress represented 41% in 2004 1'209 1'273 1'404 1'165 29% ! Abrupt rise in raw material price levels 571
Slide 8: Agenda
Agenda ! Year end review A. M. Baehny ! Sales development A. M. Baehny ! Financial results R. Iff ! Summary A. M. Baehny Geberit AG, 25. April 2005 8
Slide 9: Strong organic growth
Sales development 2004 Strong organic growth In CHF + 9,5% + 35,8% 2% Currency 25% Organic growth 9 1'907 73% 370 1'404 124 Acquisition e a b d c 2003 Organic Acquisition Currency 2004 In local + 8,9% + 35,2% currency Geberit AG, 25. April 2005 9
Slide 10: A second half 2004 normalization
Sales development 2004 A second half 2004 normalization 2002 2003 2004 +12.3% +8.2% +8.9% +7.6% +6.4% +5.4% +4.9% +4.8% +2.1% H1 H2 FY H1 H2 FY H1 H2 FY ! Positive second half ! H1 slow down ! H1 acceleration dynamics ! H2 improved anew ! Normalization in H2 Note: Organic growth in local currency Ge
Slide 11: High organic growth in all regions
Sales development 2004 High organic growth in all regions Variance to prior year in CHF curr.adj./org. Asia America CHF 44 Mio. CHF 119 Mio. 2% + 39.1% + 8.6% 6% Europe + 2.8% + 9.3% America + 28.3% + 18.0% Europe Asia CHF 1‘744 Mio. 92% CHF 1‘907 Mio. Geberit AG, 25. April 2005 11
Slide 12: Europe - H1 accelerated growth followed by an H2 normalization
Sales development 2004 Europe - H1 accelerated growth followed by an H2 normalization ! Sales increase of 39.1% to CHF 1‘744 Mio. ! Organic sales growth of 8.6% in local currency ! Strong H1 growth of 12.3% (org./curr.adj.) followed by an H2 normalization to 4.8% (org./curr.adj.) ! All markets grew,
Slide 13: Europe - All markets above expectations
Sales development 2004 Europe - All markets above expectations Sales Variance to prior year in Mio. CHF %CHF %curr.adj./org. Germany 644.6 49.2 7.4 Italy 252.7 21.6 11.5 Switzerland 210.2 30.6 11.2 Austria 101.1 22.7 5.6 United Kingdom 99.7 44.1 8.5 Netherlands 79.0 20.8 8.7 France 68.5 15.5 1.0 1 B
Slide 14: North America - High single-digit growth
Sales development 2004 North America - High single-digit growth CHF % YoY % YoY in Million CHF Local curr. / org. North America 119.0 2.8 9.3 ! Robust construction development ! Sales growth of 2.8% to CHF 119 Mio. ! Strong Q4 secured an annual growth of 9.3% in local currency ! Chicago Faucet produ
Slide 15: Asia – Double-digit growth
Sales development 2004 Asia – Double-digit growth CHF % YoY % YoY in Million CHF Local curr. / org. Asia 44.0 28.3 18.0 ! Sales increase of 28.3% to CHF 43.5 Mio. ! Local currency organic growth of 18% ! Sales growth in almost all major markets ! Start of the „China Turbo“ project with the opening o
Slide 16: Sales per product line
Sales development 2004 Sales per product line Sanitary Systems (53%)1 Piping Systems (47%)1 Installation Flushing Public Waste Fittings Building Drainage Supply Systems Underground Piping Systems (31%) Systems (10%) (7%) and Traps (5%) Systems (18%) (25%) Systems (4%) Sales: CHF 1’907 Mio. 1 Percent
Slide 17: Sanitary Systems with double digit growth
Sales development 2004 Sanitary Systems with double digit growth Sales Sales in in CHF CHF million million 1'011 593 195 133 90 Installation Systems Flushing Systems Public Waste Fittings and Traps Total Sanitary Systems Variance to prior year in % Variance to prior year in % 13.9 12.5 CHF Curr. adj
Slide 18: Piping Systems growth to CHF Million
Sales development 2004 Piping Systems growth to CHF 896 Million Sales Sales in in CHF CHF million million 896 475 340 81 Building Drainage Systems Supply Systems Underground Piping Systems Total Piping Systems Variance Variance to to prior prior year year in in % % 213.4 CHF Curr. adj. / org. 84.9 3
Slide 19: Sales Q1 2005: Key Facts
Sales Q1 2005 Key Facts ! Sales decrease of 7.2% to CHF 481.5 Mio. ! Organic sales growth in local currencies of –2.9% ! Strong base effect in the Q1 2004 comparison ! Weak signals from the economy in some important markets ! Solid financial base with equity ratio at 44.6% ! Net income increased by
Slide 20: Negative market sentiment in some key markets
Sales Q1 2005 Negative market sentiment in some key markets Difference to previous year Asia Middle East/ (1.1%) Africa in CHF ccy adj./org. America (1.3%) (5.4%) Europe - 7.6% - 3.6% America - 13.5% - 6.1% + 40.8% + 77.3% Europe Asia (92.2%) CHF 481.5 Mio. Middle East+ 29.8% + 51.8% /Africa Geberit
Slide 21: Agenda
Agenda ! Year end review A. M. Baehny ! Sales development A. M. Baehny ! Financial results R. Iff ! Summary A. M. Baehny Geberit AG, 25. April 2005 21
Slide 22: Financial key figures
Financial results 2004 Financial key figures 2004 YoY Million CHF % ! Operating margins above prior year Sales 1,906.8 35.8 ! Strong EBIT growth EBITDA 453.0 37.4 margin 23.8% ! Net Income margin 40 basis points EBIT 305.1 47.8 below prior year margin 16.0% ! Strong EPS growth Net Income 193.3 31.5
Slide 23: Over-proportional growth of operating results
Financial results 2004 Over-proportional growth of operating results CHF in Millions 2004 % 2003 % % YoY Sales 1'906.8 100.0 1'403.9 100.0 35.8 Sales deductions 253.4 13.3 194.3 13.8 30.4 Net sales 1'653.4 86.7 1'209.6 86.2 36.7 Cost of materials 570.9 29.9 396.8 28.3 43.9 Personnel expenses 441.5 2
Slide 24: EBIT margin analysis
Financial results 2004 EBIT margin analysis EBIT Margin 2003 14.7% One time deprecation 2003 +0.6% EBIT Margin 2003 (net of one time expenses) 15.3% Volume effects +1.9% Price effects, net +0.7% FX translations gains +0.1% Increased R&D expenses -0.5% Increased customer bonuses -0.4% +1.8% EBIT Marg
Slide 25: Substantial increase in Net Income
Financial results 2004 Substantial increase in Net Income CHF in Million 2004 % 2003 % % YoY Operating profit (EBIT) 305.1 16.0 206.4 14.7 47.8 Financial income and (expenses), net -30.0 -1.6 -23.4 -1.7 28.2 Profit before tax and minor. int. 275.1 14.4 183.0 13.0 50.3 Income tax expenses 81.1 4.3 34
Slide 26: Strong cashflow generation
Financial results 2004 Strong cashflow generation CHF in Million 2004 2003 % YoY EBITDA 453.0 329.8 37.4 Interest expense, net -30.0 -23.4 Income tax expense -81.1 -34.1 Minority interest -0.7 -1.9 Changes in long-term provisions 5.4 -5.8 Changes in long-term assets and liabilities 5.1 6.7 Net cashf
Slide 27: Solid Balance Sheet
Financial results 2004 Solid Balance Sheet CHF in Million 2004 2003 Cash and cash equivalents 81.6 181.3 Net working capital 130.9 77.6 Property, plant and equipment 538.8 490.9 Financial assets and other non-current assets 97.5 102.0 Goodwill and intangible assets 878.8 469.7 Total assets 2'003.9 1
Slide 28: Growth 1999-2004
Financial results 2004 Growth 1999-2004 CHF in Million 2004 2003 2002 2001 2000 1999 CAGR % Sales 1,907 1,404 1,273 1,165 1,208 1,191 9.9 Operating profit (EBIT) 305 207 186 157 190 176 11.6 Net income 193 147 118 92 104 54 29.0 Net cashflow 352 271 247 207 208 186 13.6 EPS (in CHF) 47.2 36.3 29.2 2
Slide 29: Financial results Q1 2005: Consolidated results
Financial results Q1 2005 Consolidated results Mio. CHF Q1 2005 Q1 2004 % prev. Y Sales 481.5 518.9 - 7.2 EBITDA 119.4 134.8 - 11.4 % of sales 24.8 26.0 EBIT 98.6 102.1 - 3.4 % of sales 20.5 19.7 Net income 70.2 66.2 + 6.0 % of sales 14.6 12.8 EPS (CHF) 17.16 16.14 + 6.3 EPS, adj. (CHF) 17.16 18.93
Slide 30: Financial results Q1 2005: Balance sheet
Financial results Q1 2005 Balance sheet Mio. CHF Q1 2005 31.12.04 Q1 2004 Total assets 2'058.2 2'007.2 2'215.5 Equity 917.1 874.4 806.1 Equity ratio 44.6% 43.6% 36.4% Net Debt 408.2 453.7 676.5 Gearing 44.5% 51.9% 83.9% Geberit AG, 25. April 2005 30
Slide 31: Agenda
Agenda ! Year end review A. M. Baehny ! Sales development A. M. Baehny ! Financial results R. Iff ! Summary A. M. Baehny Geberit AG, 25. April 2005 31
Slide 32: Summary: Quality growth
Summary Quality growth Sales Sales 1,907 1,404 1,209 1,165 1,273 1,191 ! The Mapress acquisition has positively impacted our results 1999 2000 2001 2002 2003 2004 ! Sustainable performance Sales (Mio. CHF) EBITDA EBITDA 453 ! Confirmation of mid-term goals 330 304 298 296 262 25.5% 24.6% 23.5% 23.8%
Slide 33: Summary
Summary ! Geberit stands on a solid foundation - High reputation - Good market position - Excellent product portfolio for future value generation ! Strong operating capability ! Margins and cash flows at high levels ! Quality growth through innovation, acquisition and geographical expansion ! Focus
Slide 34: 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