SIKA INVESTOR PRESENTATION JULY 26, 2018 · growth of 13.9% - new records in sales and profit first...
Transcript of SIKA INVESTOR PRESENTATION JULY 26, 2018 · growth of 13.9% - new records in sales and profit first...
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GROWTH OF 13.9% - NEW RECORDS IN SALES AND PROFIT FIRST HALF 2018
SIKA INVESTOR PRESENTATIONJULY 26, 2018
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HIGHLIGHTS FIRST HALF 2018
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1. New records in sales and profit
+13.9% sales growth in local currencies (15.9% in CHF) to CHF 3,470.1 million
+10.6% higher EBIT to CHF 444.6 million
Without one-off costs (related to resolution of dispute with SGO) over-proportional EBIT increase of more than 16%
2. Key investments
New national subsidiary in Honduras
New plants in Senegal, Saudi Arabia, Vietnam
Closing of 2 acquisitions: Faist ChemTec and Index
3. Outlook and Strategy
Strategic targets for 2020 unchanged
Strong outlook 2018 confirmed
GROWTH OF 13.9% - NEW RECORDS IN SALES AND PROFIT
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Approval of all proposals at EGM of June 11
Transfer of control premium to all shareholders
Transaction EPS accretive to all shareholders
Implementation of efficient capital structure
Modern governance model
Acceleration of Sika’s growth strategy, review of targets 2020 and beyond
SIKA ENDS DISPUTE WITH SGO AND SECURES INDEPENDENCE
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KEY FIGURES FIRST HALF 2018RECORD RESULTS – STRONG MOMENTUM CONTINUES
in CHF mn 2017 2018 Δ %
Net sales 2,994.9 3,470.1 +15.9%
Gross results as % of net sales 55.1 53.6
EBITDA 488.2 544.8 +11.6%
EBIT 402.1 444.6 +10.6%
Net profit 285.7 318.2 +11.4%
Operating free cash flow 63.0 11.5
ROCE in % 28.0 26.2
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FIRST HALF SALES GROWTH13.9% SALES GROWTH IN THE FIRST HALF 2018
6.0% 5.7% 6.8%
1.6% 2.4%
7.1%
0%
2%
4%
6%
8%
10%
12%
14%
16%
1HY 2016 1HY 2017 1HY 2018
13.9%
8.1%7.6%
acquisition
organic
in LC
in CHF mn 1HY 2016 1HY 2017 1HY 2018
Net sales 2,806.2 2,994.9 3,470.1
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SALES FIRST HALF 2018GROWTH IN ALL REGIONS
EMEA Americas Asia/Pacific Global Business
76%
24%
Construction
Industry
+19.7% +9.5% +5.7% +32.0% Growth in CHF
+13.6% +13.6% +5.0% +28.5% Growth in LC
6.1% -4.1% +0.7% +3.5% FX impact
+7.5% +5.1% +0.0% +20.7% Acquisition
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STRONG GROWTH MOMENTUM CONTINUES IN 201813.9% SALES GROWTH (15.9% IN CHF)
+ 13.6%
Americas
EMEA
Asia/Pacific
(in CHF mn, growth in LC)
+ 5.0%+ 13.6%
6M 2017 6M 2018
Global Business
+ 28.5%
8
8891,558
559464
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SIX-YEAR OVERVIEW – HALF-YEAR FIGURES CONTINUOUSLY IMPROVING PROFIT
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SUCCESSFUL STRATEGY EXECUTION
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SIKA’S GROWTH MODEL DELIVERSKEY INVESTMENTS SINCE 2015
- Successful Target Market concept
- Megatrends driving growth
- 217 new patents filed
- 20 Global Technology Centers
- 28 new plants opened
- 11 new national subsidiaries
- 17 acquisitions in all regions
- CHF 705 million sales added
- Strong corporate culture
- High employee loyalty
Market Penetration
Innovation
Emerging Markets
Acquisitions
Values
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SIKA’S GROWTH MODEL DELIVERSCONTINUED GROWTH IN SALES AND PROFIT (FULL YEAR)
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NET SALES
7.6%
9.0%
10.2%
11.4%
12.3%
13.8%14.3%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
100
200
300
400
500
600
700
800
900
1000
1100
2011 2012 2013 2014 2015 2016 2017
as % of net sales
EBIT
5.3% 9.4% 13.0% 6.2% 5.5% 9.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
4000
4500
5000
5500
6000
6500
7000
2011 2012 2013 2014 2015 2016 2017
% growth in local currencies
NET SALES
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MARKET PENETRATION
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SIKA’S 101 SUBSIDIARIES
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HONDURAS - 2018
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SIKA’S MARKET POTENTIALLARGE AND GROWING MARKET SEGMENTS
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CONCRETE
WATER-PROOFING
SEALING & BONDING
ROOFING
FLOORING
INDUSTRY
2017> CHF 70 BILLION
CONCRETE
WATER-PROOFING
SEALING & BONDING
ROOFING
FLOORING
INDUSTRY
2020CHF 80 BILLION
TOTAL MARKET SIZE
REFURBISHMENT REFURBISHMENT
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MEGATRENDS DRIVE OUR GROWTHURBANIZATION, NEW VEHICLE DESIGN AND SUSTAINABILITY
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Higher demand for infrastructure and
refurbishment solutions
Sustainability: Increasing demand for safe-to-use and
low-emission products
Increased safety, fire, water, earthquake and quality requirements
Increasing world population with urbanization and
megacities
New modular vehicle
manufacturing concepts need fast,
high strength bonding systems
New vehicle design with material mix requires bonding
solutions
Rising demand for high performance concrete, sealing
and waterproofing
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MARKET PENETRATION - FOCUS ON ATTRACTIVE MARKETS:CROSS-SELLING, LIFE-CYCLE MANAGEMENT, A STRONG BRAND
Sealing & Bonding Refurbishment Industry
Concrete Waterproofing Roofing Flooring & Coating
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GROWTH MODEL WITH EARLY MARKET PENETRATIONFROM NEW BUILD TO REFURBISHMENT
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Emerging markets Developing markets Mature markets
Sika’s
mar
ket
po
ten
tial
Infrastructure
Higher buildingstandards
Repair andrefurbishment
Long-termmarket potential Sika
SIKA HAS SOLUTIONS FOR ALL MARKETS
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INNOVATION
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INNOVATIONSTRONG TRACK RECORD
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217patents were filed since2015
More than
900employees are dedicated to Research and Development
283invention disclosures Since 2015
20Technology Centers worldwide
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FROM PATENTS TO WORLD CLASS PRODUCTSINNOVATION INCREASES SALES AND PROFIT
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NEW PATENTS SINCE 2015
NEW PRODUCTSLAUNCHED SINCE
2015
217
1,243=
+20% ANNUAL ORGANIC SALES GROWTH INCREASE
30% ANNUAL EBIT CONTRIBUTION
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ACCELERATED BUILD-UP OF EMERGING MARKETS
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EMERGING MARKETS BUILD-UP SINCE 2015CAPTURING GROWTH POTENTIAL IN NEW MARKETS
28newplantsopened
11new national subsidiaries
36%of sales in emerging markets
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5acquisitions
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ACQUISITIONS
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SIKA WILL ACT AS MARKET CONSOLIDATORFRAGMENTATION OFFERS ACQUISITION OPPORTUNITIES
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Sika
CONSTRUCTION CHEMICAL MARKET 2017> CHF 60 BILLION
Top 10 companies with a combined market share of 40%
Other
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ACQUISITIONS SINCE 2015GROWTH PLATFORMS FOR THE FUTURE
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17acquisitions
705million CHF additional turnover
In all
7Target Markets
In all
4regions
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VALUES AND PRINCIPLES
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Customer first
Courage for innovation
Sustainability & integrity
Empowerment and respect
Manage for results
SIKA’S VALUES AND PRINCIPLESSTRONG CORPORATE CULTURE
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TARGETS 2020
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SIKA’S GROWTH STRATEGY 2020 CONFIRMEDTO BE REVIEWED AND UPDATED IN 2019
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6 - 8% ANNUAL GROWTH MARKET PENETRATION
INNOVATION
EMERGING MARKETS
ACQUISITIONS
VALUES
30 NEW PLANTS
14 - 16% EBIT MARGIN PER YEAR
> 25% ROCE PER YEAR
105 NATIONAL SUBSIDIARIES
> 10% OPERATING FREE CASH FLOW PER YEAR
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OUTLOOK 2018
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Sales increase of more than 10% expected with a sales target of CHF 7 billion in 2018
Volatile and rising raw material prices will continue to be a challenge
Overproportional growth in profit expected for the year 2018 as a whole
STRONG OUTLOOK FOR 2018CONTINUATION OF SUCCESSFUL GROWTH STRATEGY
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THANK YOU FOR YOUR ATTENTION
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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 of, among other things, strategy, goals, plans or intentions. Various factors may cause actual results to differ materially in the future from those reflected in forward-looking statements contained in this presentation, among others:
Fluctuations in currency exchange rates and general financial market conditions
Interruptions in production
Legislative and regulatory developments and economic conditions
Delay or inability in obtaining regulatory approvals or bringing products to market
Pricing and product initiatives of competitors
Uncertainties in the discovery, development or marketing of new products or new uses of existing products, including without limitation negative results of research projects, unexpected side-effects of pipeline or marketed products
Increased government pricing pressures
Loss of ability to obtain adequate protection for intellectual property rights
Litigation
Loss of key executives or other employees
Adverse publicity and news coverage.
Any statements regarding earnings per share growth are not a profit forecast and should not be interpreted to mean that Sika’s earnings or earnings per share for this year or any subsequent period will necessarily match or exceed the historical published earnings or earnings per share of Sika.
For marketed products discussed in this presentation, please see information on our website: www.sika.com
All mentioned trademarks are legally protected.
FORWARD-LOOKING STATEMENT
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