Analyst conference Full year review 2016 14 March 2017 Agenda - - PowerPoint PPT Presentation

14 March 2017

Analyst conference

Full year review 2016

Christian Buhl, CEO Roland Iff, CFO

14 March 2017

Agenda

Agenda

Review

• C. Buhl

Sales development

• C. Buhl

Financial Results

• R. Iff

Sanitec integration

• C. Buhl

Building industry outlook

• C. Buhl

Geberit outlook

• C. Buhl

Summary

• C. Buhl

2

Excellent results in an improved market environment

Review 2016

• Group net sales increased by 8.3% to CHF 2’809 million
• In local currencies, net sales increased by 6.4% organically
• Adjusted EBITDA increased by 14.6%
• Adjusted EBITDA margin increased by 160 bp to 28.3%
• Adjusted net income increased by 18.4%, adj. net income margin reached 20.8%
• Adjusted earnings per share increased by 19.8% to CHF 15.85
• Free cashflow increased by 16.5%, reaching 20.1% of net sales

3 14 March 2017 3

14 March 2017

• The Board of Directors proposes a dividend of CHF 10.00 per share, an

increase of 19.0% vs. previous year

• 757’000 shares bought back and cancelled as part of the program completed

by February 2016

• New share buy-back program of CHF 450 million over a period of max. 3 years

starting end of Q2 2017

• Sanitec integration on track – majority of synergies captured
• Divestment of non-core businesses Koralle and Varicor finalized

Review 2016

Dividend increase of 19.0%

4

14 March 2017

Investments – In line with the medium-term plan

Review 2016

• 2016 capital expenditures 5.6%

below previous year

• Increased spend for

modernization & rationalization

• Investments 2016 correspond to

5.0% of net sales

• All major projects implemented

as planned Capex, CHF million

5

147 105 98 86 2015 2014 2013 2012 139 41% 43% 16% 2016

Capacity expansion Modernization & rationalization New products

• Expansion of logistics capacity – up to

250 trucks per day

• New concept for long goods storage
• Innovative technologies and further

process innovations

• Operation ramp-up as of March 2017
• Capex: EUR 40 million

14 March 2017 Review 2016 6

Investments – Expansion of logistics center in Pfullendorf

Innovation and marketing – Increased expenditure

• Increasing

expenditure in innovation and marketing

• R&D expenditure
• f 2.6% of net

sales in 2016

• Basis for future

value creation

14 March 2017 Review 2016 1) Including capitalized R&D expenses 7

98 84 84 87 105 2015 2016 2014 2013 2012 72 63 56 51 50 R&D1, in CHF million Marketing, in CHF million

Ceramics

Innovation – Successful product introductions in 2016

Geberit urinal system Geberit Silent-Pro New ceramic and complementary product range for the Nordics “Nordic style” No need to remove for maintenance & service “Suits every need” New highly sound-insulating plug- in drainage system “Stay calm”

14 March 2017 8 Review 2016

9 14 March 2017 Review 2016

Customer relations – Key activities, example Germany

• 39 Geberit BauTreff events with 9’200 customers
• 131 Geberit on Tour events with 10’800 customers
• 3 Geberit ArcDate events with 300 customers
• 26 fire protection events with 2’100 customers
• 5 Mapress Foren events with 70 customers
• 2 TrackDays events with 30 customers
• 3 AquaClean Mobil events with 3’500 contacts
• 10 trade fairs and 540 trade fair participations

Events

• Installer / Planer sales rep.

500 visits

• Showroom sales rep.

450 visits Customer visits – Pull Annual market activities 2016

• 620 trainings with 10’800 customers
• 10 webinars with 900 customers

Trainings

• Wholesaler sales rep.

450 visits Customer visits – Push 70’000 customer visits 26’000 customers at events 11’700 customers at trainings

(growth vs. 2015)

(+17%) (+30%) (+12%)

14 March 2017 Review 2016 10

Customer relations – First events of integrated sales organization “Geberit BauTreff”

• 39 "Geberit BauTreff" events with 9'200

customers in urban areas

• New concept for customers along entire value

chain

• Presentation of new & combined product

portfolio “Geberit on Tour”

• 131 "Geberit on Tour" events with 10'800

customers in rural areas

• Adapted mobile concept for installers &

wholesalers

• Focus on new products & system technology

14 March 2017

Employees – Decrease due to divestment and synergies

Review 2016

• 11’592 employees per of 2016
• Decrease of 634 individuals, or 5.2% compared to the end of the previous year mainly due

to Koralle divestment and integration synergies

11

2% 4% 8% 24% 62%

R&D Apprentices Administration Sales & Marketing Production

Number of employees by business processes 2016 28% 40% 8% 2% 22%

America Eastern Europe Rest of Western Europe Germany Asia / Africa

Number of employees by region 2016

14 March 2017 Review 2016

Sustainability – Improvement of our environmental footprint

The environmental impact is measured in impact points (UBP) according to the Swiss impact assessment method of ecological scarcity (version 2013)

• Environmental impact in relation to

net sales declined by 10.8% in 2016

• Energy consumption reduced by

5.2% in 2016

• CO2 emissions in relation to net sales

reduced by 9.9% in 2016

• Environmental impact in relation to

net sales reduced by 49% in ten years Environmental impact 2007-2016

12

239

• 49%

2016 14 12 10 08 2006 249 100% Environmental impact in relation to net sales currency-adjusted, in % (Index: 2006 = 100) Environmental impact organic, in UBP billion Environmental impact increase through M&A, in UBP billion

14 March 2017 Review 2016

Social responsibility – Volunteer project with Geberit employees in Nepal

13

• Geberit employees working together with

local people in a community in Western Nepal

• Supporting construction work of a water

pipeline

• Cooperation with Helvetas water projects

in Nepal including financial funding

14 March 2017

Agenda

Agenda

Review

• C. Buhl

Sales development

• C. Buhl

Financial Results

• R. Iff

Sanitec integration

• C. Buhl

Building industry outlook

• C. Buhl

Geberit outlook

• C. Buhl

Summary

• C. Buhl

14

Strong organic growth in local currencies

15

+6.4% +1.2% +0.7%

Net sales FY 2016 2′809 M&A net (Sanitec / Koralle) +32 Currency effect +18 Organic growth in local currency +165 Net sales FY 2015 2′594

Total variance: CHF +215 million (+8.3%)

Sales development 2016 14 March 2017 15

Net sales, in CHF million

14 March 2017

Similar sales growth in first and second half of the year

Sales development 2016 16

718.6 12.9% 3.1% 761.2 13.5% 10.2% 1'479.8 13.2% 6.7% 692.6 4.1% 6.0% 636.6 2.5% 6.3% 1'329.2 3.3% 6.2% 2'809.0 8.3% 6.4%

Notes:

H2 12M

Sanitec: Absolute net sales include 12 months Sanitec; c.a., org. growth rate only 11 months (Feb - Dec) Koralle: Absolute net sales include 6 months Koralle (H1 2016); c.a., org. growth rate only 5 months (Feb - Jun)

Quarter Q1 Q2 H1 Q3 Q4 Net sales Variance to prior year CHF million % CHF % c.a., org.

14 March 2017

+6.8% Europe +0.2% America +4.3% Far East / Pacific +3.5% Middle East / Africa Positive sales development in all regions Net sales in CHF million and organic growth 2016 by region in % (curr. adj.)

Sales development 2016

+6.4% Total

17

93.6 2′570.1 67.9 77.4

Nordic Region 306 18.2% 11.1%

• Strong market growth in Sweden
• Good market growth in rest of region

14 March 2017

Sales growth in all European countries / regions (1/2)

Sales development 2016 18

Country / Region Net sales CHF million Variance to prior year Germany 861 7.9% 4.7%

• Limited market growth of around 2.5%

due to capacity constraints of installers Switzerland 281 1.9% 6.4%

• Market growth in H2 2016
• Positive one-time effect from Mera

backlog elimination Benelux 219 11.8% 7.9%

• Ongoing market recovery in Netherlands

leading to bottlenecks at installers % CHF % c.a., org. Central- / Eastern Europe 257 10.6% 10.4%

• Mixed picture of market environments

14 March 2017

Sales growth in all European countries / regions (2/2)

Sales development 2016 19

France 171 11.6% 4.8%

• Outperforming an improved building

construction sector UK / Ireland 123

• 2.3%

5.4%

• No impact from Brexit on sales in H2

2016 Iberian Peninsula 19 8.8% 6.5%

• Ongoing market recovery in Spain driven

by renovation sector Country / Region Variance to prior year % CHF Italy 186 7.7% 3.9%

• Only slightly growing construction

market in 2016 Austria 147 13.5% 12.3%

• Unexpected strong market upswing

driven by realization of delayed projects Net sales CHF million % c.a., org.

14 March 2017

Sales growth in all international regions

Sales development 2016 20

America 94 2.5% 0.2% Far East / Pacific 77 3.1% 4.3%

• Slowdown of recovery in residential

construction

• Stagnation of the institutional market

sector Middle East / Africa 68 0.9% 3.5%

• Stabilizing building construction sector

in China in H2 2016

• Growing construction market in India
• Declining construction market in the Gulf

region in 2016

• Growing market in South Africa

Country / Region Variance to prior year % CHF Net sales CHF million % c.a., org.

14 March 2017

All product areas growing

Sales development 2016 21

Net sales Variance to prior year TOTAL 2'809.0 8.3% 6.4% Sanitary Systems 1'263.5 10.3% 9.2% Installation Systems 789.9 9.1% 8.0% Cisterns and Mechanisms 254.7 15.1% 14.3% Faucets and Flushing Systems 123.4 4.7% 3.0% Waste Fittings and Traps 95.5 15.4% 14.3% Piping Systems 823.8 3.1% 2.5% Supply Systems 523.2 2.1% 1.4% Building Drainage Systems 300.6 5.1% 4.4% Sanitary Ceramics 721.7 11.2% 6.5% 1) Bathroom Ceramics 561.5 17.4% 8.3% Ceramics Complentary Products 160.2

• 6.2%

0.7%

Notes: Sanitec: Absolute net sales include 12 months Sanitec; c.a., org. growth rate only 11 months (Feb - Dec) Koralle: Absolute net sales include 6 months Koralle (H1 2016); c.a., org. growth rate only 5 months (Feb - Jun) 1) C.a. for 12 months Jan - Dec 2016: +4.9% excl. Koralle divestment effect but including Jan 2015 of Sanitec

CHF million % CHF % c.a., org. Product lines

14 March 2017

Agenda

Agenda

Review

• C. Buhl

Sales development

• C. Buhl

Financial Results

• R. Iff

Sanitec integration

• C. Buhl

Building industry outlook

• C. Buhl

Geberit outlook

• C. Buhl

Summary

• C. Buhl

22

14 March 2017

Key figures

Financial results 2016

• Contribution to net sales of

CHF 50 million from M&A and currency effect

• One-off adjustments mainly in

amortization of technology

• Majority of EUR 45 million

synergies captured per 2016

23

% YoY Net sales 2'809.0 2'593.7 8.3%

• Adj. EBITDA

794.9 693.5 14.6%

Margin 28.3% 26.7%

• Adj. EBIT

686.5 590.9 16.2%

Margin 24.4% 22.8%

• Adj. net income

584.0 493.1 18.4%

Margin 20.8% 19.0%

• Adj. EPS (CHF)

15.85 13.23 19.8% Free cashflow 563.9 484.0 16.5%

Margin 20.1% 18.7%

2016 2015 CHF million

14 March 2017

Income statement

Financial results 2016 24

Net sales 2'809.0 100.0% 2'593.7 100.0% 8.3% Cost of materials 774.9 27.6% 784.4 30.2%

• 1.2%

Personnel expenses 702.0 25.0% 671.6 25.9% 4.5% Depreciation 102.0 3.7% 95.9 3.7% 6.4% Amortization 43.1 1.5% 37.5 1.5% 14.9% Other operating expenses, net 546.9 19.4% 506.0 19.5% 8.1% Total operating expenses, net 2'168.9 77.2% 2'095.4 80.8% 3.5% Operating profit (EBIT) 640.1 22.8% 498.3 19.2% 28.5% EBITDA 785.2 28.0% 631.7 24.4% 24.3%

• Adj. EBITDA

794.9 28.3% 693.5 26.7% 14.6%

• Adj. operating profit (adj. EBIT)

686.5 24.4% 590.9 22.8% 16.2% 2016 2015 % YoY % % CHF million

14 March 2017 Financial results 2016

Adjusted EBITDA margin improvement of 160 bp

25

• Synergies from Sanitec integration
• Strong volume effect
• Positive net price effect
• Other cost: higher personnel cost due to tariff increases
• Adj. EBITDA

margin 2016 24.4% 2.3% M&A net (Sanitec / Koralle)

• 0.1%

Currency effect

• 0.1%

Price effects, net +1.8% Other cost 0.3% 26.7%

• Adj. EBITDA

margin 2015 +1.2% Volume and product mix effect

• 1.2%

28.0%

Adjustments / one-off Reported EBITDA margin

28.3%

Strong increase of metal raw materials spot prices during 2016

Index: January 2015 = 100, in dollar

50 60 70 80 90 100 110 120 130 140 150 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 2015 2016

January 13, 2017 26

FY 20161 Q4 20161 +10% +7%

• 7%
• 2%

+9% +6% +12% +3% +17% +14% +16%

• 1%

+77% +21% Copper ABS Nickel Zinc Aluminum Polyethylene Polystyrene

1) Percentage points increase within period

Financial results 2016

14 March 2017

One-off cost related to Sanitec acquisition

Financial results 2016 27

2016 CHF million Acquisition, divestment, integration and restructuring related cost Integration cost Restructuring costs One-off (gain) loss from divestment1) Total net cost on EBITDA level Amortization charges for intangibles3) Write-down of Koralle related assets Total cost on EBIT level Tax benefit Total cost on net income level 15

• (5)

10 34 2 46 10 36 2017 outlook CHF million 5 30-40 1 36-46 34

• 70-80

2) 1) 2016 Koralle and 2017 Varicor 2) Closure of the two French production plants is considered in the contemplated project for the sites. This project is submitted for information and consultation of Allia employee representative bodies. If this project would materialize the related cost could be in a range of CHF 30 million to CHF 40 million. However, depending on the outcome of the negotiations and the finally chosen option, the amount could also be below or above this range. 3) Related to purchase price allocation

14 March 2017

• Adj. net income and adj. EPS significantly above previous year’s level

Financial results 2016 28

640.1 22.8% 498.3 19.2% 28.5% Financial result, net

• 9.3
• 0.3%
• 23.5
• 0.9%
• 60.4%

Profit before income tax expenses 630.8 22.5% 474.8 18.3% 32.9% Income tax expenses 82.6 3.0% 52.4 2.0% 57.6% in % pretax profit 13.1% 11.0% Net income 548.2 19.5% 422.4 16.3% 29.8% EPS (CHF) 14.88 11.33 31.3%

• Adj. net income

584.0 20.8% 493.1 19.0% 18.4%

• Adj. EPS (CHF)

15.85 13.23 19.8% Operating profit (EBIT) 2016 2015 % YoY % % CHF million

14 March 2017

Strong free cashflow growth

Financial results 2016 29

785.2 631.7 24.3% Financial result, net

• 9.3
• 23.5

Income tax expenses

• 82.6
• 52.4

Changes in deferred taxes1) and current income tax liabil. and prov.

• 21.4
• 19.5

Changes in non-current provisions 32.0 23.9 Non-cash effective depreciation of inventories 0.0 28.4 Changes in other non-current assets and liabilities

• 4.9

7.7 Net cashflow 699.0 596.3 17.2% in % net sales 24.9% 23.0% Purchase of PP&E and intangible assets, net

• 132.9
• 141.0

Changes in net working capital 10.1 40.4 Payments charged to non-current provisions

• 12.3
• 11.7

Free cashflow 563.9 484.0 16.5% in % net sales 20.1% 18.7%

1) Only portion booked to the income statement

% YoY 2016 2015 CHF million EBITDA

14 March 2017

Significant reduction of net debt

Financial results 2016 30

CHF million Cash and cash equivalents 509.7 459.6 Net working capital 147.3 146.6 Property, plant and equipment 726.5 715.4 Deferred tax assets 96.7 95.7 Financial assets, other non-current assets and derivatives 26.3 25.3 Goodwill and intangible assets 1'681.1 1'757.1 Total assets 3'601.1 3'553.8 Debt 970.9 1'139.2 Accrued pension obligation 325.8 300.8 Deferred tax liabilities 89.7 128.0 Tax liabilities and tax provisions 120.0 108.5 Other non-current provisions and liabilities 46.0 41.0 Equity 1'635.2 1'482.2 Equity ratio 45.4% 41.7% Net debt 461.2 679.6 Gearing 28.2% 45.9% 31.12.2016 31.12.2015

14 March 2017

Proposed dividend increase of 19.0%

Financial results 2016 31

Net income Geberit AG 389'771 300'924 Balance brought forward 3'813 4'037 Withdrawal from free reserves

• 10'000

Total available earnings 393'584 314'961 Transfer to free reserves 20'000

• Proposed / paid dividend

370'415 1) 311'148 2) Balance to be carried forward 3'169 3'813 Total appropriation of available earnings 393'584 314'961

1) 2) Dividend of CHF 8.40 per share

2016 2015 CHF thousand

The Board of Directors proposes to the Geberit AG annual general meeting on 5 April 2017 a dividend of CHF 10.00 per share with dividend right. This corresponds to a payout ratio of 63.4%. The actual amount of shares with dividend rights may change prior to the annual general meeting

One-off impact on reporting 2017

Financial results 2016

• Net sales for Koralle only included for H1 2016 (CHF 23 million); organic growth

rates will be calculated excluding Koralle

• Varicor (CHF 10 million net sales in 2016) deconsolidated as of January 1st 2017;
• rganic growth rates will be calculated excluding Varicor
• Adjustment of results will include integration and restructuring costs and

amortization charges of intangibles

32 14 March 2017 32

14 March 2017

Agenda

Agenda

Review

• C. Buhl

Sales development

• C. Buhl

Financial Results

• R. Iff

Sanitec integration

• C. Buhl

Building industry outlook

• C. Buhl

Geberit outlook

• C. Buhl

Summary

• C. Buhl

33

34

Overall integration roadmap

January 13, 2017 34

2015

“Get the basics”

• Integration planning
• Organizational

design

• Clarity for people
• Sales system

integration

2016

“Go live as one company”

• One face to the

customers

• Harmonize

processes and tools

• Majority of

synergies captured

2017-19

“Capture the strategic benefits”

• Capture remaining

synergies

• Optimized business

processes

• Integrated innovative

products

Sanitec integration

Organization

• One single company since January 1st, 2016
• Functional organization – no divisions and matrices
• Exit of 10 locations

Status of Sanitec integration (1/2)

Sanitec integration 35 14 March 2017

IT-Systems

• Replacement of first ex-Sanitec ERP system as of January 1st, 2017
• IT infrastructure fully harmonized

Sales and marketing

• One customer oriented sales organization
• CRM systems and sales processing fully integrated

Products

• Insourcing of products largely completed, e.g., ceramics for shower

toilets and fill & flush valves

Operations

• Roll-out of Geberit production system (GPS)
• First improvement projects implemented

Status of Sanitec integration (2/2)

Sanitec integration 36 14 March 2017

Business portfolio

• Divestment of non-core businesses Koralle and Varicor –

limited synergies:  Made to measure products  Different customer focus Synergies

• Majority of total synergies of EUR 45 million captured as of 2016 –

ahead of plan

• Total integration costs of one-time synergies on track

14 March 2017

Agenda

Agenda

Review

• C. Buhl

Sales development

• C. Buhl

Financial Results

• R. Iff

Sanitec integration

• C. Buhl

Building industry outlook

• C. Buhl

Geberit outlook

• C. Buhl

Summary

• C. Buhl

37

Europe

38 Building industry outlook 14 March 2017 38

Favorable but mixed market environment

• Confident about Germany – bottleneck of installers limiting growth
• Only moderate growth in Switzerland
• Positive for Austria
• Slowdown of growth in Nordics –

substantial lower growth in Sweden

• Positive outlook for Benelux –

installers in NL becoming bottleneck

• Improvement of building construction sector in France
• No market growth in Italy
• Cautious for UK
• Mixed picture in Eastern Europe
• Recovery on Iberian Peninsula from low level

North America

39 Building industry outlook 14 March 2017 39

• Moderate growth of residential

construction

• Stagnation in institutional segment

 Healthcare declining  Education growing moderately Stagnation in institutional sector

Asia / Pacific

40 Building industry outlook 14 March 2017 40

• Stabilization of residential

construction sector in China

• India remains positive
• Market growth in Australia
• Mixed picture in South East Asia

Stabilization in China

Middle East / Africa

41 Building industry outlook 14 March 2017 41

• Ongoing weak construction

market in the Gulf region due to the low oil price

• Only sideways development of

construction sector in South Africa

• Continued political uncertainty in

Northern Africa / Near East Weak market in Gulf region

14 March 2017

Agenda

Agenda

Review

• C. Buhl

Sales development

• C. Buhl

Financial Results

• R. Iff

Sanitec integration

• C. Buhl

Building industry outlook

• C. Buhl

Geberit outlook

• C. Buhl

Summary

• C. Buhl

42

• Mid-level shower toilet with

 Compact design  Comfort functions  Numerous technical features, e.g. rimfree

• Two types: Complete (seat +

ceramic) and seat only

14 March 2017 43

New product introductions 2017 – Geberit AquaClean Tuma

Geberit outlook

• Electronic tap system with attractive,

slim and modern design

• Wall-mounted and deck-mounted tap

housing models in 2 different designs

• Easy installation due to benefits of

Geberit installation elements

• Easy and quick maintenance due to

easy accessible “smart hub”

14 March 2017 44

New product introductions 2017 – Wall-mount electronic tap system

Geberit outlook

• Comfort, cleanliness and usability

 Seamless, joint less and non-slip surface  Decentral drain instead of middle position  Easy-to-clean drain area where no dirt deposits can build up

• Safe and fast installation

 Pre-assembled installation elements  Click in feet with quick-lock  Integrated sealing foil

14 March 2017 45

New product introductions 2017 – Floor even shower tray Setaplano

Geberit outlook

• New supply piping press system
• For all common applications: drinking water, radiator

heating, underfloor heating

• Complete and price competitive system for European

expansion markets

• Multilayer, stable and corrosion-resistant metal pipes

– core coated with plastic on both sides

• For most common pressing tools
• Access to smaller and mid-sized installers

14 March 2017 46

New product introductions 2017 – Supply piping system Volex

Geberit outlook

• Versatile bathroom series

 Soft organic design  Slim-rim washbasin  Smart storage solutions  Modular furniture program

• Innovative technical features

 Concealed ceramic overflow  Easy and fast fixing

14 March 2017 47 Geberit outlook

New product introductions 2017 – Versatile bathroom series Acanto

• Shut-down of old part of factory
• Transfer of capacity to existing new part
• f factory with spare capacity
• Construction of new premises for

logistics, administration and technical department

• Total investments: EUR 6 million

14 March 2017

Renewal of site in Ukraine

48 Geberit outlook

Outlook Sanitec integration

2015

“Get the basics”

• Integration planning
• Organizational

design

• Clarity for people
• Sales system

integration

2016

“Go live as one company”

• One face to the

customers

• Harmonize

processes and tools

• Majority of

synergies captured

2017-19

“Capture the strategic benefits”

• Capture remaining

synergies

• Optimized business

processes

• Integrated innovative

products

Geberit outlook 49 14 March 2017

14 March 2017

Agenda

Agenda

Review

• C. Buhl

Sales development

• C. Buhl

Financial Results

• R. Iff

Sanitec integration

• C. Buhl

Building industry outlook

• C. Buhl

Geberit outlook

• C. Buhl

Summary

• C. Buhl

50

14 March 2017

Geberit with a successful year 2016

Summary

• Strong organic sales growth outperforming markets
• Further improved profitability
• Operating results on new record levels
• Sanitec integration on track – majority of synergies captured
• Successful new product introductions proving our innovation leadership
• Significant investments in operations and product pipeline

51

• Favorable but mixed construction market outlook
• Increasing raw material prices and personnel cost (labour tariffs)
• Fundamentals of Geberit remain very solid
• Further integration of Sanitec focusing on harmonization of systems and

business processes

• Strong cash generation enabling strong dividend pay-out and new share buy-

back program

52

Outlook

14 March 2017 52 Summary

14 March 2017

Important dates in 2017

• 05 April 2017
• General meeting
• 02 May 2017
• Interim report on the first quarter 2017
• Conference call
• 17 August 2017
• Interim report on the second quarter 2017
• Conference Call
• 31 October 2017
• Interim report on the third quarter 2017
• Conference call
• 11 April 2017
• Dividend payment

Summary 53

14 March 2017

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

• f the information provided in this handout and disclaim any liability for the use of it.

The statements in this presentation relating to matters that are not historical facts are forward-looking statements that are not guarantees of future performance and involve risks and uncertainties, including but not limited to: future global economic conditions, foreign exchange rates, regulatory rules, market conditions, the actions of competitors and other factors beyond the control of the company. All financial information included is audited except quarterly sales, analyses to impact of currencies, non-organic impact, one-off adjustments as well as the development of the EBITDA margin. Quarterly figures are prepared under the same recognition and measurement principles applied for the audited annual financial statements.

54