GROWTH OF 14.1% - NEW RECORDS IN SALES AND PROFIT FIRST NINE MONTHS 2018 SIKA INVESTOR PRESENTATION NOVEMBER 2018
1. HIGHLIGHTS FIRST NINE MONTHS 2018
GROWTH OF 14.1% - NEW RECORDS IN SALES AND PROFIT CONTINUING HIGH OPERATING SPEED 1. New records in sales, EBIT and net profit +14.1% sales growth in local currencies (15.0% in CHF) to CHF 5,322.7 million +9.0% higher EBIT to CHF 728.9 million (excluding one-off costs incurred in connection with the resolution of dispute with Saint-Gobain, EBIT would have risen by 12.4%) Double-digit increase in net profit of 10.5% to CHF 527.7 million 2. Continuing high operating speed – key investments New national subsidiary in Honduras New plants in Vietnam, Senegal, Saudi Arabia, Azerbaijan, Dubai, Mexico, and Peru Closing of 4 acquisitions: Faist ChemTec, Index, Polypag, and Fibermesh Concrete Fibers 3. Outlook and Strategy Strategic targets for 2020 unchanged Outlook 2018: Confirmation of sales target of more than CHF 7 billion – double-digit growth in both EBIT and net profit 3
KEY FIGURES FIRST NINE MONTHS 2018 RECORD RESULTS – STRONG TOP LINE MOMENTUM CONTINUES 2017 2018 Δ % in CHF mn Net sales 4,627.5 5,322.7 +15.0% Gross results as % of net sales 54.7 53.3 EBITDA 797.9 880.0 +10.3% EBIT 669.0 728.9 +9.0% Net profit 477.4 527.7 +10.5% 4
14.1% SALES GROWTH IN THE FIRST NINE MONTHS 2018 SIKA WELL ON TRACK 18% 14.1% 16% 14% 12% 7.1% 7.9% 10% 6.3% 8% 2.4% 1.1% in LC 6% acquisition 4% 7.0% organic 5.5% 5.2% 2% 0% 9M 2016 9M 2017 9M 2018 9M 2016 9M 2017 9M 2018 in CHF mn Net sales 4,331.8 4,627.5 5,322.7 5
SALES FIRST NINE MONTHS 2018 GROWTH IN ALL REGIONS +18.0% +9.6% +5.0% +32.1% Growth in CHF +14.4% +13.0% +4.8% +29.9% Growth in LC +3.6% -3.4% +0.2% +2.2% FX impact +7.2% +5.0% +0.0% +22.7% Acquisition 23% 77% Construction Industry EMEA Americas Asia/Pacific Global Business 6
STRONG GROWTH MOMENTUM CONTINUES IN FIRST NINE MONTH 14.1% SALES GROWTH (15.0% IN CHF) + 14.4% + 4.8% + 29.9% + 13.0% 852 687 1,383 Asia/Pacific Global Business 2,400 Americas EMEA 9M 2017 9M 2018 (in CHF mn, growth in LC) 7
DEVELOPMENT OF SALES FIRST NINE MONTHS STRONG GROWTH IN MATURE AND EMERGING MARKETS in CHF mn 5’400 43 5’200 328 5’000 187 4’800 5,323 137 4’600 4,628 4’400 4’200 9M 2017 Organic Growth Organic Growth Acquisitions Translation 9M 2018 Mature Market Emerging Impact Market 8
CONTINUING HIGH OPERATING SPEED IN 2018 CLOSING OF 4 ACQUISITIONS Company Country Target Market Faist ChemTec Global Global Business Index Construction Systems and Italy Roofing & Waterproofing Products Polypag Switzerland Sealing & Bonding Fibermesh Concrete Fibers Global Concrete Total annual sales: CHF 375 million Faist ChemTec Index Construction Systems and Products Fibermesh Concrete Fibers 9
CONTINUING HIGH OPERATING SPEED IN 2018 EXPANSION IN EMERGING MARKETS New subsidiaries: Honduras (February 2018) Now present in 101 countries with own national subsidiaries 10
CONTINUING HIGH OPERATING SPEED IN 2018 INVESTMENTS IN NEW PLANTS Opening of Sika plants: New mortar plant Vietnam (Hanoi, March 2018) 1 st admixture plant Senegal (Dakar, April 2018) New admixture factory Saudi Arabia (Dammam, June 2018) New admixture and mortar plant Azerbaijan (Baku, Juily 2018) Mortar and admixture factory United Arab Emirates (Dubai, August 2018) Automotive plant Mexico (Querétaro, September 2018) 2 new admixture plants Kazakhstan (Almaty and Astana, October 2018) New admixture plant Russia (Yekaterinburg, October 2018) Admixture, mortar and liquid applied membrane (Lima, November 2018) plant in Peru New factory in Dubai New plant in Peru 11
2. SUCCESSFUL STRATEGY EXECUTION
SIKA’S GROWTH MODEL DELIVERS KEY INVESTMENTS SINCE 2015 - Successful Target Market concept Market Penetration - Megatrends driving growth - 217 new patents filed Innovation - 20 Global Technology Centers - 36 new plants opened Emerging Markets - 11 new national subsidiaries - 19 acquisitions in all regions Acquisitions - CHF 775 million sales added - Strong corporate culture Values - High employee loyalty 13
SIKA’S GROWTH MODEL DELIVERS CONTINUED GROWTH IN SALES AND PROFIT (FULL YEAR) NET SALES EBIT NET SALES 1100 16.0% 13.8% 14.3% 7000 16.0% % growth in local currencies as % of net sales 1000 14.0% 12.3% 14.0% 900 6500 5.5% 9.0% 13.0% 6.2% 5.3% 9.4% 11.4% 12.0% 800 12.0% 10.2% 6000 700 9.0% 10.0% 10.0% 600 7.6% 5500 8.0% 8.0% 500 5000 400 6.0% 6.0% 300 4500 4.0% 4.0% 200 4000 2.0% 100 2.0% 2011 2012 2013 2014 2015 2016 2017 2011 2012 2013 2014 2015 2016 2017 14
SIKA’S GROWTH MODEL DELIVERS CONTINUED INCREASE IN ROCE (FULL YEAR) RETURN ON CAPITAL EMPLOYED (ROCE) in % * 29.8% 28.7% 24.3% 23.3% 21.0% 18.5% 15.6% 2011 2012 2013 2014 2015 2016 2017 15
MARKET PENETRATION
SIKA’S MARKET POTENTIAL LARGE AND GROWING MARKET SEGMENTS TOTAL MARKET SIZE 2020 2017 CHF 80 BILLION > CHF 70 BILLION INDUSTRY CONCRETE CONCRETE INDUSTRY WATER- FLOORING PROOFING WATER- FLOORING PROOFING ROOFING SEALING & ROOFING SEALING & BONDING BONDING REFURBISHMENT REFURBISHMENT 17
MEGATRENDS DRIVE OUR GROWTH URBANIZATION, NEW VEHICLE DESIGN AND SUSTAINABILITY Rising demand for high- New modular vehicle Increased safety, fire, performance concrete, manufacturing concepts water, earthquake and sealing and need fast, high-strength quality requirements waterproofing bonding systems Sustainability: Lightweight vehicle Increasing world Higher demand Increasing demand construction with population with for infrastructure for safe-to-use and multi-material urbanization and refurbishment low-emission design requires and megacities solutions products bonding solutions 18
MARKET PENETRATION - FOCUS ON ATTRACTIVE MARKETS: CROSS-SELLING, LIFE-CYCLE MANAGEMENT, A STRONG BRAND Concrete Waterproofing Roofing Flooring & Coating Refurbishment Industry Sealing & Bonding 19
GROWTH MODEL WITH EARLY MARKET PENETRATION FROM NEW-BUILD TO REFURBISHMENT Long-term SIKA HAS SOLUTIONS FOR ALL MARKETS market potential Sika Repair and Sika’s market potential refurbishment Higher building standards Infrastructure Emerging markets Developing markets Mature markets 20
INNOVATION
INNOVATION STRONG TRACK RECORD More than 217 900 283 20 patents were employees are invention Technology filed since dedicated to disclosures Centers 2015 Research and since 2015 worldwide Development 22
ACCELERATED BUILD-UP OF EMERGING MARKETS
EMERGING MARKETS BUILD-UP SINCE 2015 CAPTURING GROWTH POTENTIAL IN NEW MARKETS 36 11 36% 5 new acquisitions new of sales in plants national emerging markets opened subsidiaries 24
SIKA’S 101 SUBSIDIARIES 25
ACQUISITIONS
ACQUISITIONS SINCE 2015 GROWTH PLATFORMS FOR THE FUTURE In all In all 19 acquisitions 775 7 4 million CHF Target regions additional Markets turnover 27
SIKA WILL ACT AS MARKET CONSOLIDATOR FRAGMENTATION OFFERS ACQUISITION OPPORTUNITIES CONSTRUCTION CHEMICAL MARKET 2017 > CHF 60 BILLION Sika Top 10 companies with a combined market share of 40% Other 28
VALUES AND PRINCIPLES
SIKA’S VALUES AND PRINCIPLES STRONG CORPORATE CULTURE Customer first Courage for innovation Sustainability & integrity Empowerment and respect Manage for results 30
3. TARGETS 2020
SIKA’S GROWTH STRATEGY 2020 CONFIRMED TO BE UPDATED IN 2019 MARKET PENETRATION 6 - 8% ANNUAL GROWTH 30 NEW PLANTS INNOVATION 105 NATIONAL SUBSIDIARIES EMERGING MARKETS 14 - 16% EBIT MARGIN PER YEAR ACQUISITIONS > 10% OPERATING FREE CASH FLOW PER YEAR VALUES > 25% ROCE PER YEAR 32
4. OUTLOOK 2018
HIGHER RAW MATERIAL COSTS PRESSURE ON MARGINS COUNTERED WITH HIGHER SALES PRICES Gross 56.0% 1.06 Margin 55.0% 1.04 54.0% 1.02 Raw 53.0% 1 Material Prices 52.0% 0.98 51.0% 0.96 Sales Price Increases 50.0% 0.94 2016 2017 2018* Increasing raw material prices in several phases since end of 2016 Consequent execution of sales price adaptations Dilution impact on material margin from acquisitions *year to date at 9 months 34
STRONG OUTLOOK FOR 2018 CONTINUATION OF SUCCESSFUL GROWTH STRATEGY Confirmation of sales target of more than CHF 7 billion Volatile and rising raw material prices will continue to be a challenge Double-digit growth in both EBIT and net profit 35
THANK YOU FOR YOUR ATTENTION
Recommend
More recommend
