Analyst conference - geberit.com · Marketing expenditure, in CHF million. SLIDE 7 Sales &...

Analyst conference

Full year review 2017

Christian Buhl, CEO

Roland Iff, CFO

March 13, 2018

Agenda

Review C. Buhl

Sales development C. Buhl

Financial Results R. Iff

Sanitec integration C. Buhl

Building construction outlook C. Buhl

Geberit outlook C. Buhl

Summary C. Buhl

MARCH 13, 2018

ANALYST CONFERENCE - FY 2017

Key figures 2017

MARCH 13, 2018


Net sales growth

(in local currencies,

organic)

+3.5%

Adj. EBITDA margin

(-10 bp)

Adj. net income

growth

+3.5%

Adj. earning per share

growth

+3.7%28.2%

Free cashflow

developmentStart of share buy-back

program of maximum

CHF 450 million in June

2017

Dividend proposal

2017

Sanitec integration

-13.2%

(+4.0%)

CHF 10.40

• Major integration

tasks completed

• Synergies of EUR 45

million captured

Sales & marketing 2017 – 2nd year of integrated sales organisation

MARCH 13, 2018


Market activities 2017 – Example Germany

• Customer visits

“Push”: 7’500

“Technical pull”: 53’700

“Showroom pull”: 6’100

• 317 events with 23’800 customers

• 10’300 internal customers at trainings

• 199’000 technical customer service calls and 70’000

customer service emails

Geberit sales force

Wholesalers

Geberit

Push

“T

ec

hn

ica

l” P

ull

Installers / Planners

Showrooms / Architects / DIY/ /

General contractors / Investors

End consumers

“S

ho

wro

om

” P

ull

“E

nd

co

nsu

me

r“ P

ull

Sales & marketing 2017 – Key events in Germany

MARCH 13, 2018


“Geberit NeuheitenTreff”

• 30 "Geberit NeuheitenTreff" events with 7’400 customers in urban areas

• New concept for customers along entire value chain

• Presentation of new & combined product portfolio behind and in front of the

wall

“Geberit Drainage Competence”

• 68 "Geberit Drainage Competence" events with 2’200 customers in rural

areas

• Regional concept for installers & planers

• Focus on market launch Geberit Silent-Pro, wastewater competence &

system technology

Marketing 2017 – Expenditure

MARCH 13, 2018


• Continuous investments in customer

relations and brand reputation

• Marketing spend of 3.7% of net sales 2017

• 25% of total marketing spend for digital

tools and digital channels

98

8484

105

25%

2017

108

75%

2015 201620142013

Others

Digital

In % of net sales

4.2% 4.0% 3.8% 3.7% 3.7%

Marketing expenditure,

in CHF million

Sales & marketing 2017 – Key digital activities for professionals and end

consumers

MARCH 13, 2018


Building Information Modelling (BIM)

• Build-up of dedicated team responsible for completing and maintaining BIM data for

Geberit assortment

• Development of intelligent plug-ins for Autodesk BIM software, e.g., for planning of

Pluvia drainage system

Web-based inspiration tool for end consumers

• Support for inspiration phase

• Personal consulting via live-chat

• Lead generation and management

Web-based specification tool for planners, installers and architects

• Facilitation of specification process for small and large construction projects

• Selection, configuration and planning of country-specific and industry-specific

products

Innovation 2017 – R&D Expenditure

MARCH 13, 2018


• Increasing investments in innovation

pipeline

• R&D expenditure of 2.7% of net sales in

2017

• 32 patents filed in 2017

7872

6356

51

20142013

+8%

2015 2016 2017

In % of net sales

2.5% 2.7% 2.4% 2.6% 2.7%

R&D expenditure,

in CHF million

Tuma Comfort

Innovations 2017 – Successful product introductions

MARCH 13, 2018


Piave, Brenta Setaplano Volex Acanto

• Mid-level shower

toilet with comfort

functions

• Electronic tap

system with slim

& modern design

• Easy to clean

floor even

shower surface

“A compact all-

rounder”

“Easy installation

& maintenance"

“Safe & fast

installation"

• Supply piping

press system

“For European

expansion

markets"

• Versatile

bathroom series

“Innovative

technical

features"

CAPEX investments 2017

MARCH 13, 2018


• 2017 capital expenditures 14.3%

above previous year

• Increased spend for capacity

expansion

• Investments 2017 correspond to

5.5% of net sales

CAPEX,

in CHF million

147

10598

2013 2014 2015

159

2016

57%

34%

9%139

2017

Capacity expansion

New products

Modernization & rationalization

4.9% 5.0% 5.7% 5.0% 5.5%

In % of net sales

Investments 2017 – Key projects

MARCH 13, 2018


New logistics centre in Pfullendorf (DE)

• Finalisation of logistics capacity expansion

• New concept for long good storage

• Innovative technologies and further process innovations

• CAPEX: EUR 40 million (2015-2017)

Capacity expansion & efficiency increase of factory in Pfullendorf (DE)

• Additional new building for cistern production

• New blow moulding machines with payback of 3 years

• New further automated assembly line for concealed cisterns


“Lean processes” in Ekenäs (FI)

• Implementation of lean processes with various measures to optimise material flow from casting

to kiln

• 20% higher productivity

• CAPEX: EUR 1.7 million (2016, 2017)

Investments 2017 – Continuous improvement projects in our ceramics plants

MARCH 13, 2018


Modernisation of kiln in Wloclawek (PL)

• Upgraded shuttle kiln and kiln cars to reduce energy consumption by 5%

• Payback of 3.7 years

• CAPEX: EUR 1 million (2017)

New glazing lines in Wloclawek (PL)

• New automated glazing lines to increase efficiency

• Payback of 4.6 years

• CAPEX: EUR 0.7 million (2017)

Employees 2017– Slight increase due to volume growth in Sanitary Systems

MARCH 13, 2018


• 11’709 employees as of 2017

• Increase of 117 individuals, or 1.0% compared to the end of 2016

2%

4%8%

24%

62%

R&D

Apprentices

Administration

Sales &

Marketing

Production

Number of employees by business processes

2017

28%

39%

8%

2%

23%

America

Eastern Europe

Rest of

Western Europe

Germany

Asia / Africa

Number of employees by region

2017

Sustainability 2017 – Improvement of our environmental footprint

MARCH 13, 2018


The environmental impact is measured in impact points (UBP) according

to the Swiss impact assessment method of ecological scarcity (version 2013)

• Absolute energy consumption reduced by 4.2%

in 2017

• Environmental impact in relation to net sales

declined organically by 6.1% in 2017

• CO2 emissions in relation to net sales reduced

organically by 5.8% in 2017

• Environmental impact in relation to net sales

reduced by 45% since 2007

Environmental impact 2008-2017

-45%

1514

249

10 16

230

112008 13 201712

239

9

Environmental impact increase due to Sanitec

acquisition, in UBP billion

Environmental impact organic, in UBP billion

Environmental impact in relation to net sales

currency-adjusted, in % (Index: 2007 = 100)

Social responsibility 2017 – Social project with Geberit apprentices in Ukraine

MARCH 13, 2018


• Vocational school with 500 students in Odessa, Ukraine

• Renovation of the sanitary facilities as well as other

common/recreation rooms

• Geberit apprentices from Germany, Austria and Switzerland

working on site

Agenda

Review C. Buhl






Summary C. Buhl

MARCH 13, 2018


Sales 2017 – Organic growth in local currencies of 3.5%

MARCH 13, 2018


Total variance: + CHF 99 million (+ 3.5%)

97

34 32

Net sales

FY 2017

Divestment

(Koralle / Varicor)

2′908

Net sales

FY 2016

Currency

effect

2′809

Organic growth

in local currency

+ 3.5% - 1.2%+ 1.2%

Net sales, in CHF million

Sales 2017 – Negative one-time effects in Q2 and Q3

MARCH 13, 2018


Notes: Variance to prior year in % CHF includes 6 months of sales from Koralle and 12 months from Varicor – neither Koralle nor Varicor contributed to sales in 2017

QuarterNet sales Variance to prior year

CommentCHF million % CHF % c.a., org.

Q1 737.1 2.6% 6.7% • More working days

Q2 732.2 -3.8% -0.8%• 3 working days less

• Mera base effect of CHF 4 million

Q3 733.0 5.8% 3.3%• 1 working day less

• Mera base effect of CHF 8 million

Q4 706.0 10.9% 5.3% • Pre-buying effect in Switzerland

Full year 2'908.3 3.5% 3.5% • Mera base effect of CHF 12 million

+

–

–

–

–

–

+

Sales 2017 – Positive development in all regions

MARCH 13, 2018


+2.9%

Europe

(90.9% of net sales)

+3.6%

America

(3.3% of net sales)

+13.3%

Far East / Pacific

(3.0% of net sales)

+16.8%

Middle East / Africa

(2.8% of net sales)

Net sales in CHF million and organic growth 2017 by region in % (c.a.)

+3.5%

Total

Nordic Region 313.7• Strong previous year growth

• Slowdown of market growth in Sweden and Norway

Sales 2017 – Development in European countries / regions (1/2)

MARCH 13, 2018


Country / RegionNet sales

CHF million

Variance to prior

year

Germany 867.3 0.7%• Limited growth due to capacity constraints of sanitary

installers

Switzerland 278.6

• Slightly growing market environment

• Outperformance driven by upselling strategy and

innovations

Benelux 231.6• Ongoing market recovery in Netherlands

• Positive sales growth in Netherlands and Belgium

% CHF % c.a., org.

Central / Eastern

Europe280.1

• Mixed picture of market environments

• Sales growth in all key markets

• Double digit growth of Installation Systems

2.4% 1.2%

9.0% 6.7%

-0.8% 3.7%

5.8% 4.0%

Notes: Prior year comparison in CHF includes 6 months of sales from Koralle and 12 months from Varicor – neither Koralle nor Varicor contributed to sales in 2017

0.7%

Comment

MARCH 13, 2018


270 284308

375343

215245 248

278310

2015 2016 2017120142013

382 404 445516

2014 20152013 2016

Construction backlog, in 1’000 dwellings

2016

13.4

2015

11.3

Construction time, in months

Single dwelling unit

20162015

16.512.4

Multiple dwelling unit

Market environment Germany – Demand higher than capacities

1 Planning permissions: Extrapolated 11 months numbers; Construction completions: Estimates Ifo Institute

Source: Statistisches Bundesamt

Construction completions, in 1’000 dwellings

Planning permissions, in 1’000 dwellings

Market environment Germany – Increased bottleneck of sanitary installers

MARCH 13, 2018


Vacancy time of open installer1 jobs in Germany

Source: Bundesagentur für Arbeit

156 days

2015 2017

142 days

2016

129 days

• 54% of all sanitary

installer companies

with open positions

in 2017 (2016: 46%)

• New record level of

installer order book

of 10.6 weeks per

end of 2017 –

increase of 14% vs.

2016

1 Plumbing, Heating, Air Conditioning

Construction

Specialist 2017

(130 days)

All jobs in

Germany 2017

(100 days)

Nordic Region 313.7• Strong previous year growth

• Slowdown of market growth in Sweden and Norway


MARCH 13, 2018



CHF million

Variance to prior

year

Germany 867.3 0.7%• Limited growth due to capacity constraints of sanitary

installers

Switzerland 278.6

• Slightly growing market environment

• Outperformance driven by upselling strategy, innovations

and pre-buying effects

Benelux 231.6• Ongoing market recovery in Netherlands

• Positive sales growth in Netherlands and Belgium

% CHF % c.a., org.

Central / Eastern

Europe280.1

• Mixed picture of market environments

• Sales growth in all key markets


2.4% 1.2%

9.0% 6.7%

-0.8% 3.7%

5.8% 4.0%


0.7%

Comment


MARCH 13, 2018


France 176.3• Recovering market environment


UK / Ireland 110.5• Declining market due to weak non-residential sector

• Geberit with dis-proportional exposure to non-residential

Iberian Peninsula 21.4• Ongoing market recovery in Spain

• Double digit sales growth in Spain and Portugal

Italy 201.2• Strong market outperformance due to dedicated sales &

marketing initiative

Austria 161.2

• Strong market growth

• Market outperformance despite already high market

shares

8.3% 6.6%

3.3% 3.9%

9.4% 9.0%

-10.4% -5.6%

13.8% 11.9%


CHF million

Variance to prior

year

% CHF % c.a., org.


Comment

Sales 2017 – Development in international regions

MARCH 13, 2018


America

Far East / Pacific

• Stagnation of the institutional market sector

• Further improved profitability of Chicago Faucet

Company

Middle East /

Africa

• Moderate growth of residential construction sector in

China in H2 2017

• Double digit sales growth in China, India and in Australia

• Stabilisation of overall construction market in the Gulf

region

• Double digit sales growth in all key markets of Geberit

3.4% 3.6%96.7

13.5% 13.3%87.8

20.6% 16.8%81.9


CHF million

Variance to prior

year

% CHF % c.a., org.


Comment

Sales 2017 – Development by product line

MARCH 13, 2018


Product area / lineNet sales Variance to prior year

CommentCHF million % CHF % c.a., org.

TOTAL 2'908.3 3.5% 3.5%

Sanitary Systems 1'361.5 7.8% 6.6% • Strong growth of Installation Systems driven by

synergies with Sanitary Ceramics

• Negative base effect from Mera backlog elimination in

2016

• Double digit growth of Waste Fittings and Traps driven

by new product introductions

Installation Systems 871.3 10.3% 8.9%

Cisterns and Mechanisms 252.5 -0.9% -1.7%

Faucets and Flushing Systems 129.2 4.6% 4.3%

Waste Fittings and Traps 108.5 13.7% 12.4%

Piping Systems 865.5 5.1% 3.8%• Strong growth of drainage piping systems driven by

upselling and new product introductionsSupply Systems 535.6 2.4% 1.0%

Building Drainage Systems 329.9 9.8% 8.6%

Sanitary Ceramics 681.3 -5.6% -2.3% • Negatively affected by closure of two ceramic plants in

France

• Weaker market environment in Nordic RegionBathroom Ceramics 546.8 -3.2% -2.1%

Ceramics Complementary Products 134.5 -14.1% -3.2%


Agenda

Review C. Buhl






Summary C. Buhl

MARCH 13, 2018


Key figures 2017

MARCH 13, 2018


• Currency adjusted organic net sales growth of

3.5%

• One-off adjustments mainly in restructuring cost

and amortisation of ceramics technology

• Synergies of EUR 45 million fully captured in 2017

CHF million 2017 2016 % YoY

Net sales 2'908.3 2'809.0 3.5%

Adj. EBITDA 820.7 794.9 3.2%

Margin 28.2% 28.3%

Adj. EBIT 706.1 686.5 2.9%

Margin 24.3% 24.4%

Adj. net income 604.2 584.0 3.5%

Margin 20.8% 20.8%

Adj. EPS (CHF) 16.43 15.85 3.7%

Free cashflow 483.4 556.6 -13.2%

Margin 16.6% 19.8%

Income statement 2017

MARCH 13, 2018


CHF million 2017 % 2016 % % YoY

Net sales 2'908.3 100.0% 2'809.0 100.0% 3.5%

Cost of materials 829.8 28.5% 774.9 27.6% 7.1%

Personnel expenses 746.8 25.7% 702.0 25.0% 6.4%

Depreciation 105.7 3.6% 102.0 3.6% 3.6%

Amortisation 44.6 1.5% 43.1 1.5% 3.5%

Other operating expenses, net 559.7 19.3% 546.9 19.5% 2.3%

Total operating expenses, net 2'286.6 78.6% 2'168.9 77.2% 5.4%

Operating profit (EBIT) 621.7 21.4% 640.1 22.8% -2.9%

EBITDA 772.0 26.5% 785.2 28.0% -1.7%

Adj. EBITDA 820.7 28.2% 794.9 28.3% 3.2%

Adj. operating profit (adj. EBIT) 706.1 24.3% 686.5 24.4% 2.9%

FY 2017 – Solid results

MARCH 13, 2018


• Positive impact from volume and product mix effect

• Higher raw-material prices leading to negative net price effect

• Tarif increases and higher expense for marketing lead to negative other cost effect

• CHF 45 million one-off restructuring cost from closure of two ceramic production plants in France

1.7%

0.3%

Other cost

effects

+ 1.3%

M&A net

(Koralle / Varicor)

Adj. EBITDA

margin FY 2016

28.2%+ 0.1%

Currency effectVolume and

product mix effect

26.5%

28.0%

-

- 0.9%

28.3% - 0.6%

Price effects,

net

Adj. EBITDA

margin FY 2017

Adjustments / one-off

Reported EBITDA margin

One-off cost related to Sanitec acquisition 2017

MARCH 13, 2018


One off & recurring cost from acquisition /

deconsolidation

Integration cost

Restructuring costs1

One-off (gain) / loss from divestment2

Total cost on EBITDA level

Depreciation and amortisation

Total cost on EBIT level

Tax effect

Total cost on net income level

2017

CHF million

1 Costs related to closure of two French ceramics production plants

2 Varicor transaction

3

45

1

49

35

84

-7

77

Adj. net income and adj. EPS 2017 – Slightly above prior year’s level

MARCH 13, 2018


CHF million 2017 % 2016 % % YoY

Operating profit (EBIT) 621.7 21.4% 640.1 22.8% -2.9%

Financial result, net -9.4 -0.3% -9.3 -0.3% -1.1%

Profit before income tax expenses 612.3 21.1% 630.8 22.5% -2.9%

Income tax expenses 84.9 2.9% 82.6 3.0% 2.8%

in % pre-tax profit 13.9% 13.1%

Net income 527.4 18.1% 548.2 19.5% -3.8%

EPS (CHF) 14.34 14.88 -3.6%

Adj. net income 604.2 20.8% 584.0 20.8% 3.5%

Adj. EPS (CHF) 16.43 15.85 3.7%

Free cashflow 2017 – Negative impact from investments and NWC

MARCH 13, 2018


CHF million 2017 2016 % YoY

EBITDA 772.0 785.2 -1.7%

Financial result, net -9.4 -9.3

Income tax expenses -84.9 -82.6

Changes in deferred taxes1 and current income tax liabilities and provisions -41.2 -21.4

Changes in non-current provisions 71.5 33.2

Changes in other non-current assets and liabilities 0.0 -4.9

Net cashflow 708.0 700.2 1.1%

in % net sales 24.3% 24.9%

Purchase of PP&E and intangible assets, net -155.5 -132.9

Changes in net working capital -36.1 10.1

Payments charged to non-current provisions -33.0 -20.8

Free cashflow 483.4 556.6 -13.2%

in % net sales 16.6% 19.8%

1 Only portion booked to the income statement

Balance sheet 2017 – FX impact increased all balance sheet positions

MARCH 13, 2018


CHF million 31.12.2017 31.12.2016

Cash and cash equivalents 412.7 509.7

Net working capital 173.0 147.3

Property, plant and equipment 812.8 726.5

Deferred tax assets 96.1 96.7

Other non-current assets and non-current financial assets 35.0 26.1

Goodwill and intangible assets 1'748.9 1'681.1

Total assets 3'742.8 3'601.1

Debt 895.2 970.9

Accrued pension obligations 309.2 325.8

Deferred tax liabilities 76.5 89.7

Tax liabilities and tax provisions 101.8 120.0

Other non-current provisions and nun-current liabilities 57.7 46.0

Equity 1'837.2 1'635.2

Equity ratio 49.1% 45.4%

Net debt 482.5 461.2

Gearing 26.3% 28.2%

Dividend – Proposed increase of 4.0%

MARCH 13, 2018


CHF thousand 2017 2016

Net income Geberit AG 501'972 389'771

Balance brought forward 3'169 3'813

Withdrawal from free reserves - -

Total available earnings 505'141 393'584

Transfer to free reserves 120'000 20'000

Proposed / paid dividend 383'0961 370'4152

Balance to be carried forward 2'045 3'169

Total appropriation of available earnings 505'141 393'584

1 The Board of Directors proposes to the Geberit AG annual general meeting on April 4, 2018 a dividend of CHF 10.40 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.

2 Dividend of CHF 10.00 per share

Agenda

Review C. Buhl






Summary C. Buhl

MARCH 13, 2018


Sanitec integration – Integration roadmap successfully executed

MARCH 13, 2018


2015

“Get the basics”

• Integration planning

• Organisational 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

• Optimised business processes

• Combined product innovations

• Major integration tasks

completed as of 2017

• All synergies of EUR 45

million captured – ahead of

plan

• Total integration costs of

CHF 45 million

• Further solidification and

improvement of combined

business required, e.g.,

- ERP systems

- Combined products

- Cultural integration

Integration roadmap

Organisation

• One single company since 2016 with a functional organisation – no divisions and matrices

• Exit of 10 sales and corporate locations

• Alignment of legal structure and elimination of > 20 legal entities

Sanitec integration – Major integration tasks completed (1/2)

MARCH 13, 2018


IT-Systems• Replacement of first ex-Sanitec ERP system as of January 1, 2017 – further roll-out plan defined

• IT infrastructure fully harmonized

Sales and

marketing

• One customer oriented sales organisation with new “showroom pull”

• CRM systems and sales processing fully integrated

• Evolutionary development and roll-out of CI/CD

Products

• Insourcing of products largely completed, e.g., ceramics for shower toilets and fill & flush valves

• Further streamlining of ceramics portfolio

• Geberit branded ceramics launched in selective markets

Operations

• Two ceramics production plants closed in France

• Roll-out of Geberit production system (GPS)

• First improvement projects implemented

Sanitec integration – Major integration tasks completed (2/2)

MARCH 13, 2018


Business

portfolio• Divestment or closure of all non-core businesses with limited synergies due to different customer focus

and/or made to measure products (e.g., Koralle, Varicor)

Synergies• Total synergies of EUR 45 million captured as of 2017 – ahead of plan

• Total integration costs of CHF 45 million according to plan

Agenda

Review C. Buhl






Summary C. Buhl

MARCH 13, 2018


Building construction outlook – Europe

MARCH 13, 2018


Overall favourable but mixed construction market environment

• Confident about demand in Germany – bottleneck of qualified sanitary installers continues to limit growth

• Stable market on high level in Switzerland

• Growing market in Austria but at slower pace

• Mixed picture in Nordic Region – positive for Denmark and Finland, cool down in Sweden and Norway

• Positive outlook for Benelux – ongoing recovery in NL leads to shortages of sanitary installers

• Growing construction market in France

• Slightly improving environment in Italy

• Robust residential sector but declining non-residential sector in UK

• Mixed picture in Eastern Europe

• Recovery on Iberian Peninsula from low level

Building construction outlook – North America

MARCH 13, 2018


• Moderate improvement of construction in the

healthcare and educational sector

• Further growth of residential construction sector

Moderate improvement of institutional sector

Building construction outlook – Asia Pacific

MARCH 13, 2018


• Moderate increase of the residential construction market in China

• Cautious for the residential sector in India due to new regulations

and policies introduced last year

• Stagnation of the building construction market in Australia

• Mixed picture in South East Asia

Mixed picture across the region

Building construction outlook – Middle East / Africa

MARCH 13, 2018


• Improving construction market in the Gulf

region

• Stagnating building construction market

environment in South Africa

• Mixed picture in Northern Africa / Near East

Improving construction market in Gulf region

Agenda

Review C. Buhl






Summary C. Buhl

MARCH 13, 2018


New product introductions 2018 – Geberit AquaClean Tuma Classic

MARCH 13, 2018


• Entry-level shower toilet with

Compact design

Rimfree ® WC ceramic – easy to clean

Unlimited warm water comfort

Established WhirlSpray shower technology

• Two variants: Complete solution (seat + ceramic) or seat only

New product introductions 2018 – Washbasins VariForm

MARCH 13, 2018


• Comprehensive portfolio of countertop washbasins

• Four geometric shapes: round, oval, elliptic and square

• Universal and timeless design with particularly slim rims

• Replacement of many local ranges by one group range

New product introductions 2018 – New basic fill valve Type 333

MARCH 13, 2018


• New basic fill valve for flushing cisterns

• Fits to Geberit and OEM flushing systems

• Low noise level

• Dirt and chemical substances resistant

New product introductions 2018 – Geberit sanitary flush Rapid

MARCH 13, 2018


• Automated flushing system for supply piping systems

• Helps to avoid hygiene risks

• Compact design for pre-wall installation, battery-driven

• Fast installation when hygiene is acutely at risk

New product introductions 2018 – Geberit energy retaining valve ERV

MARCH 13, 2018


• Energy saving valve on top of drainage stack

• Saves up to 50l of heating oil per year and drainage stack

• Maintenance-free with insect screen and frost resistance

• Odour stop on the roofs used as a terrace

Investments 2018 – Capacity expansion and renewals

MARCH 13, 2018


Building extension in Ozorkow (PL)

• New factory building for metal fittings production

• Start of production in 2019


Complete renewal of production site in Langenfeld (DE)

• Complete renewal of the production site for metal piping systems

• 2 new buildings: Production hall (15’400m2) and admin building (5’500m2)

• Start of production as of 2019


Investments 2018 – Capacity expansion and renewals

MARCH 13, 2018


Capacity and efficiency increase in

Lichtenstein (DE)

• Additional automated welding line for

Installation systems

• Optimisation of existing capacity by

improved processes

• Payback of 2 years

• CAPEX: EUR 5 million for capacity

and efficiency (2017-2018)

Marketing & Brands outlook 2018

MARCH 13, 2018


New Geberit AquaClean shower toilet campaign

• New flexible B2C marketing campaign “my confidence”

• More focus on product and benefits

• Educative, provocative and lifestyle oriented

• Roll-out in all European campaign markets including Sweden

Brand portfolio simplification

• Phase-out of 4 ceramic brands (Keramag, Sphinx, Allia, Pozzi-

Ginori) and replacement with Geberit brand, starting in 2019

• Key benefits:

Improved customer support

Simplified cross- and upselling

Reduced complexity in operations and logistics

More capacity for development of new products

Reporting outlook 2018

• No more integration and restructuring cost on EBITDA level

• 2018 will be the last year with adjustments for amortisation charges for intangibles of about CHF 36 million

• Due to the completed Sanitec integration, sales reporting will be shown as of 2018 by three newly organised

product areas:

MARCH 13, 2018


Installation Systems

Installation & Flushing Systems

Cisterns & Mechanisms Supply Systems

Building Drainage Systems

Piping Systems

Taps & ControlShowers & Bathtubs

Bathroom Ceramics &

Furniture

Bathroom Systems

Shower Toilets

Agenda

Review C. Buhl






Summary C. Buhl

MARCH 13, 2018


Summary – Geberit with a successful year 2017

• Solid organic sales growth

• Strong sales growth of Installation Systems due to synergies with ceramics business

• Stable profitability despite substantially higher raw material prices

• Operating results on new record levels

• Sanitec integration completed – synergies captured earlier than initially planned

• Successful new product introductions proving our innovation leadership

• Increased investments in operations, product pipeline and customer relations for future value creation

MARCH 13, 2018


Summary – Outlook

• Favourable but mixed construction market outlook

• Increasing raw material prices and personnel cost (labour tariffs)

• Fundamentals of Geberit remain very solid

• Uniquely positioned in Europe with sustainable organic growth perspectives

• Further solidification and improvement of combined business behind and in front of the wall

• Strong cash generation enabling attractive dividend pay-out combined with share buy-back programs

MARCH 13, 2018


Important dates in 2018

MARCH 13, 2018


• April 4, 2018 • Annual meeting

• May 3, 2018 • Interim report on the first quarter 2018

• Conference call

• August 14, 2018 • Interim report on the second quarter 2018

• Conference Call

• October 30, 2018 • Interim report on the third quarter 2018

• Conference call

• April 10, 2018 • Dividend payment

Disclaimer

MARCH 13, 2018


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 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.

Analyst conference - geberit.com · Marketing expenditure, in CHF million. SLIDE 7 Sales &...

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