Sika Half-Year 2022 Performance

Made public by

sourced by PitchSend

27 of 33

Creator

Sika Group logo
Sika Group

Category

Real Estate

Published

2022

Slides

Transcriptions

#1OUR FIRST HALF-YEAR 2022 RECORDS IN SALES, EBIT, AND PROFIT SIKA INVESTOR PRESENTATION SEPTEMBER 2022 BUILDING TRUST Jika Ⓡ#21. OUR FIRST HALF-YEAR 2022 - RECORDS IN SALES, EBIT, AND PROFIT 2. SIKA'S GROWTH DRIVERS 3. UPDATE ON MBCC ACQUISITION 4. OUTLOOK Jika Ⓡ BUILDING TRUST#31. OUR FIRST HALF-YEAR 2022 – RECORDS IN SALES, EBIT, AND PROFIT - BUILDING TRUST Jika Ⓡ#4RECORD RESULTS IN THE FIRST HALF OF 2022 GROWTH IN LOCAL CURRENCIES OF 19.5% - EBIT GROWTH OF 22.7% 1. Sales and profit Sales growth of 19.5% in local currencies. Record sales of CHF 5,250.3 million (+18.0% in CHF). Record operating profit (EBIT) at CHF 841.9 million (+22.7%), including profit from divestment of European industrial coatings business plus expenses in connection with acquisition of MBCC Group. EBIT margin at 16.0% 2. Key investments Two acquisitions: Sable Marco (Canada) and United Gilsonite Laboratories "UGL" (USA) Four new plants opened: Tanzania, Ivory Coast, Bolivia, and USA 3. Outlook and strategy Growth in local currencies by well over 10%, surpassing CHF 10 billion for the first time Over-proportional increase in EBIT expected Confirmation of 2023 strategic targets for sustainable, profitable growth 4 Closing of MBCC acquisition is targeted for the first half of 2023 BUILDING TRUST Jika ®#5HIGHLIGHTS IN 2022 ACQUISITIONS & DIVESTMENTS Acquisition of Sable Marco, Canada (March 2022) Closing of transaction related to divestment of European industrial coatings business (April 2022) Divestment of Aliva (May 2022) 5 Acquisition of UGL, USA (May 2022) Sika to acquire MBCC Group (expected closing H1 2023) பட் MBCC GROUP aliva III BUILDING TRUST Jika ®#66 HIGHLIGHTS IN 2022 NEW PLANTS Opening of a new plant in the Ivory Coast (February 2022) Opening of a new plant in Tanzania (February 2022) TRUST Opening of new plant in Bolivia (May 2022) Opening of new plant near Washington D.C. (June 2022) BUILDING TRUST Jika#7RECORD RESULTS IN THE FIRST HALF OF 2022 EBIT-MARGIN AT 16.0% 7 in CHF mn Net sales Gross result 2021 NS 2022 NS Growth 4,448.7 100% 5,250.3 100% 18.0% 2,372.8 53.3% 2,592.2 49.4% 9.2% Personnel expenses -813.3 -18.3% 882.4 -16.8% Other OPEX -692.5 -15.5% -673.7 -12.9% EBITDA 867.0 19.5% 1,036.1 19.7% 19.5% Depreciation and amortization -181.1 -4.1% -194.2 -3.7% EBIT 685.9 15.4% 841.9 16.0% 22.7% Net profit 494.7 11.1% 598.8 11.4% 21.0% BUILDING TRUST Jika ®#8RECORD RESULTS IN THE FIRST HALF OF 2022 GROWTH IN LOCAL CURRENCIES OF 19.5% 8 23.5% 19.5% 1.1% 2.9% 4.0% 22.4% 13.4% 15.5% in LC acquisition organic -10.5% in CHF mn Sales 1 HY 2020 3,614.6 1 HY 2021 1 HY 2022 4,448.7 5,250.3 Jika BUILDING TRUST ®#9RECORD RESULTS IN THE FIRST HALF OF 2022 GROWTH IN LOCAL CURRENCIES OF 19.5% +7.6% +39.5% +17.7% +12.0% Growth in CHF +12.9% +35.8% +17.0% +13.2% Growth in LC -5.3% +3.7% +0.7% -1.2% FX impact -0.5% +8.4% +7.8% +5.7% Acquisition EMEA Americas Asia/Pacific Global Business 9 18% 82% Construction Industry Jika BUILDING TRUST ®#10RECORD RESULTS IN THE FIRST HALF OF 2022 ALL REGIONS WITH DOUBLE-DIGIT GROWTH + 12.9% HY 2021 HY 2022 10 + 35.8% 1.54 Americas + 19.5% (in CHF billion, growth in LC) + 17.0% + 13.2% 1.13 0.39 5.25 Global Business Group 2.19 EMEA Asia/Pacific Jika BUILDING TRUST#1111 SIKA'S GROWTH MODEL DELIVERS CONTINUOUS STRONG PERFORMANCE Net Sales (Half-year) 5,500 in CHF mn, growth in LC +19.5% EBIT (Half-year) 900 in CHF mn 5,000 4,500 4,000 3,500 +8.1% 3,000 2,500 +9.6% +2.9% +13.9% +23.5% 5,250.3 2017 2018 2019 2020 2021 2022 800 700 600 500 400 300 4H 841.9 200 2017 2018 2019 2020 2021 2022 BUILDING TRUST Jika ®#122. SIKA'S GROWTH DRIVERS BUILDING TRUST Jika Ⓡ#13RESILIENT STRATEGY - MAJOR MEGATRENDS SUPPORTING GROWTH FURTHER ACCELERATION THROUGH DIGITALIZATION 13 Urbanization Digitalization Climate Change and Scarcity of Resources Demographic Change Dynamic Economy Technological Progress BUILDING TRUST Jika ®#14RESILIENT GROWTH STRATEGY 2023 STRATEGIC TARGETS CONFIRMED 14 Market Penetration Innovation Operational Efficiency Acquisitions Values SUSTAINABILITY 6-8% annual growth 15-18% EBIT margin Until 2020: <15% 25% of sales with new products 0.5% pts non-material cost improvement as % of net sales >10% Operating free cash flow per year as % of net sales >25% ROCE by 2023 12% CO2eq emission reduction per ton sold#15SIKA HIGHLIGHTS STRONG PERFORMANCE DURING TURBULENT YEARS Net Sales in CHF mn 2Y CAGR* +10.0% 9,252.3 EBIT In CHF mn 2Y CAGR +14.8% 1,391.4 2019 2020 2021 2019 2020 2021 *Growth in % LC 15 15 BUILDING TRUST Jika#16GROWTH DRIVER - AFRICA EXPANSION AFRICA IS JUST BEING BUILT 16 Since 2014, Sika has opened 10 new Algeria Tunisia Morocco national subsidiaries and is now present in 18 countries Sika operates 22 production sites and generates sales of CHF 300 million in Africa Population in Africa expected to double to over 2 billion people by 2040 Enormous need for infrastructure, energy and power, real estate High demand to meet international construction standards Senegal Ivory Coast Ghana +284% Nigeria sales growth since 2014 Y Cameroon Angola Namiora Botswana South Africa Egypt Tanzania Ethiopia Kenya Mozambique National subsidiary Branch Plant Djibouti Mauritius La Réunion Jika BUILDING TRUST#17- GROWTH DRIVER – REPAIR AND REFURBISHMENT HIGHLY RESILIENT THROUGH THE CYCLES High resilience of refurbishment through economic cycles Corrective maintenance cannot be postponed Large backlog of projects for corrective maintenance in Europe and the USA Regulations and building standards make refurbishment mandatory Urbanization and densification drive the need for refurbishment 55% of Group sales in construction generated by refurbishment 45% 55% 17 T=6 Et 2.1 ■Refurbishment ■New build In mature markets, 70% of sales in construction generated by refurbishment 30% 70% BUILDING TRUST Jika ®#18- GROWTH DRIVER – INFRASTRUCTURE PROGRAMS CHF 10 TRILLION PLANNED STIMULI 18 US infrastructure investments running into the billions approx. CHF 850 billion EU working towards climate neutrality approx. CHF 400 billion China invests in technology and infrastructure approx. CHF 8,000 billion Extensive infrastructure growth programs stimulate economies Government initiatives in many countries are tied to environmental legislation BUILDING TRUST Jika#19GLOBAL AUTOMOTIVE PRODUCTION RECOVERY EXPECTED IN THE NEXT FEW YEARS in mn units 100 95 90 85 80 80 75 15 70 19 2018 2019 2020 2021 2022 2023 2024 2025 2026 Source: IHS Markit Strong recovery expected Following the pandemic-related decline, a full recovery in global automotive production is predicted to happen by 2025. Global automotive production Forecast (as of May 2022) BUILDING TRUST Jika ®#20GROWTH DRIVER - SUSTAINABLE DEVELOPMENT ENVIRONMENTALLY-FRIENDLY CONSTRUCTION Durability Clinker reduction Roofing By increasing the lifespan of buildings, Sika solutions help reduce the carbon footprint Sika solutions enable clinker reduction in cement and concrete, even when using more challenging supplementary cementitious materials. This fosters better performance and less environmental impact Sika's wide range of durable and long-lasting roofing solutions help reduce energy consumption and make cities more sustainable 20 20 BUILDING TRUST Jika#21GROWTH DRIVER - SUSTAINABLE DEVELOPMENT reCO₂ver® - SIKA BREAKTHROUGH INNOVATION reCO₂ver CONCRETE RECYCLING SENTI Jika ® BUILDING TRUST Сефтес Segregates concrete back to its original ingredients to be re-used for new high-grade concrete This unique process includes sequestration of CO2 and produces high quality SCM powder which allows reduction of cement in new concrete 21 reCO₂ver® contributes to circular economy in construction BUILDING TRUST Jika ®#22GROWTH DRIVER - SUSTAINABLE DEVELOPMENT SIKA ROADMAP TO NET ZERO JAN-MARCH 2021 APR-JUNE 2021 JULY-SEPT 2021 OCT-DEC 2021 JAN-MARCH 2022 APR-JUNE 2022 OCT 2022 Scope 3 kick-off meeting 22 22 Sustainability, ESG, Scope 3 review workshops Materiality Analysis kick-off Annual and Sustainability Report TCFD* 2nd phase kick-off Internal Net Zero Roadmap Strategy 2028 (business+ sustainability) preparation workshops Materiality Analysis Capital Markets Day 2022 approval Scope 3 2021 assessment "Enabler" concept update Materiality Analysis 1st draft External Assurance readiness Net Zero Target and Roadmap announcement + SBTi commitment A great opportunity to position Sika as a sustainability champion BUILDING TRUST Jika ®#23GROWTH DRIVER - EMPLOYEE ENGAGEMENT OUR ENABLERS 23 27,000 employees Our employees enable our success. With their hard work and dedication, they allow Sika to successfully implement its strategy of sustainable growth. ESIKA Sika ME NA DVERE BUILDING TRUST Jika#243. UPDATE ON MBCC ACQUISITION BUILDING TRUST Jika Ⓡ#25UPDATE ON MBCC ACQUISITION ENTERING AN EXCITING NEXT CHAPTER Strong business rationale ■ We have highly complementary products and distribution channels ■ We will accelerate Sika's Growth Strategy 2023 together Together, we will enable our customers and the construction industry to navigate the sustainable transformation 25 BUILDING TRUST Jika ®#2626 UPDATE ON MBCC ACQUISITION COMPLEMENTARY IN MANY WAYS Complementary in many countries, regions, and product ranges. Combination will lead to a very balanced offering. Customers will benefit from a stronger solution portfolio, as well as an enhanced and more efficient distribution network across all construction markets. PCI Für Bau-Profis Solutions Channel Geography Supply Chain BUILDING TRUST Jika ®#2727 SIKA UPDATE ON MBCC ACQUISITION BASED ON STRONG SHARED VALUES AND PRINCIPLES Joining values to provide world-class service to customers, foster a healthy working environment for employees, and continue our strong growth around the world. Customer first Courage for innovation Make the impossible possible Sustainability & Integrity integrity Empowerment & respect People make the difference MBCC GROUP Manage for results Results matter MBCC BUILDING TRUST Jika ®#284. OUTLOOK BUILDING TRUST Jika Ⓡ#29OUTLOOK 2022 CONTINUATION OF SUCCESSFUL GROWTH STRATEGY Sales increase by well over 10% in local currencies, surpassing CHF 10 billion for the first time Over-proportional EBIT increase expected for the year ■ Confirmation of 2023 strategic targets for sustainable, profitable growth ■Net Zero roadmap and targets to be presented at Capital Markets Day on October 4, 2022 Expected sales for 2022 billion >10 HE CHF 29 BUILDING TRUST Jika#30WE STRA THANK YOU FOR YOUR ATTENTION BUILDING TRUST Jika Ⓡ#31FORWARD-LOOKING STATEMENT 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 inability 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. 31 Jika BUILDING TRUST

Download to PowerPoint

Download presentation as an editable powerpoint.

Related

KKR Real Estate Finance Trust Results Presentation Deck image

KKR Real Estate Finance Trust Results Presentation Deck

Real Estate

KKR Real Estate Finance Trust Investor Presentation Deck image

KKR Real Estate Finance Trust Investor Presentation Deck

Real Estate

KKR Real Estate Finance Trust Investor Presentation Deck image

KKR Real Estate Finance Trust Investor Presentation Deck

Real Estate

KKR Real Estate Finance Trust Investor Presentation Deck image

KKR Real Estate Finance Trust Investor Presentation Deck

Real Estate

KKR Real Estate Finance Trust Results Presentation Deck image

KKR Real Estate Finance Trust Results Presentation Deck

Real Estate

KKR Real Estate Finance Trust Results Presentation Deck image

KKR Real Estate Finance Trust Results Presentation Deck

Real Estate

KKR Real Estate Finance Trust Results Presentation Deck image

KKR Real Estate Finance Trust Results Presentation Deck

Real Estate

KKR Real Estate Finance Trust Results Presentation Deck image

KKR Real Estate Finance Trust Results Presentation Deck

Real Estate