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Sika Group Sika Group Financial and Strategic Analysis Review Research Code: GMDCH25387FSAS Publication Date: MAR 2009 Company Overview Key Info Sika Group, Key Facts Website www. sika. com Economic year-end December Number of Personnel 12, 900 Swiss Stock market SIK Origin: Annual Record, Company Website, Primary and Secondary Research Global Markets Direct Business Overview Sika Group (Sika) is a internationally integrated groupengaged in the field of niche chemicals. Theoperations of the organization are broken into twobusiness categories namely the development divisionand the industry division.
Sika presents processingmaterials, which tend to be used in closing, bonding, damping, reinforcing and protecting load-bearingstructures in development and sector. Key Ratios Sika Group, Key Proportions P/E six. 4 EV/EBITDA 4. several Return on Equity (%) 18. 2 Debt/Equity zero. 5 Functioning profit perimeter (%) being unfaithful. 1 Gross Yield zero. 1 Note: Above proportions are based on talk about price since 06-Mar-2009 Supply: Annual Report, Company Site, Primary and Secondary Analysis Global Market segments Direct Reveal Data Sika Group, Discuss Data Value (CHF) as on 06-Mar-2009 687. a few EPS (CHF) 107. 0 Book benefit per discuss (CHF) 89. 9 Stocks Outstanding (in million) 2 . 5 Source: Annual Report, Company Site, Primary and Secondary Analysis Global Market segments Direct SWOT Analysis Sika Group, SWOT Analysis Strong points Weaknesses Global Presence R and d Focus Solid Brand Large Dependency on Construction Part Poor Operating Margin Options Threats Chinese Construction Industry Capital Purchases Strategic Purchases Compliance with REACH Lowering demand for Automotives Intense Competition Source: Total annual Report, Business Website, Main and Supplementary Research Global
Markets Immediate Performance Graph Sika Group, Performance Chart (2004 2008) Source: Company Annual Statement Global Markets Direct Economic Performance The organization has reported revenues of (Swiss Francs) CHF four, 632. forty five million during the fiscal year ended 08, an increase of 1. 15% more than 2007. The operating income of the firm was CHF 422 , 000, 000 during the financial year 08, a decrease of 17. 38% over 2007. The net earnings of the organization was CHF 266. 75 million throughout the fiscal season 2008, adecrease of twenty-one. 93% more than 2007. Table of Articles
Sika Group- Financial and Strategic Research Review Reference Code: GMDCH25387FSAS Table Of Contents Key Information. you Key Ratios.. Share Info.. 1 Performance Chart. Table Of Articles 2 Set of Tables.. three or more
List of Numbers. 3 Key Facts. Business Explanation. 4 Main Products and Services. Guide. 6 History SWOT Examination Overview almost 8 Overview.. Sika Group Strengths. 8 Global Presence.. almost eight Research and
Development Concentrate 8 Strong Brand. almost 8 Sika Group Weaknesses.. Excessive Dependency on Construction Portion 8 Poor Operating Margin. 8 Sika Group Chances. Chinese Development Market on the lookout for Capital Investments Strategic Acquisitions 9 Sika Group Risks. Compliance with REACH 9 Decreasing with regard to Automotives 9 Intense Competition.. Key Rivals. 10 Crucial Employees.. zero Key Staff Biographies.. 11 Company Statement 2 Locations And Subsidiaries.. 14 Head Office.. 4 Different Locations Subsidiaries. 14 Financial Ratios.. 12-15 Capital Marketplace Ratios… 15 Annual Percentages. 15 Temporary Ratios.. six Ratio Chart. 17 Appendix 8 Technique 18 Proportion Definitions. eight About Global Markets Direct 21 Contact Us 1 Palinode. 21 Desk of Items Sika Group- Financial and Strategic Evaluation Review Reference point Code: GMDCH25387FSAS List of Furniture Sika Group, Key Facts.. Sika Group, Important Ratios. 1 Sika Group, Share Info Sika Group, Key Facts.. 4 Major Product or service. Sika Group, History. several Sika Group, Key Employees 0 Sika Group, Important Employee Journal 11 Sika Group, Subsidiaries 4 Sika Group, Percentages based on current share price. 15 Sika Group, Annual Ratios a few Sika Group, Interim Ratios 16 Money Codes. 8 Capital Industry Ratios.. 18 Equity Percentages 8 Earnings Ratios. 19 Cost Percentages 9 Liquidity Ratios 19 Leverage Ratios. 0 Efficiency Ratios. twenty List of Statistics Sika Group, Performance Graph (2004 2008). Sika Group, Ratio Charts.. 17 Sika Group Sika Group- Economic and Ideal Analysis Assessment Reference Code: GMDCH25387FSAS Key Facts Sika Group, Key Facts Corporate and business Address Zugerstrasse 50, Baar, CH-6341, Switzerland Ticker, Exchange Symbol SIK Telephone forty one 58 436 68 00 No . of Employees doze, 900 Fernkopie 41 54.99 436 68 50 Yield (in USD Million) 5, 305 LINK www. sika. com Financial Year End December Market
Chemicals Places Asia-Pacific, Sydney, Bahrain, Chinese suppliers, Croatia, The european countries, France, Philippines, India, Ireland, Italy, Middle section East and Africa, The united states, Russian Federation, South Africa, Southern region and Central America, Italy, Switzerland, Turkey Source: Total annual Report, Company Website, Primary and Second Research Global Markets Immediate Business Information Sika is definitely engaged production of a wide range of specialty chemicals. Its item portfolio include concrete admixtures, specialty mortars, sealants and adhesives, damping and rewarding materials, structural strengthening systems, industrial floor coverings and closing films.
The organization operates in several countries of Europe North, Europe To the south, North America, Latina America and Asia-Pacific. The group’s specialized chemicals organization is split up into two reportable business sections namely the development Division as well as the Industry Section. The Construction Division offers various types of products and solutions that are used in cement production, grouting and mending, concrete fix and safeguard, structural conditioning, elastic securing and connecting, steel protection, flooring and lining, water proof and roofer.
In addition , additionally, it offers concrete floor spraying machines, concrete spraying pumps, water dosing models, telescope spraying arms and concrete bringing out systems. Absolutely free themes of Sika under this kind of division consist of concrete makers, contractors and distributors. Sika offers Sika ViscoCrete-25 MEGAPIXEL, which is a plasticizer for concrete for concrete floor producers. Additionally , the company offers Sika Bond-T52FC/-T54 FC, which can be an cement adhesive system for wooden flooring, along with SikaBond Dispenser-5400 to the technicians.
The company received additional requests for huge projects in the automobile, semi-conductor and digital industry in Taiwan, China, Ireland, Germany and the British. Further, it also won agreements for full and strategies projects in Korea, Chinese suppliers, United Kingdom and Poland and also big parking garages and arenas in Germany, Austria, United Kingdom and Poland. In addition , the company delivers Sikaplan G, a PVC membrane pertaining to sealing huge roof areas installed with mechanical fasteners.
It offers several solutions pertaining to bonding precast concrete elements in the development of new constructions, bridges and towers through auxiliary goods such as the SikaGrout-300 PT and Sikadur-31 SBA. Under the Sector Division, the company is involved in providing research development companies, technical services and program engineering solutions. It develops solutions and processing components for connecting, sealing, damping and reinforcing. It provides customers in several sectors which includes automotive, after market, transportation, marine, and appliances parts. Further, the business is involved in development nd production of roofing program solutions for building owners, architects, planners and installers. Its roofing products consist of Sarnafil and Sikaplan which can be designed for new constructions and refurbishments. Sika operates in facades, fenestration and insulating a glass business through Sika FFI. SIka FFI is a group of professionnals in securing and binding in facades, windows and insulating cup. The various products and applications of Sika FFI are structural glazing, window bonding, insulating goblet, weather finalizes, glazing applications, panel devices, water proofing systems and ancillary items.
Sika operates in field of underground building through Sika Tunneling Exploration. This company is definitely involved in fresh developments inside the three core fields particularly construction chemicals, equipment and waterproofing systems. Sika does its circulation activities through Sika Distribution. It distributes various global brands specifically Sikaflex, Sikasil, Sika Growth, SikaBond, Sikalastic, Sikagard, Sika AnchorFix, Sikadur and Sikafloor. The company operates through many distributors namely, builder retailers, home centers, floor covering operate, timber control, roofing sellers, hardware shops, agro sellers and paint dealers.
Sika Group Sika Group- Economical and Proper Analysis Review Reference Code: GMDCH25387FSAS During FY 2008, the construction section accounted for 80% of the total revenues from the crew and the market division made up the balance 20%. The group classifies the geographical spots into 6 regions particularly Europe North, Europe To the south, North America, Latin America, IMEA and Asia/Pacific. The Europe North area accounted for thirty seven. 7% from the total earnings of the group to get the financial year ended 2008 then Europe Southern (22. 7%), North America (14. 2 %), Asia/Pacific (10. 4 %), Latin America (9. 4 %) and IMEA (5. %). During fiscal season 2008, Sika completed the acquisition of Iotech Group Limited, which specializes in formulation, development and supply of polyurethane the liquid membranes and intermediates. This kind of acquisition allows Sika to expand the technology and market ingenuity and build up a market position in polyurethane material liquid walls for roofing. In 2009, Sika acquired Pelplast Utvecklings ABS based in Vadstena, Sweden. This kind of acquisition will expand Sika’a offering in specialty epoxy resins intended for compact flooring surfaces. Sika Group Sika Group- Financial and Strategic Examination Review Reference point Code: GMDCH25387FSAS Major Product or service
Overview Sika is providing different kinds of niche chemical items, brands and systems towards the construction and industrial buyers. The companys key companies brands are the following: Major Products and Services Goods: Concrete admixtures Specialty mortars Sealants Creams Damping Rewarding materials Structural strengthening systems Industrial floors Sealing movies Shotcrete Admixtures Grouting and Fixing Polymer-binder-based mortars Fiber Reinforced Polymers Structural Glazing Window connecting Insulating a glass Weather seals Glazing applications Panel systems Water proofing systems
Additional products Instruments: Concrete bringing out machines Concrete spraying pumping systems Liquid dosage units Telescope spraying biceps and triceps Concrete spraying systems Brands: Sika ViscoCrete-25 MP Sika Bond-T52FC/-T54 FC SikaBond Dispenser-5400 Sikaplan G SikaGrout-300 REHABILITATION Sikadur-31 SMALL BUSINESS ADMINISTRATION Sikaflex SikaBond Sika AnchorFix Sika Combine Sarnafil and Sikaplan Sika CarboDur Sikasil Sika Growth Sikalastic Sikagard Sikadur Sika Group Sika Group- Economical and Tactical Analysis Review Reference Code: GMDCH25387FSAS Sikafloor Sika BlackSeal Sikacryl Resource: Annual Statement, Company Site, Primary and Secondary Research Global Market segments Direct
History Sika Group, History 2009 Acquisitions/Mergers/Takeovers In 2009, Sika bought Pelplast Utvecklings AB operating out of Vadstena, Sweden 2008 Acquisitions/Mergers/Takeovers In 2008, Sika accomplished the purchase of Iotech Group Limited, an experienced professional in formula, production and provide of polyurethane liquid membranes and intermediates. 2008 Acquisitions/Mergers/Takeovers In January 2008, Sika purchased the organization of the German born Tricosal GmbH Co. KILOGRAM in Illertissen. 2008 Acquisitions/Mergers/Takeovers In 2008, the company in the business intended for polymer-based commercial flooring of Valspar Organization in the US. 007 Other Sika opened a new production center in Chicken which relates to manufacturing admixtures, mortars, films as well as resins for flooring. 2007 Additional Sika exposed its 6th production facility in China. This facility would generate Sikaflex polyurethane material adhesives and also concrete admixtures and mortars 2007 Different In 2007, Sika obtained MRT Construction Products situated in Edmonton, Canada. 2005 New Products/Services In 2005, Sika introduced Sika ViscoCrete-25 MP, a super plasticizer for tangible. 1968 Stock Listings/IPO During 1968, the shares on the SWX Swiss Exchange. 910 Incorporation/Establishment In 1910, Sika group was founded in Zurich. Source: Twelve-monthly Report, Business Website, Main and Secondary Research Global Markets Direct Sika Group Sika Group- Financial and Strategic Examination Review Research Code: GMDCH25387FSAS SWOT Examination Overview Guide Sika Group (Sika) is actually a specialty substance company engaged in developing processing materials employed in sealing, connecting, damping, rewarding and protecting load-bearing constructions in building and other industrial sectors. It has functions across the globe much more than seventy two countries.
The business has fifty five global production sites of which 23 are located in Europe. Sika’s global procedures have empowered the company to cater a diversified consumer bottom. The focused research and development activities of the business have enabled it in developing a solid product collection. The developing demand for construction chemicals in China and the strategic opportunities and purchases made by the company are expected to increase growth. Nevertheless , intense competition in the market along with reducing demand for automotives could negatively impact companys performance.
Sika Group Advantages Global Presence Sika is known as a global business with procedures in more than 72 countries across the world. Their operations will be spread across Europe, The united states, Latin America, Middle East and Africa, and Asia Pacific. The company has fifty-five manufacturing features located across the world with 23 in Europe. Its operations around the world are regulated by more than 100 production and promoting companies. Global presence allows the company to cater to broad range of customers worldwide and provides several growth possibilities.
It also decreases the risk associated with operation with the company’s organization in limited geography. R and d Focus Sika gives highest importance to analyze and development so as to develop new and innovative items. The company employs a central and decentralized research strategy. Centrally prepared research grips long term study programs, delivers analytical providers and establishes RD managing for the entire firm. The company’s decentralized research relates to adaptation of products, solutions and applications to regional or customer-specific requirements.
Sika works nine technology centers around America, Europe and Asia which concentrate on regional version of products, solutions and applications. Further, the company participates in a variety of international projects and is lively among additional organizations inside the NanoCem Range. To further boost its research and development activity, the corporation collaborates with assorted top educational institutions in Swiss, the USA, Philippines, Spain, Portugal, China and India. Sika’s total r and d spending during the year increased to CHF seventy four. 1 , 000, 000 in 2008 from CHF 65. mil in 3 years ago. The company’s patent filings improved from sixty in 3 years ago to 80 in 2008, and the quantity of invention disclosures amounted to 84 in 2007. Sika’s focused research and development activity provides enabled that in producing several fresh and progressive products through the years. Strong Brand Sika enjoys a strong company presence and its particular logo is recognized the worldover as a sign of quality, creativity and service. Sika includes a high degree of brand understanding particularly like a logo. It has enabled the corporation to place high value on consistent and standardized use of the logo.
Customers will be ensured of receiving high quality and service wherever the Sika logo appears. The Sika brand as well as 614 additional logos such as Sikaflex, Sika ViscoCrete or SikaBond provide a marketplace advantage for the company. The strong brand-image of the firm enables this to distinguish the item from its competition. In addition , the company’s brand deepens its products an optimistic value belief and keeps the self-confidence of its customers. Sika Group Disadvantages High Dependency on Building Segment The company is creating a major part of its income from the building segment.
This kind of segment made up 80% of total earnings of the company in 12 months 2008.. The company’s high dependency on development segment might expose it to business risk. If the demand for the products and services of the segment fall, then the income of the organization may be adversely affected. Poor Operating Margin During the money year 2008, Sika registered a poor operational performance. The operating income of the business was CHF 422. 0 million through the fiscal 12 months 2008, a decrease of 18. 4% over 2007. The operating perimeter declined by 11. 1% in 3 years ago to being unfaithful. 1% in 2008.
The decline in operating perimeter was because of increase in operating expenses simply by 3. five per cent. Further, the large, short-term embrace raw material prices damaged the profitability. The indegent operational efficiency reveals the process of taking care of costs. The shortcoming of the company to manage their expenses successfully could detrimentally affect the profitability. Sika Group Sika Group- Financial and Tactical Analysis Review Reference Code: GMDCH25387FSAS Sika Group Chances Chinese Development Market The demand for construction chemical products used in on-site applications can be increasing in China.
The need is supposed to reach a total of CNY 40 billion by 2012, representing a 10. 1% annually growth by 2009. This kind of growth would be driven simply by increase in equally new building, and improvement and repair projects. Even more, it has been expected that caulks and creams will remain the largest construction substance product category in 2012, accounting for about 40% of total industry product sales. The next biggest product category is concrete and concrete additives. In addition , demand for polymer flooring is also expected to enhance, driven by increasing make use of these products in high-end residential and industrial parking.
With regard to sprayed polyurethane foam will be boosted by their increasing utilization in efficiency applications. The increasing require in China for numerous construction chemical substance products could boost the industry’s sales in the region. Capital Purchases The company made several ideal investments throughout the fiscal year 2008. Investments in property, herb and products have increased from CHF 179 million in 2007 to CHF 224 million in 2008. The company continue to be focus on elevating the twelve-monthly production capacity of Sikaflex and Sika ViscoCrete, and roofing and flooring devices, as the necessity for these items is progressively increasing.
Besides investments into newer features, the company focused on extension or perhaps modernization of existing creation plants. During fiscal 2008, the company completed construction of its new production facility for Sikaflex in Dudingen, Switzerland. In addition , the production capacity for Sikaflex in Europe was doubled. Even more, the company improved the capacity for roofing walls in Dudingen, Switzerland. The other fresh facilities added include production units intended for high-viscosity polyurethane material adhesives in america and in Asia, a facility for concrete floor additives in China and two installations for Sika ViscoCrete in Belgium and Germany.
Additionally , the company has turned investments for developing a new research and development centre in Zurich, Switzerland. The corporation is looking foward to meet the increasing with regard to various goods through strategic investments. Tactical Acquisitions Along with organic and natural growth, Sika continuously concentrates on growth through acquisition. That focuses on the acquisition of these assets and technologies which in turn would reinforce or enhance its key business and those which could be used worldwide. In January 2008, Sika bought the business in the German Tricosal GmbH Company.
KG, one of the leading enterprises in regards to sealing and waterproofing of buildings and civil architectural structures in Germany. This acquisition can be expected to broaden the product portfolio of Sika and reinforce its skills for the sealing of structures. In addition , Tricosal’s area-wide distribution covering four branch offices along with onsite solutions has strengthened its job business in the German industry. Further, Sika took over the company for polymer-based industrial floor coverings of Valspar Corporation in the US. This acquisition ie likely to enable the business to enhance where it stands in the floors systems sector.
The purchase of Iotech Group Limited, an expert in formula, production and supply of polyurethane material liquid membranes and intermediates is supposed to enable Sika to increase its technology and market know-how and build up a market position in polyurethane liquefied membranes intended for roofing. More recently in 2009, Sika acquired Pelplast Utvecklings AB based in Vadstena, Sweden. The acquisition is going to add worth to Sika’a offering in specialty epoxy resins intended for compact floors. The acquisitions made by Sika are expected to broaden their product stock portfolio and could help in reaching out to newer markets.
Sika Group Threats Complying with REACH In 06 2007, europe bought a fresh regulation named REACH (Registration, Evaluation, Authorization and Constraint of Chemicals) into pressure. REACH can be described as regulation upon chemicals and the safe work with. The aim of REACH is to enhance the protection of human health insurance and the environment through identification from the intrinsic homes of substances. This legislation applies to chemicals manufactured or marketed in Europe, and its regulations have an effect on companies exporting chemicals to Europe as well as those located there.
Complying with REACH requires executing cost-benefit examines of chemical substances, understanding the source chain, gathering information pertaining to the CSR, arranging for studies on exposures to and hazards of chemicals, and gathering info from existing studies upon exposure and hazard. All the above mentioned activates require the help of skilled specialists which may lack in small and mid size companies. In addition compliance with REACH needs registration quite expensive. Companies like Sika are most likely to suffer while compliance with REACH can be described as tedious and expensive method.
If the business fails to comply with this legislation, then its exports to Europe will be dampened which would detrimentally affects the turnover in the company. Reducing demand for Automotives The global financial crisis has had an adverse affect around the automotive industry globally. The automotive industry is facing a major downturn, with the with regard to automobiles and related companies falling speedily. U. T automotive product sales fell 13. 2 million in 2008, down 18% from of sixteen. 1 mil in 3 years ago, because of the financial disaster and credit crunch. It has been believed that the U. S. uto sales would fall about 13% to 11. 5 million models in 2009, as a result of high unemployment, low consumer confidence and mounting personal debt. The automobile sector is one of the major areas serves by the company. A pointy fall in the Automotive marketplace will adversely affect the product sales and thus the income of the firm. Intense Competition Sika is definitely facing intense competition via a number of players both regional and worldwide across the world. That faces competition in the parts of price, item, customer service and quality. It is major competition are BASF SE, CRH Plc., T. R.
Style Co., Lafarge S. A., Propex Inc., and Evonik Degussa Company. Some of its competitors are big players having much larger resources and wider geographical presence than the company. These kinds of competitors happen to be in a better position to Sika Group Sika Group- Financial and Strategic Evaluation Review Research Code: GMDCH25387FSAS handle a global meltdown and falling demand and remain competitive. Firece competition may pose a threat for the very living of the company. Key Rivals The following companies are the major competitors of Sika Group: BASF SE CRH plc Evonik Degussa GmbH
H. M. Fuller Business Okong Organization Soken Substance Engineering Company., Ltd. Crucial Employees Sika Group, Essential Employees Identity Job Name Board Level Since Age group Iven Chadwick Director Not Executive Table 2009 Doctor Walter Gruebler Chairman Professional Board 2004 67 Dr Thomas Bechtler Vice Chairman Executive Panel 1989 60 Urs Farreneheit. Burkard Representative Non Professional Board 1990 52 Urs B. Rinderknecht Director No Executive Board 1998 63 Dr Toni Rusch Representative Non Professional Board 2150 65 Daniel J. Tiquer Director Not Executive Table 2000 52 Fritz Studer Director Non Executive Table 2006 66 Dr . Ulrich W.
Suter Director Low Executive Table 2003 65 Christoph Tobler Director Low Executive Table 2005 52 Ernst Bartschi Chief Executive Officer Senior Management june 2006 57 Silvio Ponti Mouthpiece Chief Executive Officer, The european union North Senior Management 2002 56 Ronald Trachsel Primary Financial Police officer Senior Managing 2008 60 Urs Mader Officer, Research and Development Senior Managing 2005 fifty four Peter Krebser Head, Procedures Senior Managing 2004 59 Jan Jenisch Regional Manager Asia Pacific Senior Administration 2007 43 Paul Schuler Regional Administrator North America Elderly Management 3 years ago 54 Jose Luis Vazquez
Regional Director Europe Southern region Senior Managing 2002 sixty two Alexander Bleibler Head, Company Business Unit Contractors Elderly Management 2007 56 Accigliato Fritsche Head, Corporate Business Unit Industry Senior Management 2007 57 Christoph Ganz Head, Business Business Device Distribution Mature Management 3 years ago 40 Ernesto Schumperli Head, Corporate Business Unit Concrete Senior Supervision 2007 54 Source: Annual Report, Firm Website, Main and Second Research Global Markets Direct Sika Group Sika Group- Financial and Strategic Examination Review Reference point Code: GMDCH25387FSAS Key Staff Biographies
Sika Group, Important Employee Journal Dr Walter Gruebler Work Title: Leader Board Level: Executive Table Since: 2004 Age: 67 Mr. Gruebler is the Leader of the business since 2004. Recently, he offered as the Chief Executive Expert for Sika AG among 2000 and 2004. During 1990 and 1999, this individual hold the location as Member of Group Management, alusuisse, Zurich. From mid 1970s to 1990, Gruebler also worked because the Chief Business Officer and Vice Leader, Airex AKTIENGESELLSCHAFT. During late 1960s and 1974, he offered as Task Leader and Member of Exec Board, Hayek Engineering AG, Zurich.
Additionally , Gruebler is usually the Chairman, Board of Director of Adval Technology AG, Niederwangen. He is as well Member, Table of Movie director of Nationale Suisse, Basel, Quadrant AG, Lenzburg, Petroplus Holdings AG, Zug and a Member of Board Swiss Society of Chemical Companies, Zurich. Ernst Bartschi Work Title: Chief Executive Officer Board Level: Senior Managing Since: june 2006 Age: 57 Mr. Bartschi is the Ceo of the firm since 2005. Earlier, he served while the Chief Economical Officer and Member of the Group Supervision during 2002 and 2005. Before that, Bartschi was the Chief Economic Officer and Member of Corp.
Management Team of Schindler Management AKTIENGESELLSCHAFT between 97 and 2001. During 1993and 1997, this individual also dished up as the Managing Overseer and Economical Manager of Schindler Aufzuge AG, Switzerland. In between 80 and 93, he likewise hold a number of positions such as Area Controller, Head of Group Area Controlling as well as the Chief Financial Officer, Escalator and Escalator Division in Schindler Administration AG. Ronald Trachsel Task Title: Main Financial Expert Board Level: Senior Supervision Since: 2008 Age: 50 Mr. Trachsel joined as the Chief Financial Officer with the company in 2008.
Recently, he dished up various positions in Vitra Group like the Chief Economical Officer, the main Executive Expert, Head of Group Supervision as well as Exec Director, Ormand AG during 1999 and 2007. During 1992-99, he worked since Head Inside Audit as well as the Chief Monetary Officer, Ringier Europe pertaining to Ringier Group. Between 1987 and 1992, Trachsel dished up in Ciba-Geigy Group pertaining to Internal Audit. Earlier, using the his career with Visura Treuhandgesellschaft, in which he is responsible for accounting and tax counseling to get small and medium-sized enterprises.
Resource: Annual Survey, Company Internet site, Primary and Secondary Exploration Global Marketplaces Direct Sika Group Sika Group- Economic and Ideal Analysis Review Reference Code: GMDCH25387FSAS Organization Statement A joint declaration by Mister. Walter Gruebler, the Chairman of Sika Group and Mr. Ernst Bartschi, the Chief Executive Expert of Sika Group has below. The statement have been taken from you’re able to send 2008 Gross annual Report. INDUSTRY ENVIRONMENT BECAUSE CHALLENGE 12 months 2008 should go down of all time as the season in which global market circumstances changed more quickly than ever before inside the history of economics.
What started as a economic crisis in real estate property in the USA enhanced during the course of the year under review to a extensive crisis in the real economic climate, and in the next and especially fourth 1 / 4 led to unfavorable developments in many Sika market segments. The massive, immediate increases in raw material prices during the second half the year could either not really be passed on to consumers, or only in part. Additionally , in a number of market segments local values suffered significant losses in value, for example in Great Britain, Quotes and Korea, which worn away corresponding margins within a very short time.
PREPARED FOR THE FUTURE The automotive industry incurred an especially tough deterioration of conditions. Inside the first half of the year automotive manufacturers ” except in america ” were still capable to raise the range of automobiles bought from comparison with the corresponding length of the previous yr. In the third and most important in the fourth quarter worldwide turnover plummeted. The sales of suppliers of pickup trucks, busses and yachts created similarly with greater tonefald. In the construction industry the style did not turn into gloomy and so rapidly.
In the beginning the slump was restricted to the USA, in the third quarter Great Britain, Ireland, Spain and New Zealand followed, and the span of the fourth one fourth the downturn gripped almost all countries. Thus for example in Russia towards end from the reporting period, various main construction tasks were halted, and the kickoff of designed construction assignments was temporally postponed, possibly to be abandoned completely. A large number of countries, however , have announced economic government programs, which usually across the board incorporate extensive investments in nfrastructure. Right here Sika is well located to make money from such applications, above all inside the refurbishment sector. From knowledge nevertheless, a while elapses between your approval and realization of such projects. In response to the negative innovations of the previous months, we certainly have reacted in accordance with the particular situation of individual industries and local companies. Therefore for example vacation, where building and development activity demonstrated clear weak points very early on, we lowered costs and adapted themselves to the new conditions.
In the modern business season we will proceed with this situation-appropriate reaction to country-specific changes. Included here many other things are the report on all organized investments and new employs. FURTHER PROGRESS Overall Sika achieved growth of 7. 3% in community currencies back in under assessment, resulting from organic growth of five. 9% and growth through acquisitions of just one. 4%. The majority of currencies shed considerable benefit opposite the Swiss franc during the course of the year, this had a negative effect of -6. 2% on sales. Growth in Swiss tendu thereby amounted to 1. %. Sika misplaced in 2008 the enormous development dynamic of recent years. Were gaining added customers and increasing each of our customer penetration, nevertheless the total business of all customers provides fallen back again considerably. Income could not reach the record result of the prior year. Not simply the lost growth dynamism, but especially the high exchange price of the Switzerland franc and the enormous, immediate price raises for recycleables, which could just be passed on towards the market in small part, had a solid effect on the effect.
EBITDA decreased 12. 8% to CHF 556. you million, and net profit after taxation fell by simply 21. 8% to CHF 267. 4 million. This is certainly non-etheless the second-best bring about Sika’s background. A SOLID BUDGET The balance linen and the auto financing of our venture are stable. The net seed money in proportion to net sales could be lowered from 20. 2% to 19. 3% as a result of superior management of receivables and due to currency-related shifts in mix. Fresh structures and processes over the supply sequence led contrary to a temporary increase in inventories.
With a syndicated personal credit line of CHF 450 mil that is at present not being attracted on, as well as own cash and funds equivalents, fluidity is over a sound level. SUSTAINABLE CREATION Sika Group Sika Group- Financial and Strategic Evaluation Review Research Code: GMDCH25387FSAS In the year below review Sika identified numerous demands the fact that principle of sustainable development makes in our company. And so for example the environmentally friendly handling of water is known as a duty that Sika allows to preserve this valuable resource likewise for foreseeable future generations.
Our concrete admixtures are making a contribution previously today simply by substantially reducing water ingestion in the make of concrete (see site 42). One other example will be grinding assists, with which cement producers can easily significantly reduced energy usage in their manufacturing process. For 2010 Sika is usually planning a detailed report of its accomplishments regarding lasting development. PROSPECT Due to the distributing economic crisis all of us reckon with losses in lots of of the market segments that are relevant for us.
The Construction Division feels the cooling demand which includes delay, and on the furthermore will also revenue later from an economic recovery. Economic incitement packages in infrastructure building and development will help simply to compensate progress slumps in private sector construction. Sika will still exploit all available growth possibilities, and thereby use the greater readiness of customers to use higher-value systems that based on experience emerges above all in crisis conditions, taking this kind of opportunity to present new products and solutions to marketplace.
Further progress markets, raw material rates and exchange rates stay highly unclear, so that at present no exact forecast of sales and profit will be possible. We all proceed via a prolonged recession circumstance, which allows expectation of clear growth alerts at the initial in 2010. We all will employ the current organization year to increase the efficiency of our creation facilities and our global supply sequence still further. In addition , with regard to the manufacturing of the products all of us will review and optimize the allowance of individual facilities and factories.
All of us remain furthermore convinced that on mid-term annual normal we can accomplish organic growth between 8 and ten percent. We have designed this potential systematically during the last few years. Hence foremost in building and construction, the financial markets for nearly each of the technologies that people offer remain largely fragmented, and the loan consolidation process that individuals can come with as a globally established firm has only begun. Our keys to success continue to be innovation, progression of industry penetration and convincing solutions adapted to customer demands.
Above all complete, total solutions for crucial customers who are effective worldwide, and then for major key projects will thereby turn into ever more essential. We will continue to go after our purchase strategy of securing fresh technologies that reinforce or perhaps complement primary business, plus the acquisition of market share in United states, India, the center East and East Asia. The present economic situation has drastically improved all of the changes for good acquisitions that represent value for money. PROPOSALS FROM THE BOARD OF DIRECTORS The Board of Directors suggests to the Annual General Getting together with the payment of a gross dividend of CHF 45. 0 (previous year: CHF 45. 00) per bearer share, and respectively of CHF six. 50 (CHF 7. 50) per listed share. The payout amount thereby sums to CHF 111. five million, which represents roughly 42% (33%) of consolidated net profit. Sika thus continues its long-time dividend policy. The Twelve-monthly General Conference is expected to elect Dr . Paul Halg, President of Group Management, Datwyler AG, towards the Board of Directors. Doctor Toni Rusch, who has dropped reelection, will get our very good his commitment in particular since Chairman in the Audit Panel. Board People Daniel Sauter, Prof. Dr .
Ulrich Suter and Fritz Studer are a symbol of reelection. We all once again expand our thanks to our customers, suppliers, investors and our employees, who may have also almost all demonstrated while times are more difficult what partnership will probably be worth and what committed determination can attain. Sika Group Sika Group- Financial and Strategic Evaluation Review Reference Code: GMDCH25387FSAS Locations And Subsidiaries Hq Sika Group Zugerstrasse 50 Baar ZERO: CH-6341 Swiss Tel: forty one 58 436 68 00 Fax: 41 58 436 68 60 Other Spots Subsidiaries Sika Group, Subsidiaries Sika Services AG Tuffenwies 16 Zurich
Zip: CH 8048 Switzerland Tel: 41 0 54.99 436 forty-five 67 Fax: 41 0 58 436 55 30 Sika Architectural Silicones Srl Via M. Einaudi, 6 Peschiera Borromeo MI Italia Tel: 39 02 516 591 206 Fax: 39 02 516 591 298 Source: Total annual Report, Business Website, Major and Extra Research Global Markets Immediate Sika Group Sika Group- Financial and Strategic Evaluation Review Guide Code: GMDCH25387FSAS Financial Percentages Capital Industry Ratios Sika Group, Percentages based on current share price Key Ratios 06-Mar-2009 P/E (Price/Earnings) Proportion 6. 5 Enterprise Value/Earnings Before Curiosity, Taxes, Depreciation and Retirement 4. Venture Value/Sales zero. 5 Enterprise Value/Operating Profit 5. 1 Enterprise Value/Total Assets 0. 7 Dividend Yield 0. 1 Notice: Above ratios are based on reveal price as of 06-Mar-2009, the above ratios happen to be absolute numbers Source: Twelve-monthly Report, Company Website, Major and Extra Research. Global Markets Direct Annual Percentages Sika Group, Annual Percentages Key Ratios Unit/Currency 2005 2005 2006 2007 2008 Equity Percentages EPS (Earnings per Share) 47. almost 8 60. 1 91. 5 135. 5 107. 0 Dividend per Share 23. 2 45. 0 forty five. 0 Gross Cover Overall 2 . 9 3. zero 2 . 5 Book Benefit per Reveal 368. a few 428. zero 97. almost 8 587. 5 589. 9 Cash Worth per Talk about 37. several 61. zero 168. a few 174. 8 128. four Profitability Ratios Gross Margin % 54.99. 3 55. 7 53. 6 53. 1 fifty-one. 4 Functioning Margin % 8. a couple of 8. some 9. your five 11. a couple of 9. 1 Net Earnings Margin % 4. several 5. a couple of 5. being unfaithful 7. five 5. 8 Profit Tag up % 140. zero 125. almost 8 116. you 113. 3 106. 3 PBIT Margin (Profit Just before Interest Tax) % 7. 5 almost 8. 0 eight. 5 15. 5 almost 8. 1 PBT Margin (Profit Before Tax) % six. 5 eight. 0 almost eight. 5 12. 5 eight. 1 Come back on Fairness % 12. 9 18. 1 18. 4 twenty three. 2 18. 2 Come back on Capital Employed % 18. 7 17. four 15. eight 19. almost 8 16. 7 Return about Assets % 7. 1 5. on the lookout for 7. 6 10. 3 8. several Return on Fixed Resources % 28. 18. 6th 28. you 36. four 28. eight Return in Working Capital % 55. six 264. zero 36. one particular 43. five 39. 9 Cost Ratios Operating Costs (% of Sales) % 91. almost eight 91. 6 90. 5 88. 9 90. on the lookout for Administration Costs (% of Sales) % 24. 6th 23. 5 21. six 20. two 20. several Liquidity Proportions Current Rate Absolute 1 . 7 1 ) 1 2 . 4 installment payments on your 6 2 . 6 Speedy Ratio Total 1 . two 0. 8 1 . 9 1 . on the lookout for 1 . 8 Cash Proportion Absolute zero. 2 zero. 1 0. 6 zero. 6 zero. 5 Power Ratios Personal debt to Value Ratio Total 0. two 0. 6 0. 6th 0. a few 0. five Debt to Capital Rate Absolute 0. 2 zero. 5 0. 3 0. 3 0. 3 Productivity Ratios Asset Turnover Complete 1 . your five 1 . 1 1 . a few 1 . some 1 . some Inventory Proceeds
Absolute three or more. 9 three or more. 5 some. 4 5. 3 5. 4 Current Asset Proceeds Absolute installment payments on your 7 installment payments on your 3 installment payments on your 2 installment payments on your 4 installment payments on your 7 Capital Employed Proceeds Absolute 2 . 7 installment payments on your 7 a few. 1 a few. 1 several. 2 Working Capital Turnover Total 6. almost 8 31. a few 3. almost 8 3. being unfaithful 4. some Revenue per Employee 358, 488 Sika Group Sika Group- Financial and Tactical Analysis Review Reference Code: GMDCH25387FSAS Net gain per Worker 20, 674 Capex to Sales % 4. a couple of 3. 9 3. 6 4. 1 5. zero Source: Gross annual Report, Business Website, Primary and Second Research Global Markets Immediate Interim Ratios Sika Group, Interim Ratios Key Ratios Unit/Currency Dec-2007 Jun-2008
Sep-2008 Dec-2008 Interim EPS (Earnings per Share) 28. 5 75. four 44. 5 3. six Book Worth per Reveal 587. 5 559. one particular 589. being unfaithful Current Rate Absolute 2 . 6 installment payments on your 3 installment payments on your 6 Asset Turnover Complete 0. 4 0. several 0. three or more Current Advantage Turnover Total 0. six 1 . 2 0. six Working Capital Turnover Absolute 1 . 0 2 . 1 1 . 0 Resource: Annual Survey, Company Site, Primary and Secondary Analysis Global Marketplaces Direct Sika Group Sika Group- Economic and Tactical Analysis Assessment Reference Code: GMDCH25387FSAS Percentage Charts Sika Group, Percentage Charts EPS Operating Perimeter Return in Equity Go back on Property Debt to Equity Percentage
Source: Twelve-monthly Report, Company Website, Primary and Extra Research Global Markets Direct Appendix Sika Group- Monetary and Strategic Analysis Review Reference Code: GMDCH25387FSAS Appendix M ethodology G lobal Markets Direct company studies are based on a core group of research approaches which make sure the best possible quality level and accuracy of data. The important thing sources used include: ¢ Company Websites ¢ Company Annual Studies ¢ SECURITIES AND EXCHANGE COMMISSION’S Filings ¢ Press Releases ¢ Proprietary Databases Currency Rules Currency Code Currency CHF Swiss Dextre Global Market segments Direct Rate Definitions
Capital Market Ratios Capital Market Ratios evaluate investor response to owning a companys stock and also the cost of issuing stock. Price/Earnings Ratio (P/E) Price/Earnings (P/E) ratio is known as a measure of the purchase price paid for a share relative to the annual rent earned every share. It is a financial proportion used for value: a higher P/E ratio means that investors will be paying even more for each unit of salary, so the share is more expensive compared to one with decrease P/E ratio. Also, a high P/E suggests that investors expect higher profits growth later on compared to companies with a lower P/E.
Cost per talk about is as of previous business close, and EPS is from most current annual statement. Calculation: Cost per Talk about / Revenue per Talk about Enterprise Value/Earnings before Fascination, Tax, Devaluation Amortization (EV/EBITDA) Enterprise Value/EBITDA (EV/EBITDA) is known as a valuation multiple that is frequently used in seite an seite with, or perhaps as an alternative to, the P/E ratio. The main advantage of EV/EBITDA over the RAPID EJACULATIONATURE CLIMAX, ratio is the fact it is unaffected by a companys capital structure. It even comes close the value of a small business, free of financial debt, to earnings before curiosity. Price every share is just as of prior business close, and stocks outstanding last reported.
Additional items are via latest gross annual report. Calculations: (Market Hat + Financial debt + Desired Stock Money Cash Equivalents) / (Net Income + Interest & Tax & Depreciation + Amortization) Organization Value/Sales Venture Value/Sales (EV/Sales) is a ratio that provides a good idea of how very much it costs to buy the companys product sales. EV/Sales can be considered more accurate than Price/Sales since market capitalization does not take into account the amount of debt a business has, which will needs to be repaid at some point. Cost per talk about is as of previous business close, and shares excellent last reported.
Other items are from most recent annual report. Calculation: (Market Cap & Debt + Preferred Stock Cash Money Equivalents) as well as Sales Business Value/Operating Revenue Enterprise Value/Operating Profit steps the companys enterprise benefit to the operating profit. Cost per reveal is as of previous business close, and shares excellent last reported. Other items are from newest annual report. Calculation: (Market Cap & Debt + Preferred Stock Cash Funds Equivalents) as well as Operating Salary Enterprise Value/Total Assets Business Value/Total Possessions measures the companys venture value towards the total possessions.
Price per share can be as of previous business close, and stocks outstanding last reported. Various other items are from latest twelve-monthly report. Computation: (Market Cap + Debt + Preferred Stock Cash Cash Equivalents) / Total Assets Dividend Yield Dividend Yield shows how much a company pays out in dividends annually relative to its share selling price. In the a shortage of any capital gains, the dividend produce is the return on investment for a share. Calculation: Annual Dividend every Share / Price per Share Global Markets Direct Equity Ratios These ratios are based on every share worth.
Earnings per Share (EPS) Earnings every share (EPS) is the portion of a companys profit invested in each spectacular share of common inventory. EPS is an indicator of a companys profitability. Computation: Net Income / Weighted Average Shares Dividend per Share Dividend may be the distribution of any portion of a companys income, decided by board of directors, into a class of its shareholders. Dividend Cover Dividend cover is the percentage of companys earnings (net income) above the dividend paid out to shareholders. Calculation: Profits per talk about / Gross per reveal Book Benefit per Share
Book Value per Reveal measure used by owners of common stocks in a organization to determine the level of safety connected with each individual reveal after all debts are paid accordingly. Appendix Sika Group- Financial and Strategic Research Review Research Code: GMDCH25387FSAS Calculation: (Shareholders Equity Recommended Equity) as well as Outstanding Stocks Cash Worth per Share Cash Benefit per Talk about is a way of measuring a companys cash (cash equivalents on the balance sheet) that is determined by dividing funds equivalents by total stocks and shares outstanding. Calculation: Cash variation / Exceptional Shares
Global Markets Direct Profitability Percentages Profitability Percentages are used to examine a companys ability to make earnings, based upon revenues made or solutions used. For some of these percentages, having a bigger value relative to a opponents ratio or the same rate from a previous period can be indicative which the company has been doing well. Low Margin Low margin may be the amount of contribution to the business enterprise, after paying for direct-fixed and direct-variable unit costs. The beliefs displayed happen to be of FY 2007. Calculations: {(Revenue-Cost of revenue) / Revenue} *100
