Geberit : Presentation on the annual results 2019

Analyst conference

Full year results 2019

Christian Buhl, CEO

Roland Iff, CFO

March 10, 2020

Agenda

Overview	C. Buhl
Sales development	C. Buhl
Financial results	R. Iff
Building construction outlook	C. Buhl
Geberit outlook	C. Buhl
Summary	C. Buhl

SLIDE 2

ANALYST CONFERENCE - FY 2019 MARCH 10, 2020

Key figures 2019

Net sales growth		Net sales growth
(in CHF)		(in local currencies)
+0.1%		+3.4%

Earnings per share		Free cashflow growth
growth1 (in CHF)		(in CHF)
+4.4%		+10.7%

1 Compared to adjusted previous year's figure

EBITDA margin	Net income growth1
	(in CHF)

29.3%	+3.3%
+110 bps vs PY
Dividend proposal 2019	IFRS 16 effect
(in CHF)
11.30	EBITDA margin
+60 bps

+4.6% vs PY

SLIDE 3

ANALYST CONFERENCE - FY 2019 MARCH 10, 2020

Sales & marketing 2019 - Continuous investment in customer relations

Push

Wholesalers

Installers / Planners

Showrooms / Architects / DIY / General contractors / Investors

End consumers

"Technical" Pull		"Showroom" Pull		consumer" Pull
				"End

Market activities 2019 - Example Germany

• Customer Visits
• • "Push": 7'100
  • "Technical Pull": 53'500
  • "Showroom Pull": 7'400
• 334 events with 21'100 customers
• 495 in-house trainings with 9'400 customers
• Customer service: 274'000 calls, emails and chats

Geberit sales force

SLIDE 4

ANALYST CONFERENCE - FY 2019 MARCH 10, 2020

Sales & marketing 2019 - Example of customer events in Germany

"Geberit NeuheitenTreff" ("Technical" Pull)

• 49 events in urban areas with 12'800 customers
• 285 events in rural areas (Geberit on Tour) with 8'300 customers
• Networking platform for investors, architects, planners, wholesalers and installers with focus on rebranding and new products

"Geberit @ Vitra" ("Showroom" Pull)

• 5 exclusive VIP events with 100 top key decision makers and journalists including Geberit AquaClean WC-lounge
• Focus on Geberit ONE (first integrated product series), rebranding and design competence (Design Meets Function)

SLIDE 5

ANALYST CONFERENCE - FY 2019 MARCH 10, 2020

Marketing 2019 - Expenditure

Marketing expenditure

CHF million

		108	112	118
	105
98	26

Digital

Others

% of net sales

• Continuous investments in customer relations and brand reputation

• Extraordinary cost of CHF 10 million for replacement of Keramag brand

• CHF 26 million or 22% of total marketing spend for digital tools and digital channels

2015	2016	2017	2018	2019
3.8%	3.7%	3.7%	3.6%	3.8%

SLIDE 6

ANALYST CONFERENCE - FY 2019 MARCH 10, 2020

Marketing 2019 - Examples of digital activities for professionals

Geberit Pro app

• Mobile app for on-site installation support
• Relaunch with upgraded functionalities, additional content, and new look and feel
• New functionality: Automated product identification based on artificial intelligence

SuperTube dimensioning tool

• Web-basedcalculation tool to plan and dimension SuperTube drainage system
• Rolled out in international markets

Building Information Modelling (BIM)

• Product data for Geberit assortment behind the wall available in BIM format
• Plug-infor Autodesk BIM software ensuring up-to-date BIM data via real-time connection to Geberit product information system

SLIDE 7

ANALYST CONFERENCE - FY 2019 MARCH 10, 2020

Marketing 2019 - Examples of digital activities for end-consumers

Digital end-consumer campaign

• Targeted B2C campaign "Better Bathrooms, Better Lives"
• Online videos, banners, Google search, editorial content

• Launched in DE, CH, AT

Integrated website with B2C section

• Enriched Geberit website with inspirational B2C content
• Digital tools (inspiration tool, 3D planner) to support pull to end-consumers
• Rolled out in DE, CH, AT

B2C CRM system

• Cloud-basedtool for systematic management of end-consumer leads
• Rolled out in DE, CH, AT, UK

SLIDE 8

ANALYST CONFERENCE - FY 2019 MARCH 10, 2020

Innovation 2019 - Continuous strengthening of innovation pipeline

R&D expenditure

CHF million

63	72	78	78	77

Pre Sanitec integration Post Sanitec integration

% of net sales

• Continuously high investments in innovation pipeline

2.4%

2.6%

2.7%

2.5%

2.5%

R&D performance

# new patents

				46
	24	32	32	29

• R&D expenditure of 2.5% of net sales in 2019
• Number of patents remains on high level after peak in 2018 driven by combined innovations behind and in front of the wall

2015

2016

2017

2018

2019

SLIDE 9

ANALYST CONFERENCE - FY 2019 MARCH 10, 2020

Innovations 2019 - New product introductions

Geberit ONE		DuoFresh module

New bathroom series	Odour extraction and
combining knowhow	hygienic flushing water
behind and in front of the	for WC

wall
"The best of both	"For freshness in the
worlds"	bathroom"

AquaClean Sela

New mid-level shower toilet with focus on design and hygiene

"The design shower

toilet for every

bathroom"

SuperTube

Flow optimised drainage fittings to ensure a continuous air column in stacks

"The space gaining

system"

SLIDE 10

ANALYST CONFERENCE - FY 2019 MARCH 10, 2020

CAPEX 2019

CAPEX
CHF million				+3.1%
		159	162	167
147		16%
139
				44%
				40%
2015	2016	2017	2018	2019
5.7%	5.0%	5.5%	5.3%	5.4%

New products

Modernisation & rationalisation

Capacity expansion % of net sales

• 2019 capital expenditures +3.1% above prior year
• Increased spend for modernisation & rationalisation as part of continuous improvement program
• Stable investment rate of ~5.5% of net sales since 2015

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ANALYST CONFERENCE - FY 2019 MARCH 10, 2020

Investments 2019 - Examples capacity expansion & efficiency increase

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

• Capacity expansion of second fully automated feet assembly unit for installation frame
• Further automation
• CAPEX: EUR 1.4 million (2019)
• Payback of 3.4 years

Capacity expansion & efficiency increase of factory in Jona (CH)

• Additional automated packing line for actuator plates with improved efficiency
• Further automation
• Doubling of capacity
• CAPEX: EUR 1.7 millions (2019)

SLIDE 12

ANALYST CONFERENCE - FY 2019 MARCH 10, 2020

Continuous productivity improvements - Metal and plastics plants

Production volume1 and productivity2, indexed (2014 = 100)

Volume1 Productivity2

			115	121	126
		112
	108
100
100
2014	2015	2016	2017	2018	2019

• Productivity improvement of +4.7% in 2019
• Average productivity gain of +5.2% p.a. since 2014
• Key drivers
• • Process improvements
  • Automation

1 Industrial minutes

2 Industrial minutes per working hour

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ANALYST CONFERENCE - FY 2019 MARCH 10, 2020

Employees 2019 - Stable number of employees

Number of employees, in FTE

Total variance: -11 FTEs (-0.1%)

11'630

11'619

17

-83	-4
59

End 2018

Production

SG&A

R&D

Apprentices

End 2019

• Slight reduction of production employees due to efficiency improvements
• Increase in Sales & Marketing driven by growth and digital initiatives
• Increase of apprentices in order to increase the pool of qualified professionals for the future

SLIDE 14

ANALYST CONFERENCE - FY 2019 MARCH 10, 2020

Sustainability 2019 - Relative environmental impact reduced by -28% since Sanitec integration

Environmental impact 2015-2019, in UBP1 million

Sanitec

249 239 230 220 212

-28%

2015

2016

2017

2018

2019

Environmental impact in relation to net sales (c.a.) in % (index: 2015 = 100)

• Relative environmental impact 2019: -6.9%
• Absolute energy consumption 2019: -3.5%
• Relative environmental impact since Sanitec integration in 2015: -28%

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

SLIDE 15

ANALYST CONFERENCE - FY 2019 MARCH 10, 2020

Sustainability 2019 - Relative CO2 emissions reduced by -26% since Sanitec integration

CO2-emissions2015-2019, in thousand tonnes

Sanitec

258 250 243 231 223

-26%	• Absolute CO2 emissions 2019: -3.8%

• CO2 emissions since 2015: -35'000 tonnes

• CO2 emissions in relation to net sales since Sanitec Integration in 2015: -26%

2015

2016

2017

2018

2019

CO2-emissions in relation to net sales (c.a.) in % (index: 2015 = 100)

SLIDE 16

ANALYST CONFERENCE - FY 2019 MARCH 10, 2020

Example of sustainability projects

Energy saving and CO2 reduction in ceramic plants

• Tunnel kilns responsible for large part of energy consumption
• Modification of kilns with newest burner technology resulting in >20% energy savings per kiln with a payback of 3 years
• Reduction of 27.5 GWh combustibles and 6'500 tons of CO2 p.a.

Intelligent use of waste heat

• Using existing waste heat to pre-heat plastic granulates for injection molding processes
• Annual saving of 0.4 GWh electricity in production plant in Pfullendorf (DE)
• Corresponds to the average electricity consumption of 65 households p.a.

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ANALYST CONFERENCE - FY 2019 MARCH 10, 2020

Social responsibility 2019

Support of disabled and long-term unemployed

• Sourcing of services and products from workshops for disabled and long-term unemployed
• Assembly and packaging work totalling around CHF 8 million

Social project with Geberit apprentices in Cambodia

• Renovation of the sanitary facilities in two schools in Siam Reap province
• Geberit apprentices from Germany, Austria and Switzerland working on site

Volunteer project in Nepal

• 16 Geberit employees from Nordic countries working together with local people to build a water supply system in a village in Western Nepal
• Co-operationwith Swiss NGO Helvetas

SLIDE 18

ANALYST CONFERENCE - FY 2019 MARCH 10, 2020

Agenda

Review	C. Buhl
Sales development	C. Buhl
Financial results	R. Iff
Building construction outlook	C. Buhl
Geberit outlook	C. Buhl
Summary	C. Buhl

SLIDE 19

ANALYST CONFERENCE - FY 2019 MARCH 10, 2020

FY 2019 - Net sales growth in local currency of +3.4%

CHF million

Total: CHF +2 million (+0.1%)

+104-102

	3′081		3′083

Net sales	Growth in local currency	Currency	Net sales
FY2018		effect	FY2019
	+ 3.4%	- 3.3%

SLIDE 20

ANALYST CONFERENCE - FY 2019 MARCH 10, 2020

Net sales 2019 - Quarterly growth rates

Quarter	Net sales	Variance to prior year
CHF million	% CHF	% c.a.
Q1	830	0.9%	3.6%
Q2	797	-1.3%	2.6%
H1	1'627	-0.2%	3.1%
Q3	754	1.8%	5.5%
Q4	702	-1.1%	1.9%
H2	1'456	0.4%	3.7%
Full year	3'083	0.1%	3.4%

Comment

• Quarterly volatility driven by
• • # of working days
  • Base effects and one-time effects
• Fundamental growth relatively stable

SLIDE 21

ANALYST CONFERENCE - FY 2019 MARCH 10, 2020

Sales 2019 - Net sales growth in all regions

Share of net sales and currency adjusted growth 2019 by region, %

America

(3% of net sales)

+0.5%

Europe (91% of net sales)

+3.4%

Middle East / Africa

(3% of netsales)

+1.3%

Total +3.4%

Far East / Pacific

(3% of net sales)

+9.0%

SLIDE 22

ANALYST CONFERENCE - FY 2019 MARCH 10, 2020

Sales 2019 - Development in European countries / regions (1/2)

Country / Region		Net sales		Variance to PY
	CHF million
			% CHF		% c.a.
Germany	928	-0.6%	3.2%

Comment

• Limited growth due to bottleneck of qualified installers
• Above market growth driven by upselling strategy and new product introductions

Eastern Europe	305	-0.8%	2.9%	•	Mixed market environment
• Strong growth in Installation & Flushing Systems
				• Growth in all countries
Nordic Region	303	-2.7%	2.6%	•	Strong growth in Installation- & Flushing and Piping
					Systems
				• Market running on high level
Switzerland	294	3.9%	3.9%	•	Strong market outperformance driven by all product
					areas
Benelux	261	3.5%	7.4%	•	Positive market environment
•	Strong market outperformance in Netherlands and

Belgium

SLIDE 23

ANALYST CONFERENCE - FY 2019 MARCH 10, 2020

Sales 2019 - Development in European countries / regions (2/2)

Country / Region

Italy

France

Austria

UK/Ireland

Iberian Peninsula

Net sales		Variance to PY
CHF million		% CHF		% c.a.
211	-2.5%	1.3%
180	-4.0%	-0.4%
173	1.3%	5.2%
114	2.3%	5.3%
25	1.1%	4.9%

Comment

• Slow market due to weak economy
• Sales decline in Bathroom Systems due to phase out of local ceramics brand as of 2020
• Stagnating market
• Strong growth in Installation & Flushing Systems
• Exit of low margin ceramics business
• Positive construction market with slight growth
• Market outperformance in all product areas
• Declining market due to weak non-residential sector
• Market outperformance driven by strong growth in Piping Systems
• Ongoing market recovery
• Sales growth in Spain and Portugal

SLIDE 24

ANALYST CONFERENCE - FY 2019 MARCH 10, 2020

Sales 2019 - Development in international regions

Country / Region

Far East / Pacific

Net sales		Variance to PY		Comment
CHF million
	% CHF		% c.a.
						• Mixed market environment across the region, moderate
106	6.5%	9.0%		increase in China and India but declining in Australia
	• Double digit sales growth in China

America

Middle East / Africa

102

2.1%

0.5%

82 -2.1% 1.3%

• Weaker than expected institutional market sector
• Strong growth with electronic faucets
• Challenging market environment across the region
• Strong growth in Southern Africa and sales decline in the Gulf region

SLIDE 25

ANALYST CONFERENCE - FY 2019 MARCH 10, 2020

Sales 2019 - Development by product areas

		Net sales		Variance to PY
		CHF million		% CHF		% c.a.
Installation &		1'145	1.1%	4.5%
Flushing Systems

Piping Systems	949	2.2%	5.8%

Bathroom	989	-3.0%	0.0%
Systems

Comment

• Strong growth with "Behind-the-wall"- flushing systems
• Strong growth in Supply Piping and Drainage Piping Systems
• Weak market environment in the Nordics
• Phase out of selected local brands
• Exit of low margin ceramics business in France

SLIDE 26

ANALYST CONFERENCE - FY 2019 MARCH 10, 2020

Agenda

Review	C. Buhl
Sales development	C. Buhl
Financial results	R. Iff
Building construction outlook	C. Buhl
Geberit outlook	C. Buhl
Summary	C. Buhl

SLIDE 27

ANALYST CONFERENCE - FY 2019 MARCH 10, 2020

Key figures 2019

CHF million	2019	2018	% YoY
Net sales	3'083	3'081	0.1%
EBITDA	904	868	4.2%
Margin	29.3%	28.2%
Adj. EBIT	757	744	1.7%
Margin	24.5%	24.2%
EBIT	757	708	6.9%
Adj. net income	647	626	3.3%
Margin	21.0%	20.3%
Net income	647	597	8.3%
Adj. EPS (CHF)	17.97	17.21	4.4%
EPS (CHF)	17.97	16.40	9.6%
Free cashflow	644	582	10.7%
Margin	20.9%	18.9%

• Improved operational profitability despite significant tariff increases due to
• • Sales price increases
  • Volume growth and improved product mix
  • Lower raw material prices
  • Efficiency and improvement projects
  • Cost discipline
• Very strong free cashflow growth
• YoY growth negatively impacted by currency translation effect
• Positive impact on EBITDA margin due to new IFRS 16 standard (+60 bps)

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ANALYST CONFERENCE - FY 2019 MARCH 10, 2020

Income statement 2019

CHF million	2019	%	2018	%	% YoY
Net sales	3'083	100.0%	3'081	100.0%	0.1%
Cost of materials	860	27.9%	893	29.0%	-3.7%
Personnel expenses	752	24.4%	744	24.2%	1.1%
Depreciation	127	4.1%	105	3.4%	21.3%
Amortisation of intangibles	20	0.6%	55	1.8%	-63.9%
Other operating expenses, net	567	18.4%	576	18.7%	-1.5%
Total operating expenses, net	2'326	75.5%	2'373	77.0%	-2.0%
Operating profit (EBIT)	757	24.5%	708	23.0%	6.9%
EBITDA	904	29.3%	868	28.2%	4.2%
Adj. operating profit (adj. EBIT)	757	24.5%	744	24.2%	1.7%

SLIDE 29

ANALYST CONFERENCE - FY 2019 MARCH 10, 2020

EBITDA margin 2019 - Profitability on high level

+1.4%

-1.6%

29.3%

+0.6%

+0.8%

28.2%

-0.1%

EBITDA

Volume and

Price effects,

Other cost

Currency effect

IFRS 16

EBITDA

margin FY 2018 product mix effect

net

effects

margin FY 2019

• Positive impact from volume and product mix effect
• Positive net price effect due to price increases and lower raw material prices
• Negative other cost effects driven by strong tariff increases and higher marketing expenses
• Neglectable currency effect on margins due to natural hedge
• Positive IFRS 16 impact on EBITDA margin

SLIDE 30

ANALYST CONFERENCE - FY 2019 MARCH 10, 2020

Net income and EPS 2019 - Above prior year's adjusted levels

CHF million	2019	%	2018	%	% YoY
Operating profit (EBIT)	757	24.5%	708	23.0%	6.9%
Financial result, net	-14	-0.4%	-20	-0.7%	32.4%
Profit before income tax expenses	743	24.1%	687	22.3%	8.1%
Income tax expenses	96	3.1%	90	2.9%	6.6%
in % pre-tax profit	12.9%		13.1%
Net income	647	21.0%	597	19.4%	8.3%
EPS (CHF)	17.97		16.40		9.6%
Adj. net income	647	21.0%	626	20.3%	3.3%
Adj. EPS (CHF)	17.97		17.21		4.4%

SLIDE 31

ANALYST CONFERENCE - FY 2019 MARCH 10, 2020

Free cashflow 2019 - Strong increase of free cashflow

CHF million	2019	2018	% YoY
EBITDA	904	868	4.2%
Changes in net working capital from operating core activities	1	-19
Changes in the other positions of the net working capital	11	8
Changes in provisions	-4	-12
Income taxes paid	-89	-103
Other non-cash income and expenses	11	5
Net cash from operating activities	834	748	11.6%
in % net sales	27.1%	24.3%
Purchase of PP&E and intangible assets, net	-164	-154
Repayments of lease liabilities	-16
Interest and other financing cost paid, net	-10	-12
Free cashflow	644	582	10.7%
in % net sales	20.9%	18.9%

SLIDE 32

ANALYST CONFERENCE - FY 2019 MARCH 10, 2020

Balance sheet 2019

CHF million	31.12.2019	31.12.2018
Cash and short-term investments	428	282
Net working capital	202	206
Property, plant and equipment	920	829
Deferred tax assets	125	92
Other non-current assets and non-current financial assets	38	37
Goodwill and intangible assets	1'597	1'652
Total assets	3'725	3'502
Debt	837	837
Accrued pension obligations	331	292
Tax liabilities	186	172
Other non-current provisions and nun-current liabilities	57	53
Equity	1'899	1'745
Equity ratio	51.0%	49.8%
Net debt	409	555
Net debt / EBITDA	0.5	0.6
ROIC	23.1%	22.6%

SLIDE 33

ANALYST CONFERENCE - FY 2019 MARCH 10, 2020

Dividend Ex 2019 - Proposed increase of +4.6%

CHF thousand	2019	2018
Net income Geberit AG	549'800	480'166
Balance brought forward	10'211	2'563
Total available earnings	560'011	482'729
Transfer to free reserves	150'000	80'000
Proposed / paid dividend	409'9291	393'518	2
Balance to be carried forward	82'359	10'211
Total appropriation of available earnings	560'011	482'729

• The Board of Directors proposes to the Geberit AG annual general meeting on April 1, 2020 a dividend of CHF 11.30 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.

• Dividend of CHF 10.80 per share

SLIDE 34

ANALYST CONFERENCE - FY 2019 MARCH 10, 2020

Balance Sheet Policy supports shareholder friendly distribution policy

Balance Sheet

Policy

Share Buy Back

Maintain debt financing on current level

• Accept a net debt / EBITDA ratio of max. 1.0x
• Refinance bonds as they become due
• Use revolving credit facility more intensively to deal with volatility of working capital and cash levels
• Reduce cash balance to a minimum to avoid negative interest payments

New Share buy back program under preparation

• Maximum volume: CHF 500 million
• Execution period: 2 years
• Start: End of Q2 or Q3 2020

SLIDE 35

ANALYST CONFERENCE - FY 2019 MARCH 10, 2020

Free cashflow and distribution to shareholders

Free cashflow, CHF million

2'743

484	557	476	582	644

Average FCF margin 2015- 2019 in % of net sales: 18.9%

2015	2016	2017	2018	2019	Total
18.7%	19.8%	16.4%	18.9%	20.9%	18.9%

Distribution to shareholders, CHF million

Share buyback Dividend payments

2'293

535

471	360	460	566	436	1'758

Average distribution to shareholders 2015-2019 in % of free cashflow: 84%

2015	2016	2017	2018	2019	Total
97%	65%	97%	97%	68%	84%

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ANALYST CONFERENCE - FY 2019 MARCH 10, 2020

Agenda

Review	C. Buhl
Sales development	C. Buhl
Financial results	R. Iff
Building construction outlook	C. Buhl
Geberit outlook	C. Buhl
Summary	C. Buhl

SLIDE 37

ANALYST CONFERENCE - FY 2019 MARCH 10, 2020

Building industry outlook

• Increased geopolitical risks creating more uncertaintiesand volatility in the global economy

• Impact of Corona Viruson global economy difficult to assess

• Market outlook difficult and unsecure - especiallyfor highinfection regions like China or Italy

• Our market outlook is based on followingassumptions

 Corona Virus with no long lasting impact on broadereconomy

• Building construction industry more resilient compared to other sectors

SLIDE 38

ANALYST CONFERENCE - FY 2019 MARCH 10, 2020

Construction market Europe - Decreasing residential building permits

Number of residential building permits in Europe

• vs PY period
  13.3%

9.1%

2.3%

-1.2%

2016 2017 2018 9M2019

• 2019 - first decreasing building permits since 2013
• Further slowdown of new residential segment
• Robust renovation segment partially compensating weaker new build

Source: Eurostat, European Union - 28 countries

SLIDE 39

ANALYST CONFERENCE - FY 2019 MARCH 10, 2020

Building industry outlook - Europe

Mixed construction market environment

• Confident about demand in Germany - limited qualified installation capacity remains a bottleneck
• Switzerland with a slightly declining market
• Nordic Region at best stagnation - modest growth in Denmarkand Norway, decline inSweden and Finland
• Mixed picture in Eastern Europe with a positivemarket in Poland, stagnationin Russiaand challenging inTurkey

• Positive environment in Benelux - solid growth in Belgium and a flattish marketinNetherlands

• Italy - unpredictable due to Corona Virus uncertainties

• Stagnation in France due to a declining residential new built segment

• Positive construction market with slight growth in Austria

• Stabilisation in the United Kingdom

• Ongoing recovery on Iberian Peninsula but at a lower pace than in previous years

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ANALYST CONFERENCE - FY 2019 MARCH 10, 2020

Building industry outlook - Rather stable despite increased geopolitical risks

Europe

Slowdown of residential new built

North America	Middle East / Africa	Asia Pacific
Slightly declining institutional	Weak environment in Gulf and	Mixed picture across the region,
and commercial sector	difficult in South Africa	no predictability in China due to
		Corona Virus

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ANALYST CONFERENCE - FY 2019 MARCH 10, 2020

Agenda

Review	C. Buhl
Sales development	C. Buhl
Financial results	R. Iff
Building construction outlook	C. Buhl
Geberit outlook	C. Buhl
Summary	C. Buhl

SLIDE 42

ANALYST CONFERENCE - FY 2019 MARCH 10, 2020

Product introductions 2020 - Bathroom Systems

Geberit ONE extension:

• New bidet with height adjustment
• Easy to clean; no overflow hole and KeraTect surface coating
• Easy installation with bayonet gear

Modernized Renova:

• Design update for one of the most successful bathroom series
• Modern widely accepted design with long-lasting life cycle
• "The proven standard" in sanitary ware for architects and planners in an updated look

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ANALYST CONFERENCE - FY 2019 MARCH 10, 2020

Product introductions 2020 - Installation & Flushing and Bathroom Systems

New actuator plates:

• More flexibility in colours and materials
• Anti fingerprint effect
• Full compatibility and retrofittable until 2002

CleanLine80:

• New upper market shower channel solution
• Highly elegant look
• Also available in metallic trend colours

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ANALYST CONFERENCE - FY 2019 MARCH 10, 2020

Product introductions 2020 - Piping Systems

Pipe scraper:

• Pipe scraper for faster welding process for drainage pipes
• Time saving: 10s / scrape
• Easy handling; use with cordless drill
• For all pipes & fittings of Geberit PE & Silent-db20

Pluvia fastening system:

• Additional support of Pluvia fastening system in situations with high suspension of fastening rail from ceiling
• Increased safety and stability of the Geberit Pluvia system
• Easy system for safe installation

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ANALYST CONFERENCE - FY 2019 MARCH 10, 2020

Investments 2020 - Capacity expansion & efficiency increase

Capacity expansion & efficiency increase of factory in Villadose (I)

• Additional extrusion line for Silent-PP pipes with automated short pipes packaging system
• CAPEX: EUR 4.4 million (2019 and 2020)
• Payback of 4.0 years

Renewal of stainless steel production lines in Langenfeld (DE)

• Renewal of machinery / tools and efficiency improvement
• Start of production as of 2021
• CAPEX: EUR 10 million (2020/21)

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ANALYST CONFERENCE - FY 2019 MARCH 10, 2020

Investments 2020 - Productivity & efficiency increase in ceramics plants

Productivity and efficiency increase with lean and high automated Line in Slavuta (UA)

• New machines, HP casting, robots, drying chamber, glazing unit and intralogistics
• CAPEX: CHF 3 million (2020-2021)

Technology change and high automation in Kolo (PL)

• New machines, HP casting, robots, drying chamber, glazing unit and intralogistics
• CAPEX: CHF 5 million (2020-2021)

Volume increase and new mould making centre in Ekenäs (FIN)

• New machines, HP casting, robots, drying chamber, glazing unit and intralogistics
• New mould making department for HPC
• CAPEX: CHF 5.5 million (2020-2021)

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Marketing outlook 2020 - Brand portfolio simplification

20192020

20202020

• Phase-outof 3 ceramic brands (Sphinx, Allia, Pozzi-Ginori) and replacement with Geberit brand in 2020
• Key benefits
• • Improved customer support
  • Simplified cross- and upselling
  • Reduced complexity in operations and logistics
  • More capacity for development of new products
• One-timemarketing cost of CHF 10 million each in 2019 and 2020

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Digitalisation outlook 2020 - Further investments in key areas

Additional Digitalisation efforts 2020

• Strengthening of dedicated team for digital products incl. infrastructure build-up

• Increased yearly spending of CHF 15

• Extension of capacity for product datamillion as of 2020 creation and customization

• Mainly personnel cost and OPEX

• Additional IT capacity mainly for sales & marketing and product management

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Outlook 2020 - Impact of Corona Virus on Geberit

• No material impact on Geberit business so far
• • 2 weeks production stop in two Chinese plants - running at full capacity again as of mid of March
  • Temporary production stop of shower toilet "Mera" - re-start and ramp-up as of mid of March
  • All other production sites and supply chain currently running at normal level
• Several health measures in line with local health authorities and additional business contingency measures implemented
• Outlook
• • Q1 2020: Currently, negative sales impact from production stop in China and Mera expected (< CHF 10 million)
  • FY 2020: Currently, no material impact on business expected

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Agenda

Review	C. Buhl
Sales development	C. Buhl
Financial results	R. Iff
Building industry outlook	C. Buhl
Geberit outlook	C. Buhl
Summary	C. Buhl

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Summary - Geberit with a very good year 2019

• Convincing net sales growth in local currencies
• Strong bottom-line results
• Further improved profitability despite strong wage inflation and extra-ordinary marketing costs
• Various efficiency projects, high cost discipline and pricing power
• Important new products introduced in all product areas
• Continued significant investments in operational assets and digitalisation
• Strong, double digit growth of free cashflow to new record level

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Summary - Outlook 2020

• Corona Virus make a market outlook difficult and unsecure
• However, building construction industry expected to be more resilient compared to other sectors
• Significant wage inflation from labour tariffs increases - similar as in 2019
• Short-term,decreasing raw material prices in Q1 2020 expected (versus Q4 2019)
• Key priorities for Geberit 2020
• • Simplification of brand portfolio by replacing three further ceramics brands by Geberit
  • Further strengthening of digitalisation efforts with dedicated initiatives
  • Focus on various efficiency projects and strict cost discipline to mitigate wage inflation

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Summary - Strong fundamentals delivering industry leading results

• Focused strategy with execution capabilities
• Decision maker oriented business model
• Innovation & sustainability focus
• Efficiency focus with continuous investments
• Functional and lean organisation
• Strong, down-to-earth company culture

Net sales growth		EBITDA margin		CO2 emissions
(c.a./org)				(relative to net sales)
+4.1%		28.5%		-26%
CAGR 2016-19		Avg. 2016-19*		2016-19
ROIC		Free cashflow margin		Patents (#)
22.4%		19.0%		139
Avg. 2016-19*		Avg. 2016-19		Total 2016-19

* adjusted figures for 2016-2018

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Important dates in 2020

•	April 1, 2020	•	Annual general meeting
•	April 7, 2020	•	Dividend payment
•	April 30, 2020	• Interim report first quarter 2020
		• Media release and conference call
•	August 18, 2020	• Information on the half-year results 2020
		• Media release and conference call
•	October 29, 2020	• Interim report third quarter 2020
		• Media release and conference call

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Appendix - Historical sales vs. net sales

Sales growth (c.a./org)
									14.4%
9.6%							8.9%			11.4%				9.5%						• Reporting on sales till
			6.4%										6.4%				2014 before switching to
	3.0%		4.8%		5.0%		3.2%		5.0%		4.5% 3.6%	3.5%			net sales reporting
			-1.0%
												-6.5%
Net sales growth (c.a./org)
									13.4%1
9.4%1					9.3%1		11.5%1			8.9%
		6.1%	1								5.9%			6.4%
				3.8%1		4.8%1		3.4%		4.9%		4.2%				3.5% 3.1% 3.4%
	3.3%	1							3.1%	2.7%	4.7%				4.1%
		-1.5%1
												-6.8%
1999	00		01	02		03	04	05	06	07	08	09	10	11	12	13	14	2015		2016	17	18	2019

1 Figures are calculated assuming a fixed currency and M&A effect for the years 1999 to 2007 and a reallocation of transport costs for net sales figures before 2006

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MARCH 10, 2020

Disclaimer

While Geberit is making great efforts to include accurate and up-to-date information, we make no representations or warranties, expressed or implied, as to the accuracy or completeness 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.

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