Share price performance in the year under review
The development of the Geberit share price in 2015 was shaped by the abandonment of the minimum exchange rate by the Swiss National Bank as well as by the first-time consolidation of Sanitec. Beginning the year at CHF 338.40, the share price dropped significantly in mid-January in line with the market before rallying to reach an all-time high of just over CHF 370 by mid-March. The Geberit share subsequently performed slightly weaker than the market, in a downwards trend dropping to around CHF 290, before a disproportionate recovery in the fourth quarter saw it close the year at CHF 340.20. Overall, this corresponds to a slight increase of 0.5% in 2015. In the same period, the SMI dropped by 1.8%. Viewed over the past five years, the Geberit share posted an annual average increase in value of 9.5% (SMI: +6.5%). The Geberit Group’s market capitalization reached CHF 12.9 billion at the end of 2015.
The Geberit shares are listed on the SIX Swiss Exchange, Zurich.
At the end of 2015, the free float as defined by SIX was 100%.
Distribution
Given a normal market environment, Geberit achieves solid free cashflow, which is invested in organic growth, used to repay debts, applied towards any acquisitions or distributed to shareholders. The capital structure is prudently maintained and the company strives for a solid balance sheet structure with a buffer of liquidity. On the one hand, this policy guarantees the financial flexibility necessary to achieve growth targets, and on the other hand it offers investors security. Surplus liquid funds are distributed to shareholders. Geberit continued this shareholder-friendly distribution policy last year as well. This is also expected to continue unchanged following the acquisition of Sanitec.
Over the last five years, around CHF 1.9 billion has been paid out to shareholders in the form of distributions or share buybacks. During the same period, the price of the Geberit share has risen from CHF 216.20 at the end of 2010 to CHF 340.20 at the end of 2015.
Despite a drop in net income (adjusted for costs in connection with the Sanitec acquisition), the Board of Directors will propose to the ordinary General Meeting of Geberit AG on 6 April 2016 a dividend of CHF 8.40, an increase of 1.2% over that of 2015. The payout ratio of 63.3% of adjusted net income is in the upper range of the 50% to 70% corridor defined by the Board of Directors. Subject to the shareholders’ approval, the distribution will be paid on 12 April 2016.
The share buyback programme announced in March 2014 was launched on 30 April 2014. In the course of this programme, shares amounting to a total of a maximum of 5% of the share capital recorded in the Commercial Register were to be repurchased over a period of two years, less withholding tax, and cancelled by means of a capital reduction. The share buyback has been conducted via a separate trading line on the SIX Swiss Exchange. By 31 December 2015, 634,600 shares, which corresponds to around a third of the entire programme, had been acquired at a sum of CHF 205 million. The share buyback was suspended from July 2014 until March 2015 as a result of the ongoing Sanitec acquisition, which is why 2% of the share capital – or some 40% of the originally planned amount – were repurchased by the completion of the programme at the end of February 2016. A proposal will be submitted to the 2016 ordinary General Meeting to carry out a capital reduction in the amount of the total repurchased shares and to cancel the shares.
Communication
Geberit publishes current and comprehensive information simultaneously for all market participants and interested parties on the website ( www.geberit.com), including ad hoc announcements. Among other things, the current version of the investor presentation is available on the website at any time. In addition, interested parties may add their names to a mailing list ( www.geberit.com/download-centre/mailing-list/) in order to receive the most recent information relating to the company.
CEO Christian Buhl, CFO Roland Iff and the Head Corporate Communications & Investor Relations Roman Sidler are in charge of the ongoing communication with shareholders, the capital market and the general public. Contact details can be found on the website in the relevant sections. Information relating to Geberit is provided in the form of regular media information, media and analysts’ conferences, as well as financial presentations.
Contact may be established at any time at
corporate.communications@geberit.com
Comprehensive share information can be found at
www.geberit.com > investors > share information