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Geberit share information
Share price performance in the year under review
In 2012 the price of the Geberit share benefited substantially from the favorable climate on the equity markets. Beginning the year at CHF 181.00, the share price mostly kept pace with the benchmark indices in the first half-year. Admission to the Swiss Market Index (SMI) bolstered the price substantially as of May – in particular following the announcement of definitive admission at the beginning of June – as was reflected in considerably higher daily trading volumes. From mid-year the positive mood on the stock markets led to a steady upward trend that received additional support from Geberit's gratifying half-year figures. This phase came to an abrupt end when the figures for the third quarter were published at the end of October, signaling a more cautious outlook for the year as a whole. Within the space of a few days the Geberit share lost almost 10% of its value, but made a clear recovery by the end of the year, closing at CHF 201.40. This corresponds to a rise of 11.3% compared with the end of the previous year. In the same period the SMI posted a slightly stronger performance, advancing by 14.9%. Viewed over the past five years, the Geberit share posted an annual average increase in value of 5.3% (SMI: -4.3%). The Geberit Group’s market capitalization reached CHF 7,819 million at the end of 2012.
The Geberit shares are listed on the SIX Swiss Exchange, Zurich.
At the end of 2012, the free float as defined by SIX was 100%.
Given a normal market environment, Geberit can achieve solid free cashflows, which are either used to pay back debts, applied toward 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.
Over the last five years, around CHF 1.8 billion has been paid out to shareholders in the form of distributions or share buybacks. During the same period, the price of Geberit shares has risen from CHF 155.50 at the end of 2007 to CHF 201.40 at the end of 2012.
The Board of Directors will propose to the General Meeting of Geberit AG on April 4, 2013 a distribution of CHF 6.60, an increase of 4.8% over that of 2012. As such, the shareholder-friendly distribution policy will be continued. CHF 2.80 of the distribution will be paid out as in the previous year, in the form of a tax-exempt payment to shareholders taken from reserves from capital contribution, and CHF 3.80 as a regular dividend. The payout ratio of 63.6% of net income is in the upper range of the 50 to 70% corridor, which was increased by the Board of Directors as a result of the reassessment of the use of liquid funds at the beginning of 2011.
Subject to the shareholders’ approval, the distribution will be paid on April 11, 2013.
The share buyback program launched by the Board of Directors of Geberit AG at the beginning of 2011 was concluded on December 20, 2012, earlier than planned. In total, 2,048,578 registered shares – in the amount of CHF 390,172,725 and corresponding to 5.28% of the share capital currently registered in the Commercial Register – were repurchased as originally planned. The share buyback program was conducted via a second trading line set up especially for this purpose. The average purchase price per share was CHF 190.46.
The General Meeting of April 4, 2012 approved a capital reduction in the amount of the shares repurchased in 2011. The 1,026,000 shares were canceled with effect from June 29, 2012 following expiry of a two-month deadline and the publication of three notices to creditors in the Swiss Commercial Gazette. The shareholding registered in the Commercial Register now stands at 38,821,005 shares. With regard to the remaining 1,022,578 shares repurchased in 2012, it is planned to propose a capital reduction and the subsequent cancellation of the shares to the General Meeting on April 4, 2013.
Geberit simultaneously publishes current and comprehensive information for all market participants and interested parties on the Internet (→ www.geberit.com), including ad-hoc announcements. Among other things, the current version of the investor presentation is available on the Internet at any time. In addition, interested parties may add their names to a mailing list (→ www.geberit.com/mailinglist) in order to receive the most recent information relating to the company.
CEO Albert M. Baehny, CFO Roland Iff and Head of Corporate Communications & Investor Relations Roman Sidler are in charge of the ongoing communication with shareholders, the capital market and the general public. Contact details may also be found on the Internet 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.
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