Solid financial foundation with equity ratio of 75%

Once again, the substantial contribution from free cashflow allowed the attractive dividend policy to be continued while also maintaining the extremely solid financial foundation of the Group.

Total assets increased from CHF 2,007.4 million to CHF 2,226.0 million, mainly as a result of the higher cash reserve.

As neither shares were bought back nor debts repaid in contrast to previous years, the cash reserve increased substantially. In addition to liquid funds and marketable securities of CHF 612.8 million (previous year CHF 423.1 million), the Group had access to an undrawn operating credit line of CHF 198.3 million. At CHF 11.7 million, debts were slightly under the previous year’s value of CHF 14.7 million. This resulted in positive net cash of CHF 601.1 million at the end of 2013 (previous year CHF 408.4 million).

Net working capital decreased by CHF 6.5 million to CHF 127.9 million compared to the previous year. Property, plant and equipment strengthened from CHF 521.2 million to CHF 536.4 million, while goodwill and intangible assets increased from CHF 638.1 million to CHF 645.5 million.

The ratio of net cash to equity (gearing) increased from -28.5% in the previous year to -36.1%. The equity ratio further improved from a very solid 71.3% to 74.8%. Based on average equity, the return on equity (ROE) was 28.2% (previous year 27.7%). Average invested operating capital, comprising net working capital, property, plant and equipment, and goodwill and intangible assets amounted to CHF 1,366.0 million at the end of 2013 (previous year CHF 1,346.0 million). The return on invested operating capital (ROIC) was 32.1% (previous year 28.9%). For details on the gearing, ROE and ROIC calculations, please refer to the → Financial Statements of the Geberit Group, Notes to the Consolidated Financial Statements, 5. Management of Capital.

The Geberit Group held 212,382 treasury shares on December 31, 2013, which equals 0.6% of the shares entered in the Commercial Register. These treasury shares are mostly earmarked for share participation plans. With regard to the share buyback program concluded prematurely in December 2012, the General Meeting of April 4, 2013 approved a capital reduction in the amount of the shares repurchased in 2012. The 1,022,578 shares were canceled with effect from June 2013 following expiry of a two-month deadline and the publication of three notices to creditors in the Swiss Official Gazette of Commerce. The total number of shares entered in the Commercial Register now stands at 37,798,427 shares. The shares repurchased in 2011 as part of the share buyback program had already been canceled in 2012 by resolution of the General Meeting of April 4, 2012.