sulzer annual results presentation 2012

Sulzer Annual Results 2012

Strong double-digit growth in orders and record high sales

Annual Results Presentation 2012

February 15, 2013

Sulzer Annual Results 2012 | slide 2

THE SAFE HARBOR STATEMENT UNDER THE US PRIVATE

SECURITIES LITIGATION REFORM ACT 1995

This presentation may contain forward-looking statements, including but not limited to, projections of financial developments, market activities or future performance of products and solutions, containing risks and uncertainties. These forward-looking statements are subject to change based on known or unknown risks and various other factors, which could cause the actual results or performance to differ materially from the statements made herein.



Agenda

Business Performance

Update on Strategic Priorities

Financial Results

Outlook and Conclusion


Highlights 2012

Strong double-digit growth in order intake and sales

Stable profitability and substantial increase of cash flow

Further strengthening of global production and service network

Strategic priorities defined

Solid balance sheet remained

Increased dividend proposed

Outlook 2013: moderate growth of orders and sales; profitability to improve slightly

Solid performance and well positioned for the future



Key figures

in millions of CHF 2012 2011 % % adj.1

Order intake 4 023.4 3 566.1 +12.8% +3.9%

Order backlog (Dec 31) 1 829.2 1 864.0 –1.9%

Sales 4 021.6 3 577.9 +12.4% +4.1%

EBITDA 540.9 482.8 +12.0%

ROSDA (EBITDA in % of sales) 13.5% 13.5%

EBIT 409.5 364.1 +12.5%

ROS (EBIT/sales) 10.2% 10.2%

ROCE (EBIT/capital employed) 15.5% 18.8%

Net income attr. to shareholders 307.1 279.8 +9.8%

EPS (in CHF) 9.03 8.25 +9.5%

Free cash flow 347.9 82.4 –

Net liquidity (Dec 31) –95.9 –336.8 –

Employees (Dec 31) 17 936 17 002 +5.5%

1) Adjusted for currency effects as well as acquisitions and divestituresNote: Newly acquired Cardo Flow Solutions (herein after called wastewater pump business) consolidated as of August 1, 2011

Growth supported by acquisition and organic growth

Solid financials in a challenging environment

Strongly improved cash flow; net debt position reduced


Top-line development

Strong double-digit growth; sales at record level

4 023

3 566

2011 2012

Order intake(in millions of CHF)

1) Adjusted for currency effects as well as acquisitions and divestitures

Book-to-bill: 1.0

Order backlog:CHF 1829 million

Sales(in millions of CHF)

4 022

3 578

2011 2012

+13%nominal

(+4% adj.1)

+12%nominal

(+4% adj.1)



307280

2011 2012

Bottom-line development

Stable double-digit profitability; net income further increased

410

364

2011 2012

Operating income (EBIT)(in millions of CHF)

Net income attributable to Sulzer’s shareholders(in millions of CHF)

8.25 EPS 9.03in CHF

+13%nominal

+10%nominal

10.2% ROS 10.2%


Guidance check 2012

2012 results: delivered as promised

High single-digit growth

High single-digit growth

Guidance:

To remain double-digit

Achievements: Check:

+12% nominal

+13% nominal

10.2%

Orders

Sales

ROS Achieved

Achieved

Achieved



Krøger A/S

Acquisitions

Various acquisitions at various magnitudes in all four divisions in the last years

Latest additions were at the end of 2012/beginning of 2013:

Assets of the carbon business of Thermoset Inc. to complement Sulzer Metco’s high performance carbon-friction product line for the automotive business

Krøger, a transaction to complement Sulzer Chemtech’s product range in the dispenser business (Mixpac Systems)

2008 2009 2010 2011

TowerTech

Freeze Tech

Kühni

Select Trans-mission, Borg Warner assets

SAB

Preu

Sulzer India (taken private)

Dentaco

Dowding& Mills

DLC from Bekaert

Black Magic Crew (BMC)

Engenharia

Cardo Flow Solutions

Capime

2012

Hidrotecar

CGT Cold Gas Technology

Thermoset

Smaller bolt-on acquisitions in 2012

2013

Note: Dowding & Mills (Sulzer Turbo Services) and Cardo Flow Solutions (Sulzer Pumps) were of significant size; remaining acquisition of small- to midsized character

Monitoring the markets for further targeted acquisitions


Footprint changes in 2012

Decisions driven by market demand and strategic considerations

New production facility

Pump production facility in Kunshan, China opened to serve the local watermarkets

New service locations added

Brazil, Colombia, Russia, Singapore, South Korea, and Sweden

Other changes

Move of global headquarters of Sulzer Chemtech’s MTT1 business to Singapore

Additions from newly acquired companies

New pump production facility in Kunshan, China

Adding new service centers to increase customer proximity

1) Mass Transfer Technology



Major production and service facilities(not exhaustive, for illustration purpose only)

Global headquarters, Switzerland

Footprint

Truly global with a focus on market and customer needs

170 production and service sites serving the world


Geographical breakdown – share of sales

North America:25%

Central and South America:8%

Africa:3%

Asia, Australia:23%

Europe:37%

Balanced presence and strong positions in emerging markets

39% of sales in emerging markets

Middle East:4%



Market developments 2012 vs. 2011 – from a Sulzer viewpoint

Oil and Gas Power Water

TransportationGeneralindustry

Growth onhigh level

Moderate growthon low level

Note: Arrows indicative and for illustration purpose only

Growth

Moderate growthon high level

FlatMixed picture


Markets – share in sales

Oil and Gas Power Water

Transportation General industry

Upstream, pipelines, downstream Production and transport, wastewater

Automotive, aviation, rail, shipping

Conventional, renewable

Pulp and paper, mining, dental, other

40%(39%)

Sales share2012 (2011)

15%(18%)

12%(8%)

9%(10%)

24%(25%)


Market leader in pump technology and solutionsSulzer Pumps

Main markets

Oil and gas (upstream, midstream and downstream)

Water (production and transport, wastewater)

Power generation

Main products

Engineered pumps

Configured pumps

Associated services


Sulzer PumpsKey figures


Order intake 2 094.3 1 705.6 +22.8% +7.1%

Order backlog (Dec 31) 1 309.1 1 343.5 –2.6%

Sales 2 097.5 1 747.8 +20.0% +5.9%

EBITDA2 245.9 210.2 +17.0%


EBIT3 191.2 168.2 +13.7%

ROS (EBIT in % of sales) 9.1% 9.6%

ROCE (EBIT in % of capital employed) 13.1% 20.5%

Employees (Dec 31) 8 573 8 211 +4.4%

1) adjusted for currency effects as well as acquisitions and divestitures2) including non-recurring costs of CHF 7 million (2011: CHF 30 million) for acquisition of wastewater pump business3) including non-recurring costs of CHF 7 million (2011: CHF 30 million) and amortization charges for intangibles

of CHF 22 million (2011: CHF 9 million) for acquired wastewater business4) excluding 0.5-percentage-point higher corporate fees charged to divisions in 2012 compared with 2011 achievements

ROS 9.1% | 9.6%4

StableROCE 13.1%Value creating

Sales +20%Strong increase

| 9.6%4



1817 1857

1576

1748

2098

9.6%

12.0%

9.1%

12.8%

11.0%

2008 2009 2010 2011 2012

Sales ROS in %

1) Excluding 0.5-percentage-point higher corporate fees charged to divisions

Sulzer PumpsBreakdown by market and geography

Sales by market segment Sales by geography

Remark: acquired wastewater pump business consolidated since August 2011 (mainly serving water market)

45%

17%

10%16%

23%

15% 15% 15%

46%50%

23%25%

2010 2011 2012

Water

Oil and gas

Power

General industry

Sales and ROS development (in millions of CHF)

9.6%1

EuropeNorth AmericaCentral and South AmericaMiddle EastAsia, AustraliaAfrica11%

5%

20%

7%

34%

23%


Sulzer PumpsHighlights 2012 and outlook 2013

Outlook 2013:

Moderate growth in order intake and an increase in sales expected. Profitability forecast to increase slightly.

Strategic priorities and highlights 2012:

New high efficiency products launched

Subsea products launched; long-term exclusive collaboration agreement with FMC Technologies signed

Service network and offering expanded

Additional production plant in Kunshan, China

Inclusion of high-tech coatings from Sulzer Metco

Outstanding services

Continuous operationalimprovements

Technology leadership

Collaborative advantage


Market leader in surface solutionsSulzer Metco

Main markets

Transportation (Automotive, Aviation)

Power

General industry

Main products Coating materials (thermal spray) Coating systems (thermal spray)

Coating services


Sulzer MetcoKey financials


Order intake 689.5 673.6 +2.4% +1.2%

Order backlog (Dec 31) 76.5 77.4 –1.2%

Sales 690.3 667.3 +3.4% +2.3%

EBITDA 91.7 91.9 –0.2%


EBIT 68.7 68.7



Employees (Dec 31) 2 399 2 259 +6.2%

1) Adjusted for currency effects as well as acquisitions and divestitures2) Excluding 0.5-percentage-point higher corporate fees charged to divisions in 2012 compared with 2011 achievements

ROCE 17.1%Clearly value creating

Sales +3%Growth on high base

ROS 10.0% | 10.5%2

Stable

| 10.5%2



744

556

624667

690

10.0%

10.3%

9.2%

3.7%

9.4%

2008 2009 2010 2011 2012

Sales ROS in %

11%

52% 51% 50%

36% 36% 37%

2%2%2% 11%10%

2010 2011 2012

Sulzer Metco Breakdown by market and geography

Sales by geographySales by market segment

Oil and gas

Power

General industry

Transportation


10.5%1

1) Excluding 0.5-percentage-point higher corporate fees charged to divisions 2) Automotive 22%; Aviation 28%

2

EuropeNorth AmericaCentral and South AmericaMiddle EastAsia, Australia

1%

52%

24%

2%

21%


Sulzer MetcoHighlights 2012 and outlook 2013

Outlook 2013:

Moderate growth in order intake and sales expected. Profitability forecast to increase slightly.






Acquisition of carbon friction materials business

Strengthened coating service business with shop-in-shop center in China

Further progress with LEAN

Joined the CCAM1

Joint development of solutions together with Sulzer Chemtech

1) Commonwealth Center of Advanced Manufacturing, Virginia, USA


Market leader for separation, mixing and service solutionsSulzer Chemtech

Main markets

Oil and gas (mainly downstream)

General industry

Main products

Separation solutions

Separation tower services

Two component mixing and dispensing systems


Sulzer ChemtechKey financials

in millions of CHF (as reported) 2012 2011 % % adj.1

Order intake 705.1 701.7 +0.5% –4.1%

Order backlog (Dec 31) 293.6 310.7 –5.5%

Sales 724.6 667.0 +8.6% +4.0%

EBITDA 105.5 97.8 +7.9%


EBIT 70.7 63.1 +12.0%



Employees (Dec 31) 4 086 3 634 +12.4%

ROCE 16.3%Clearly value creating

Sales +9%Increased

ROS 9.8% | 10.3%2

Stable


| 10.3%2



Sulzer ChemtechBreakdown by market and geography


Oil and Gas

General Industry

Transportation

64% 69% 70%

3%3%3%

27%28%33%

2010 2011 2012

823

632575

667725

10.2% 9.8%

8.6%

17.0%

9.5%

2008 2009 2010 2011 2012

Sales ROS in %


10.3%1

1) Excluding 0.5-percentage-point higher corporate fees charged to divisions 2) Automotive: two-component dispensing

EuropeNorth AmericaCentral and South AmericaMiddle EastAsia, AustraliaAfrica

3%

37%

5% 23%

32%


Sulzer ChemtechHighlights 2012 and outlook 2013

Outlook 2013:

High single-digit growth in order intake and sales expected. Profitability forecast to reach a double-digit level.


Start up of biopolymer pilot plant

Process technology test center put into operation

Expansion of service offering of static equipment

Expansion of capacity and capabilities in Asia, Australia

Joint service project in HPI plant with Sulzer Pumps






Leading independent service provider for rotating equipmentSulzer Turbo Services

Main markets

Oil and gas

Power

General industry

Main services for

Industrial gas and steam turbines

Turbo compressors

Generators and motors


Sulzer Turbo ServicesKey financials

in millions of CHF (as reported) 2012 2011 % % adj.1

Order intake 535.2 477.6 +12.1% +8.4%

Order backlog (Dec 31) 151.6 130.1 +16.5%

Sales 510.5 488.0 +4.6% +0.8%

EBITDA 71.6 69.2 +3.5%


EBIT 54.9 53.2 +3.2%



Employees (Dec 31) 2 703 2 654 +1.8%

ROCE 14.8%Value creating

Sales +5%Increase


ROS 10.8% | 11.3%2

Stable

| 11.3%2



314291

488511

399

10.8%11.3%

9.7%10.9%10.5%

2008 2009 2010 2011 2012

Sales ROS in %


Oil and gas

Power

General industry

32%

25%27% 22%

35%35%

38% 43% 43%

2010 2011 2012


11.3%1

1) Excluding 0.5-percentage-point higher corporate fees charged to divisions

Sulzer Turbo ServicesBreakdown by market and geography

EuropeNorth AmericaCentral and South AmericaMiddle EastAsia, Australia

7%

4% 36%

37%

16%


Sulzer Turbo ServicesHighlights 2012 and outlook 2013

Outlook 2013:

Moderate growth in order intake and an increase in sales expected. Profitability forecast to increase slightly.


New tools for turbine inspection implemented

Capabilities and resources added for LTSA1

strategy deployment

Service offerings in new markets launched

Further steps toward LEAN

Closer collaboration with the Sulzer divisions

1) Long-term service agreements (large and long-term relationship)







Agenda



Financial Results



Vision and values

Vision:Our customers recognize us for our leading technology and services, delivering innovative and sustainable solutions.

We are committed to high standards and show respect for people.

We exceed the expectations of our

customers with innovative and

competitive solutions.

We perform on the basis of structured work

processes andLEAN principles.

Values:

Customer and people oriented, making sure that we act excellently



Strategic priorities





Oriented toward our customers with a focus onvalue creation and profitable growth

Profitable growth

Customerorientation

Midterm targets 2015


Strategic priorities


Continuous operational

improvements



Share of sales in services 41%

Expansion of service network

Service offerings for new markets

Safety KPIs further improved

On-time delivery improved by 14% through LEAN initiatives

Cross-divisional projects launched

Continued partnerships with universities and technical institutes

Continued investments in R&D

Further expansion of technology portfolio

Further strengthening of service network

Expanding service offering for the power industry

Improvement programs for safe behavior and Safety KPIs

Leverage on-time delivery potential

Increasing focus on company-wide cooperation

Seizing additional opportunities for shared services

Actions 2013Achievements 2012

New innovative solutions launched

Technology portfolio expanded

Start up of biopolymer pilot plant

First achievements and further actions



Agenda



Financial Results



Financial highlights 2012

Double-digit growth of order intake and sales

Supported by acquisition and organic growth

Record level of sales

Strong financial performance

Return on sales in double-digits

Increased net income

Strong cash flow

Healthy financing and balance sheet

New credit line established

Capital structure solid

Increased dividend proposed

Strong financial performance and high cash flow



millions of CHF 2012 2011 adj.1

Divisions 4 024.1 3 558.5 +13.1% +4.0%

Sulzer Pumps 2 094.3 1 705.6 +22.8% +7.1%

Sulzer Metco 689.5 673.6 +2.4% +1.2%

Sulzer Chemtech 705.1 701.7 +0.5% –4.1%

Sulzer Turbo Services 535.2 477.6 +12.1% +8.4%

Other –0.7 7.6 – –

Total 4 023.4 3 566.1 +12.8% +3.9%

1) adjusted for currency translation effects as well as acquisitions and divestitures

A strong year with more than CHF 4 billion of order intake

Order intake – by division


Strong growth in North America and Europe

Europe driven by high demand in Russia and supported by acquisition effect

Central and South America declined, mainly due to lower activity in Brazil

Asia, Australia continued to grow on a high level

Order intake – by region

millions of CHF 2012 2011

Europe 1 487.4 1 301.9 +14.2%

North America 1 091.5 891.1 +22.5%

Central and South America 296.7 334.3 –11.2%

Middle East 156.7 139.5 +12.3%

Asia, Australia 839.6 786.1 +6.8%

Africa 151.5 113.2 +33.8%

Total 4 023.4 3 566.1 +12.8%

37%

27%

7%

4%

21%

4%




millions of CHF 2012 2011 % adj.1

Divisions 4 022.9 3 570.1 +12.7% +4.2%

Sulzer Pumps 2 097.5 1 747.7 +20.0% +5.9%

Sulzer Metco 690.3 667.3 +3.4% +2.3%

Sulzer Chemtech 724.6 667.0 +8.6% +4.0%

Sulzer Turbo Services 510.5 488.0 +4.6% +0.8%

Other –1.3 7.8 – –

Total 4 021.6 3 577.9 +12.4% +4.1%

1) adjusted for currency translation effects as well as acquisitions and divestitures

Record level of sales, supported by all four divisions

Total sales from services 1 632.2 1 457.9 +12.0% –in % of total sales 40.6% 40.7%

Sales – by division


Strong growth in North America and Europe

Europe driven by high demand in Russia and supported by acquisition effect

Central and South America declined, mainly due to lower activity in Brazil

Share of sales in emerging and developing markets: 39% (2011: 41%)

Sales – by region

millions of CHF 2012 2011

Europe 1 483.3 1 268.0 +17.0%

North America 1 015.9 837.1 +21.4%

Central and South America 306.5 330.4 –7.2%

Middle East 157.9 148.6 +6.3%

Asia, Australia 915.3 835.7 +9.5%

Africa 142.7 158.1 –9.7%

Total 4 021.6 3 577.9 +12.4%

36%

25%

8%

4%

23%

4%




1864

3703247 73 -3722

-232-68 -36 1829

Backlog Dec 31,2011

New ordersorganic

Order relatedacquisition

effects

FX effects onorders

Sales organic Sales relatedacquisition

effects

FX effects onsales

FX effect onopening/ending

balance

Backlog Dec 31,2012

Backlog bridge

Order backlog remained at a high level as of December 31, 2012

Currency translation vs. prior year was positive

Acquisition effects: wastewater pump acquisition as well as some smaller acquisitions

Order backlog breakdown(in millions of CHF)

Share by division:Sulzer Pumps 72%Sulzer Metco 4%Sulzer Chemtech 16%Sulzer Turbo Services 8%


Influence factors

Gross margin2011: 30.6%

Gross margin 2012: 31.0%

Note: No material impact from raw material price changes

To the negative:

Changed business mix

Some lower-marginlong lead time orders

–+

To the positive:

Operating leverage

Operational excellence

Gross margin

Stable gross margin despite changes in business mix



Operating income (EBIT)

millions of CHF 2012 2011 %

Total Divisions 385.5 353.2 +9.1%

Sulzer Pumps 191.2 168.2 +13.7%

Sulzer Metco 68.7 68.7 –

Sulzer Chemtech 70.7 63.1 +12.0%

Sulzer Turbo Services 54.9 53.2 +3.2%

Others 24.0 10.9 –

Total Sulzer 409.5 364.1 +12.5%

2012 20121 2011

9.6% 10.1% 9.9%

9.1% 9.6% 9.6%

10.0% 10.5% 10.3%

9.8% 10.3% 9.5%

10.8% 11.3% 10.9%

– – –

10.2% 10.2% 10.2%

Operating income (EBIT) Return on sales in %(EBIT/sales)

Strong increase of operating income; stable ROS

1) Excluding 0.5 percentage points higher corporate fees charged to divisions; no impact on Total Sulzer


364 -18 23 536 410

EBIT 2011 asstated

Real estategains

Non-recurringeffects from

Cardoacquisition

FX translationeffect

Underlyingchange in EBIT

EBIT 2012 asstated

EBIT bridge

Operating income (EBIT) bridge 2011 to 2012(in millions of CHF)

Acquisition-relatednon- recurring effects (integration, transaction, step-up)

FX had no material impact on ROS due to natural hedge

Real estate gains from block sale bookedin 2011

ROS:10.2%

ROS:10.2%

Good underlying increase excluding non-recurring items



From operating income to net income


Operating income (EBIT) 409.5 364.1 +12.5%

Net interest income –17.6 –6.1 –

Other financial income 22.3 11.4 +95.6%

Income before income tax expenses (EBT) 414.2 369.4 +12.1%

Income tax expenses –102.2 –89.4 –14.3%

Net income 312.0 280.0 +11.4%

Attributable to shareholders of Sulzer Ltd. 307.1 279.8 +9.8%

Attributable to non-controlling interests 4.9 0.2 –

Earnings per share – basic (EPS) in CHF 9.03 8.25 +9.5%

Higher interest expenses due to CHF denominated bond and lower interest income

Other financial income included gain on sale of third-party shares

Effective income tax rate at 24.7% (2011: 24.2%) at a relatively low level, influenced positively by various non recurring items


363

529

150

82

348

2008 2009 2010 2011 2012

Free cash flow (FCF)

Free cash flow1 development over multiple years(in millions of CHF)

Focus on cash showed first results; strongly improved FCF1) Cash flow from operating activities less capital expenditure and sale of PP&E/intangibles

Proceeds from sale of real estate included in FCF – in millions of CHF:22 144 5 - -



“Cash for Growth” project1 update

Strong focus on volume growth after downturn year 2009

Post 2009, NWC increased over proportionally compared with volume growth

Negative implications on cash flow

“Cash for Growth” project phase I initiated

We aim for a sustainable improvement of net working capital

Year 2011:Strong increase of

net working capital (NWC)

Year 2012: First improvements

of cash flow

First positive implications from phase I of project became visible

Strong improvement of operating cash flow based mainly on

better cash collection

improved payment terms

Year 2013 ff.: Sustainable reduction

of NWC

Launch of “Cash for Growth” phase II with the ambition of building a more “cash-conscious culture”

Goal: further reduction of NWC in % of sales

Focus on processes:

Lower inventories

Better timing of purchases

1) Cash for Growth: Sulzer’s internal initiative to reduce net working capital on a sustainable basis.


Cash flow statement (condensed)


Cash flow from operating activities 472.8 188.6 –

Capital expenditure –128.2 –113.2 –13.3%

Sales of PP&E and intangible assets 3.3 6.9 –52.2%

Free cash flow 347.9 82.3 –

Acquisitions and divestitures –37.5 –815.4 –

Purchase/sale of financial assets/marketable securities 33.4 4.1 –

CF from operating and investing activities 343.8 –729.0 –

Dividend –102.2 –102.0 –0.2%

Changes in borrowings –157.0 619.7 –

Treasury stock/changes in non-controlling interests 7.7 –18.5 –

Exchange gains/losses on cash and cash equivalents –7.6 –15.7 –51.6%

Net change in cash and cash equivalents 84.7 –245.5 –

Improvements driven by operating cash flow



Cash and debt overview

Strong cash generation and further reduction of net debt position to CHF 96 million

Successful refinancing of a newCHF 500 million five-year creditfacility

Debt position mainly refers to CHF 500 million CHF-denominated bond

Cash and marketable securities

Debt

Net liquidity

Net liquidity (millions of CHF)

-182-97 -128

-768-609

513431

681767

489

-96

-337

553

671

306

-800

-600

-400

-200

0

200

400

600

800

2008 2009 2010 2011 2012

Net debt position further reduced


Balance sheet

(debt/equity)

Equity Liabilities

Equity in % of total assets Gearing in %

Balance sheet (millions of CHF)

Ratios:

Equity ratio at 50%

Gearing at 27%

Capital allocation:

Business needs

Dividends

Acquisitions

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

2008 2009 2010 2011 2012

0%

10%

20%

30%

40%

50%

60%

Solid capital structure to support growth ambitions



2.80 2.80

3.00 3.00

3.20

2008 2009 2010 2011 2012

Dividend

Increase of dividend to CHF 3.20Note: Proposal by Board of Directors to Annual General Meeting 2013 of Sulzer Ltd. which will take place on March 27, 2013

Dividend over multiple years(in CHF)

Payout: 29% 35% 34% 36% 35%


Agenda



Financial Results




Assessment of key markets for 2013

Sales share2012

Marketconditions

2012

Assessmentfor 20131

Oil and gas ~40%Growth

at high levels

Further growthfor parts of the

market

Power ~15%Moderate growth

at low levels

Forecast to continue at similar

levels

Water ~12%Growth, supported

by acquisitionFurther growth

expected

Transportation ~9%Moderate growth

at high levels

Forecast to continue at similar

levels

1) published on February 15, 2013; Based on present knowledge and excluding major changes in the general economic conditions


Financial midrange targets – by the year 2015

1) Targets 2015: compound annual growth rate in %; base year 2011; organic; portfolio as of December 31, 2011; constant FX

2) Basis: EBIT before major non-recurring items (major restructuring, M&A related expenses such as step ups, integration, transaction costs etc.); from 2012 including 0.5% higher corporate charges to divisions compared with 2011; Capital Employed including Goodwill and other intangible assets.

Midrange targets 2012-2015

Sulzer Pumps Sulzer Metco Sulzer ChemtechSulzer Turbo

ServicesTotal Divisions

FY 2012

Targetcorridorby 2015

FY 2012


FY 2012


FY 2012


FY 2012


Salesgrowth1 +5.9% 6-8% +2.3% 5-7% +4.0% 6-8% +0.8% 5-7% +4.2% 6-8%

EBITmargin(ROS)2

9.5% 11-13% 10.0% 11-13% 9.8% 12-14% 10.8% 12-14% 9.8% 11-13%

Returnon capital (ROCE)2

13.6% >20% 17.1% >20% 16.3% >20% 14.8% >18% 14.7% >20%

Issued: February 2012



Corporate Governance – Board of DirectorsAnnual General Meeting of Shareholders (March 27, 2013)

Board membersince April 2012 elected until 2013

Proposed for re-election for a one-year term of office:

Board membersince December 2007 elected until 2013


Board membersince August 2009 elected until 2013



Not to stand for re-election as chairman and member of the board:

Following internal age limitation rules.

Proposed for election to the board and designated to be elected as chairman:

Jürgen Dormann

ManfredWennemer

Thomas Glanzmann

Vladimir V. Kuznetsov

JillLee

MarcoMusetti

LucianoRespini

KlausSturany

For a one-year term of office.

Born 1947, German origin

Broad international experience in major industrial companies on operational leadership level and as chairman of advisory boards.


Summary and conclusion

Significant growth of orders and sales

Solid financial performance in a still challenging environment

Strong cash flow improvement

Global manufacturing and service footprint further strengthened

Strong balance sheet maintained; increased dividend proposed

2012 achievements

Vision and strategic priorities

Outlook

Clear vision and strong values

Strategic priorities launched with a focus on value creation and profitable growth

2013: moderate growth of orders and sales; profitability to improve slightly

Midterm targets 2015: confirmed

The Sulzer team is committed to deliver as promised

Sulzer has all the ingredients for sustainable future success



Q&A

Thank you for your attention.

Visit us online: www.sulzer.com


Investor contact, event dates and stock information

Investor Relations:Philippe DewitzPhone +41 52 262 20 22Fax +41 52 262 00 [email protected]/Investor-Relations

Key reporting dates and events in 2013:February 15, 2013 Full Year Results 2012 publication (Analyst conference 4p.m. CET at SIX, Zurich, Switzerland)March 27, 2013 Annual General Meeting 2013, Winterthur, SwitzerlandApril 16, 2013 Order intake release first quarter 2013 (media release)July 23, 2013 Midyear Results publication (six months 2013) (Conference call/webcast)October 17, 2013 Order intake release first nine months 2013 (media release)November 8, 2013 Capital Market Day 2013

Sulzer Ltd is listed on SIX Swiss Exchange:

Identifier Number Number of shares issued: Largest shareholders (>3%):

SIX (security number) 3838891 34 262 370 Renova Group 31.2%

ISIN CH 003 838891 1 Blackrock 3.0%

Ticker Symbol SUN

Bloomberg SUN VX

Reuters SUN.S

Company address:

Sulzer LtdZürcherstrasse 148401 Winterthur, Switzerland

sulzer annual results presentation 2012

Documents