Sto AG
_________________________________________________________________________________
Sto AG: SWOT Analysis & Company Profile
Reference code: CN0063CP
Published: Feb 2011
Business Review
John Carpenter House
7 Carmelite Street
London EC4Y 0BS
United Kingdom
Tel: +44 (0) 20 7936 6400
Fax: +44 (0) 20 7336 6813
___________________________________________________________________________________________
Sto AG - SWOT Profile Page 1
Sto AG
__________________________________________________________________________________________
Sto AG - Company Overview
Sto AG (Sto) is a manufacturer of facade insulations systems, external wall insulation systems, and coatings for indoor
and outdoor applications. It offers thermal insulation products for existing and new buildings in Germany and
internationally. The company is also engaged in supplying paints, high quality facade elements, flooring coatings and
concrete repair products. The company‟s product line consist of facade paints and facade plasters, rain screen-cladding
systems, interior paints, and acoustic systems. The company through its 26 wholly-owned subsidiaries operates in 20
countries across Western Europe, Northern and Eastern Europe, America and Asia. The company is headquartered in
Stuehlingen, Germany.
Financial Performance
The company reported revenue of EUR937.22 million during the fiscal year ended December 31, 2009. The company's
revenue grew at a CAGR of 2.3% during the period 2007-2009 with an annual decline of 2.7% over fiscal year 2008.
During the fiscal year 2009, its operating margin was 8.8% as against the operating margin of 8.6% in fiscal year 2008.
During the fiscal year 2009, the company registered a net margin of 5.9% as against the net margin of 5.4% in the fiscal
year 2008.
Sto AG - Key Facts
Sto AG, Key Facts
Ehrenbachstrasse 1,
Ticker Symbol, Stock
Corporate Address: STO3 (XETRA)
Stuehlingen, , 79780, Germany Exchange
Telephone + 49 7744 570 No. of Employees 4,332
Fax + 49 7744 572178 Financial Year End December
URL www.sto.de Revenue (in EUR Million) 937.22
Industry Construction Revenue (in USD Million) 1,301.69
Afghanistan, Armenia, Australia, Azerbaijan, Bangladesh, China, Malaysia, New Zealand, Singapore,
Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Hungary, Ireland, Italy,
Locations
Netherlands, Norway, Poland, Russian Federation, Spain, Sweden, Switzerland, United Kingdom,
Algeria, Angola, Bahrain, United States
Source: Annual Report, Company Website, Primary and Secondary Research
___________________________________________________________________________________________
Sto AG - SWOT Profile Page 2
Sto AG
__________________________________________________________________________________________
Sto AG - Business Description
Sto AG (Sto) is a construction material manufacturing company. It is the parent company of the group. The company is
engaged in the supply of coatings and insulation for facades, interiors and concrete surfaces. The company is involved in
the facade insulations systems and coatings for indoor and outdoor applications. The company products find application
both in the construction of new buildings and in building renovation work.
The company conducts its business activities under three segments namely, Western Europe, Northern/Eastern Europe
and America/Asia.
The Western Europe market segment of the company comprises key markets such as Germany, the UK, Spain and the
Netherlands. The segment is largely operated through Sudwest Lacke + Farben GmbH & Co. KG. During the fiscal year
ended December 31, 2009, the Western Europe market segment contributed 81.2% towards the total revenues of the
company, generating EUR751.2 million, an increase of 1.7% over the previous year.
The Northern/Eastern Europe segment of the company includes Finland and Hungary. During the fiscal year ended
December 31, 2009, the Northern/Eastern Europe segment contributed 9.9% towards the total revenues of the company,
generating EUR91.3 million, a decrease of 20.1% over the previous fiscal year.
The Americas/Asia segment also recorded an overall drop in sales in 2009. During the fiscal year ended December 31,
2009, the Americas/Asia segment contributed 8.9% towards the total revenues of the company, generating EUR82.1
million, a decrease of 12.6% over the previous year.
The company also provides services that assist Sto customers in planning color schemes and materials in the design
process or in the application of Sto products, for which a comprehensive range of silo equipment, machinery and
application tools is available. It caters to traders, architects and building development companies.
The company handles German domestic business involving paints, renders and insulation systems. StoCretec GmbH is
responsible for floor coatings and concrete repair products, and StoVerotec GmbH for decorative profiles, acoustic and
rain screen cladding systems. The foreign business is largely managed by national companies operating independently.
Sto AG operates five manufacturing plants one each at the headquarters in Stuhlingen and in locations Tollwitz near
Leipzig, Rüsselsheim, Donaueschingen and Kriftel. The group also includes the two manufacturing plants of Suwest
Lacke + Farben GmbH & Co. KG and StoVerotec GmbH in Germany. Outside Germany, the company owns
manufacturing plants in France, Malaysia, Spain, Sweden, Poland, China, and the US.
___________________________________________________________________________________________
Sto AG - SWOT Profile Page 3
Sto AG
__________________________________________________________________________________________
Sto AG - Major Products and Services
Sto AG (Sto) is a construction material manufacturer company. The key products and services of the company include the
following:
Sto AG, Major Products and Services
Products:
Primer
Intermediate plasters
Finishing plasters
Architectural elements
Coating based crack repair systems
Plaster based crack repairing systems
Substrate coatings
Base renders
Reinforcement
Intermediate coating
Top coat
Intermediate coats
Organic finishing plasters
Silicate finishing plasters
Mineral finishing plasters
Mineral interior paints
Silicate paints
Wall and ceiling coverings
Effect coatings
Texture Coatings
Acoustic panel systems
Acoustic plaster systems
Acoustic plaster systems
Concrete restoration on building structures
Protection on building structures
Services:
Advisory services
Application-oriented services
Source: Annual Report, Company Website, Primary and Secondary Research
___________________________________________________________________________________________
Sto AG - SWOT Profile Page 4
Sto AG
__________________________________________________________________________________________
Sto AG - History
Sto AG, History
Year Event type Description
2006 Corporate Changes/Expansions Sto opened a “Info Factory” at the Weizen plant.
2005 Incorporation/Establishment The Sto Foundation and Sto Italia Srl subsidiary in Empoli was incorporated.
2004 Incorporation/Establishment Sto Ibérica S.L. subsidiary in Barcelona was established.
2003 Acquisitions/Mergers/Takeovers The company acquired Sicof S.A.S. a French paint manufacturer.
2003 Others The new factory "Sto 2003" in Weizen as completed.
The remaining 40 % interest in ispo was taken over and amalgamation of ispo GmbH
2002 Acquisitions/Mergers/Takeovers
with Sto AG.
The company has acquired 60 % of stake in ispo from Dycker