Sika Ag · SIX:SIKA

Sika — Non-Deal Roadshow (May 2011)

28 slides from Sika's roadshow presentation, May 2011

  1. Slide 1: Roadshow Presentation

    Roadshow Presentation 2 Short List ƒ World market leader in construction chemicals ƒ Highly focused industrial portfolio ƒ Successful growth strategy ƒ Active in markets with structural growth ƒ Technology leadership ensures healthy margins ƒ Solid balance sheet guarantees freedom of action 1

  2. Slide 2: About Sika: Milestones

    3 About Sika 4 Milestones 1910 Foundation by Kaspar Winkler First product: Sika 1 (waterproof mortar) 1918-1922 Waterproofing of Gotthard railway tunnel 1935 First large-scale use of Plastiment®, plasticizer 1968 Launch of membranes Launch of Sikaflex® 1A (elastic sealing and bonding) 1974 Going pub

  3. Slide 3: A Century of Innovation, Some Key Figures

    5 A Century of Innovation 6 Some Key Figures ƒ Sales CHF 4.4 bn ƒ Over 120 plants ƒ EBITDA CHF 577.0 mn ƒ 13’500 employees ƒ Presence in 5 continents and 74 countries 3

  4. Slide 4: Net Sales by Regions and Markets 2010

    7 Net Sales by Regions 2010 IMEA 7% Asia/Pacific 15% Europe North 33% Latin America 11% Emerging North America markets: 36% 14% Europe South 20% 8 Net Sales by Markets 2010 Construction 80% Industry 20% 4

  5. Slide 5: Results Full Year 2010

    9 Results Full Year 2010 10 Sales and EBIT Development 2006 2007 2008 2009 2010 4573 4625 Sales (in CHF mn) 4416 3896 4155 Organic growth 16.9% 13.3% 5.9% -6.2% 6.1% (in %) 511 EBIT (in CHF mn) 440 422 401 371 EBIT margin 9.5% 11.2% 9.1% 9.6% 10.0% (in %) 5

  6. Slide 6: Sales Growth 2010 and Net Sales by Regions

    11 Sales Growth 2010 (in CHF mn) 2009 2010 ∆ % Net sales 4 154.9 4 416.0 + 261.1 6.3 - Organic growth + 253.3 6.1 - Acquisition effect + 170.7 +4.1 - Currency effect -162.8 -3.9 Acquisitions in 2010: Carglass Adco, Red J Henkel, Panbex, Dyflex, Greenstreak, May National 12 Net Sales by Regions Growt

  7. Slide 7: Net Sales by Markets and Consolidated Income Statement

    13 Net Sales by Markets 4 500 4 000 865 Growth in Local Currencies 3 500 Industry 16.7% 3 000 CHF mn 2 500 2 000 3551 1 500 Construction 8.7% 1 000 500 0 Full Year 2010 14 Consolidated Income Statement (in CHF mn) Actual Actual 2009 FY % NS 2010 FY % NS Growth Net Sales 4'154.9 100.0% 4'416.0 100.0%

  8. Slide 8: Gross Result and Margin Development 2010

    15 Gross Result Negatively impacted by increasing raw material prices. 2500 62% 2385 2000 59% CHF mn 1500 56% 54.0% 1000 53% 500 50% 2006 2007 2008 2009 2010 Gross Result in % of Net Sales 16 Margin Development 2010 Higher volumes / increasing raw material prices 189 59 40 CHF mn 2'295 2'385 55.2% 5

  9. Slide 9: Non Material Cost and Personnel Cost Development

    17 Non Material Cost Development 2010 adjusted by one offs and acquisitions Cost Analysis 2010 Actual Actual Variance (in Mio CHF) 2009 2010 absolute in % Net Sales 4'154.9 4'245.3 2.2% Total non Material Cost 1'755.4 1'730.0 -25.4 -1.4% whereof: Personnel Expenses Comparable 954.3 921.1 -33.2 -3.5%

  10. Slide 10: EBIT and EBIT by Region

    19 EBIT 600 12% 500 11% 440 400 10% CHF mn 10.0% 300 9% 200 8% 100 7% 0 6% 2006 2007 2008 2009* 2010 EBIT in % *2009 excl. Restructuring Cost 20 EBIT by Region (in CHF mn) in % NS in % NS 600 PY CY 550 46 500 IMEA 16.3% 15.7% 88 450 Latin America 14.4% 18.3% 400 92 350 Asia/Pacific 11.4% 13.6% CHF m

  11. Slide 11: EBIT Development Central Services, Net Profit

    21 EBIT Development Central Services (in CHF mn) Actual 2009 Actual 2010 deviation MCHF MCHF 10 vs. 09 EBIT EBIT Operations 513 570 57 Central Services -112 -130 -18 Group 401 440 39 Special effects: - Acquisition cost - Jubilee - SAP Alliance 22 Net Profit after Taxes to Net Sales Increased Net Pro

  12. Slide 12: Taxes and Consolidated Balance Sheet

    23 Taxes Decreasing Tax Rate 2010 affected by one off impact 140 40% 38% 120 36% 100 93 34% 32% CHF mn 80 28.5% 30% 60 28% 40 26% 23.0% 24% 20 22% 0 20% 2004 2005 2006 2007 2008 2009 2010 Tax in % of Net Profit before Tax 24 Consolidated Balance Sheet (in CHF mn) Actual Actual 31.12.2009 31.12.2010

  13. Slide 13: Cash Flow Statement and Operating Free Cash Flow

    25 Cash Flow Statement (in CHF mn) Actual Actual 2009 2010 Cash Flow from Operating Activities 526.3 424.8 Cashflow from Investing Activities -213.8 -180.9 Free Cash Flow 312.5 243.9 Acquisitions / Divestment 56.2 88.3 Operating Free Cash Flow 368.7 332.2 26 Operating Free Cash Flow 400 10% 350 332

  14. Slide 14: Key Ratios and Appropriation of Retained Earnings

    27 Key Ratios (in CHF mn) Actual Actual 31.12.2009 31.12.2010 Equity ratio 43.9% 44.6% Net Debt 265 165 NWC 836 802 NWC (in % of NS) 20.1% 18.2% Gearing (Net Debt/Total Equity) 16.6% 9.4% ROCE (EBIT / av. capital employed) * 19.3% 21.3% *2009 excl. Restructuring Cost 28 Proposed Appropriation of Ret

  15. Slide 15: First Quarter 2011

    29 First Quarter 2011 30 Net Sales Q1 2011 (in CHF mn) 2010 2011 ∆ % Net sales 893.6 1021.2 127.6 14.3 - Organic growth 162.1 18.1 - Acquisition effect 58.6 6.6 - Currency effect -93.1 -10.4 15

  16. Slide 16: Q1 2011 Net Sales by Regions and Markets

    31 Net Sales by Regions (Growth in Local Currencies) 1 000 Asia/Pacific 61.8% 180 800 126 Latin America 26.0% 136 600 CHF mn 68 North America 29.5% 400 199 IMEA 9.4% 200 Europe South 8.6% 310 0 Europe North 22.8% Q1 2011 32 Net Sales by Markets (Growth in Local Currencies) 1 000 224 800 Industry 17.

  17. Slide 17: Growth Drivers: Emerging Markets

    Outlook 2010 / 2011 Growth Drivers 34 1) Emerging Markets ƒ Technology Penetration ƒ Infrastructure Build Up ƒ Transportation Needs ƒ Requirements 17

  18. Slide 18: Technology Penetration, Infrastructure Build Up

    35 Technology Penetration ƒ Markets are moving into our technologies Technology leadership - Sika = competence for all problems - high added value - high margins State of the art - high competence - good added value - good margins and loyalty Low cost solutions - get access to broad customer base -

  19. Slide 19: Increasing Transportation Needs, Requirements to Conquer Markets

    37 Increasing Transportation Needs ƒ Car sales increase from 2011 to 2013 India Asia 2011 +9.5% 2011 +7.1% 2012 +11.2% 2012 +6.3% 2013 +10.1% 2013 +5.4% ƒ 70% of world bus production in emerging markets and growing (20% China) Source: CS, Xinhua, China Daily 38 Requirements to Conquer the Markets ƒ

  20. Slide 20: Megatrend Sustainability

    39 2) Megatrend Sustainability ƒ CO2 ƒ Energy ƒ Water 40 Global Climate Asks Reduction of CO2 Emission ƒ Allow reduction of clinker by fly ash / lime stone: reduction of up to 5% of global CO2 ƒ Reduced concrete consumption by using admixtures: -1% of global CO2 ƒ Blended cement reduces production e

  21. Slide 21: Energy Demand and Water Consumption

    41 Increasing E-Demand Asks for Better E-Mgmt ƒ Membrane-Roofing: 15% energy savings ƒ Insulation Facade Windows Basements ƒ Wind Energy ƒ Solar Energy 42 Reduce Water Consumption Will Be Imminent ƒ Optimized water management will play key role ƒ Increase demand for respective constructions Reservoi

  22. Slide 22: Mature Markets: Innovation

    43 3) Mature Markets ƒ Innovation ƒ Trend to top technology ƒ Customer Penetration ƒ Potential for Refurbishment 44 Innovation ƒ i-cure top sealing technology New hardener technology with new dimension of environmental protection and longer shelf life ƒ Solvent free adhesives Reduce emissions, compl

  23. Slide 23: Trend to Top Technology, Customer Penetration

    45 Trend to Top Technology ƒ Get maximum performance ƒ Speed up production/reduce cost ƒ Improve sustainability 46 Technology Crossing Customer Penetration ƒ Only Sika is able to offer basement to roof solutions ƒ Increase sales with existing customers ƒ Improve penetration within each single projec

  24. Slide 24: Sika Strategy: Potential for Refurbishments

    47 High Potential for Refurbishments North EU Europe America Existing Existing Existing Existing Bridges Bridges Airports Airports 1‘000 1‘000 Potential for Potential for Refurbishments 377 45 Refurbishments 430 70 48 Sika Strategy 24

  25. Slide 25: Vision and Strategy, Market Position of Sika Today

    49 Vision and Strategy 1. Become the market leader in all target markets on global and local level 2. Means market share > 20% 3. Results in ~ CHF 8 bn Net Sales 50 Market Position of Sika Today 2004 ranking 2010 ranking Concrete 450 3 850 2 Biggest competitor: BASF 1 1 Roofing 150 4 740 1 Biggest c

  26. Slide 26: Vision and Strategy, Financial Targets

    51 Vision and Strategy How Sika gets to CHF 8 bn ƒ Actual Net Sales CHF 4.4 bn ƒ Organic Growth (8%) CHF 2 - 3 bn ƒ Emerging markets ƒ Mature markets ƒ Innovation ƒ Acquisitions CHF 1 - 1.5 bn ƒ Total > ~ CHF 8 bn 52 Financial Targets 5 Year Targets 2006 2007 2008 2009 2010 average Net sales growth

  27. Slide 27: Outlook 2011, Questions and Answers

    53 Outlook 2011 ƒ Good start in to the new year ƒ Outlook today is better than a year ago ƒ Critical raw material supply and price situation ƒ Financial targets confirmed 54 Questions and Answers 27

  28. Slide 28: Forward-looking statements

    55 Forward-looking statements The statements in this presentation relating to matters that are not historical facts are forward-looking statements. They are no guarantee of future performance and involve risks and uncertainties with regard to future global economic conditions, foreign exchange rates

Sika — Non-Deal Roadshow (May 2011) on 6ix