Sika Ag · SIX:SIKA

Sika — Investor Presentation (September 2022)

31 slides from Sika's investor presentation, September 2022

  1. Slide 1: Our First Half-Year 2022 – Records in Sales, EBIT, and Profit

    OUR FIRST HALF-YEAR 2022 RECORDS IN SALES, EBIT, AND PROFIT SIKA INVESTOR PRESENTATION SEPTEMBER 2022

  2. Slide 2: Agenda

    1. OUR FIRST HALF-YEAR 2022 – RECORDS IN SALES, EBIT, AND PROFIT 2. SIKA’S GROWTH DRIVERS 3. UPDATE ON MBCC ACQUISITION 4. OUTLOOK

  3. Slide 3: 1. Our First Half-Year 2022 – Records in Sales, EBIT, and Profit

    1. OUR FIRST HALF-YEAR 2022 – RECORDS IN SALES, EBIT, AND PROFIT

  4. Slide 4: Record Results in the First Half of 2022

    RECORD RESULTS IN THE FIRST HALF OF 2022 GROWTH IN LOCAL CURRENCIES OF 19.5% - EBIT GROWTH OF 22.7% 1. Sales and profit  Sales growth of 19.5% in local currencies. Record sales of CHF 5,250.3 million (+18.0% in CHF).  Record operating profit (EBIT) at CHF 841.9 million (+22.7%), including profit f

  5. Slide 5: Highlights in 2022 – Acquisitions & Divestments

    HIGHLIGHTS IN 2022 ACQUISITIONS & DIVESTMENTS Closing of transaction related to Acquisition of Sable Marco, Divestment of Aliva divestment of European industrial Canada (March 2022) (May 2022) coatings business (April 2022) Acquisition of UGL, USA Sika to acquire MBCC Group (May 2022) (expected clos

  6. Slide 6: Highlights in 2022 – New Plants

    HIGHLIGHTS IN 2022 NEW PLANTS Opening of a new Opening of a new plant in the Ivory plant in Tanzania Coast (February 2022) (February 2022) Opening of new Opening of new plant near plant in Bolivia Washington D.C. (May 2022) (June 2022) 6

  7. Slide 7: Record Results in the First Half of 2022 – EBIT Margin at 16.0%

    RECORD RESULTS IN THE FIRST HALF OF 2022 EBIT-MARGIN AT 16.0% in CHF mn 2021 NS 2022 NS Growth Net sales 4,448.7 100% 5,250.3 100% 18.0% Gross result 2,372.8 53.3% 2,592.2 49.4% 9.2% Personnel expenses -813.3 -18.3% 882.4 -16.8% Other OPEX -692.5 -15.5% -673.7 -12.9% EBITDA 867.0 19.5% 1,036.1 19.7%

  8. Slide 8: Growth in Local Currencies of 19.5%

    RECORD RESULTS IN THE FIRST HALF OF 2022 GROWTH IN LOCAL CURRENCIES OF 19.5% 23.5% 19.5% 1.1% 2.9% 4.0% 22.4% 13.4% 15.5% in LC acquisition organic -10.5% in CHF mn 1 HY 2020 1 HY 2021 1 HY 2022 Sales 3,614.6 4,448.7 5,250.3 8

  9. Slide 9: Growth in Local Currencies of 19.5% by Region and Business

    RECORD RESULTS IN THE FIRST HALF OF 2022 GROWTH IN LOCAL CURRENCIES OF 19.5% +7.6% +39.5% +17.7% +12.0% Growth in CHF +12.9% +35.8% +17.0% +13.2% Growth in LC -5.3% +3.7% +0.7% -1.2% FX impact -0.5% +8.4% +7.8% +5.7% Acquisition 18% 82% Construction Industry 9 EMEA Americas Asia/Pacific Global Busin

  10. Slide 10: All Regions with Double-Digit Growth

    RECORD RESULTS IN THE FIRST HALF OF 2022 ALL REGIONS WITH DOUBLE-DIGIT GROWTH HY 2021 HY 2022 + 12.9% (in CHF billion, growth in LC) + 19.5% + 35.8% + 17.0% + 13.2% 1.54 2.19 1.13 0.39 5.25 Americas EMEA Asia/Pacific Global Business Group 10

  11. Slide 11: Sika's Growth Model Delivers Continuous Strong Performance

    SIKA’S GROWTH MODEL DELIVERS CONTINUOUS STRONG PERFORMANCE Net NETSales SALES(Half-year) Net (Half-year) Profit EBIT NET SALES +19.5% in CHF mn in CHF mn, growth in LC +23.5% +9.6% +2.9% +13.9% 5,250.3 +8.1% 841.9 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 11

  12. Slide 12: 2. Sika's Growth Drivers

    2. SIKA’S GROWTH DRIVERS ® BUILDING TRUST Bs

  13. Slide 13: Resilient Strategy – Major Megatrends Supporting Growth

    RESILIENT STRATEGY – MAJOR MEGATRENDS SUPPORTING GROWTH FURTHER ACCELERATION THROUGH DIGITALIZATION Urbanization Climate Change and Digitalization Scarcity of Resources Demographic Dynamic Technological Change Economy Progress 13

  14. Slide 14: Resilient Growth Strategy 2023 – Strategic Targets Confirmed

    RESILIENT GROWTH STRATEGY 2023 STRATEGIC TARGETS CONFIRMED SUSTAINABILITY Market Penetration 6-8% annual growth 15-18% EBIT margin Until 2020: <15% Innovation Operational Efficiency 25% of sales with new >10% products Operating free cash flow per year as % of net sales Acquisitions 0.5% pts non-mate

  15. Slide 15: Sika Highlights Strong Performance During Turbulent Years

    SIKA HIGHLIGHTS STRONG PERFORMANCE DURING TURBULENT YEARS Net Sales EBIT in CHF mn In CHF mn 2Y CAGR 2Y CAGR* +14.8% +10.0% 1,391.4 9,252.3 2019 2020 2021 2019 2020 2021 *Growth in % LC 15

  16. Slide 16: Growth Driver – Africa Expansion

    GROWTH DRIVER – AFRICA EXPANSION AFRICA IS JUST BEING BUILT  Since 2014, Sika has opened 10 new national subsidiaries and is now present in 18 countries  Sika operates 22 production sites and generates sales of CHF 300 million in Africa  Population in Africa expected to double to over 2 billion p

  17. Slide 17: Growth Driver – Repair and Refurbishment

    GROWTH DRIVER – REPAIR AND REFURBISHMENT HIGHLY RESILIENT THROUGH THE CYCLES  High resilience of refurbishment 55% of Group sales in construction In mature markets, 70% of sales in through economic cycles generated by refurbishment construction generated by refurbishment  Corrective maintenance ca

  18. Slide 18: Growth Driver – Infrastructure Programs

    GROWTH DRIVER – INFRASTRUCTURE PROGRAMS CHF 10 TRILLION PLANNED STIMULI EU working towards US infrastructure climate neutrality investments running approx. CHF China invests in technology 400 into the billions and infrastructure approx. CHF 850 billion approx. CHF billion 8,000 billion  Extensive i

  19. Slide 19: Global Automotive Production Recovery Expected in the Next Few Years

    GLOBAL AUTOMOTIVE PRODUCTION RECOVERY EXPECTED IN THE NEXT FEW YEARS in mn units 100 95 Strong recovery expected 90 Following the pandemic-related decline, a full recovery in global automotive production is predicted 85 to happen by 2025. 80 75 Global automotive production 70 Forecast (as of May 202

  20. Slide 20: Growth Driver – Sustainable Development: Environmentally-Friendly Construction

    GROWTH DRIVER – SUSTAINABLE DEVELOPMENT ENVIRONMENTALLY-FRIENDLY CONSTRUCTION Durability Clinker reduction Roofing By increasing the lifespan of Sika solutions enable clinker Sika’s wide range of durable buildings, Sika solutions help reduction in cement and and long-lasting roofing reduce the carbo

  21. Slide 21: reCO2ver – Sika Breakthrough Innovation

    GROWTH DRIVER – SUSTAINABLE DEVELOPMENT reCO2ver® – SIKA BREAKTHROUGH INNOVATION Segregates concrete back to its original ingredients to be re-used for new high-grade concrete This unique process includes sequestration of CO2 and produces high quality SCM powder which allows reduction of cement in n

  22. Slide 22: Sika Roadmap to Net Zero

    GROWTH DRIVER – SUSTAINABLE DEVELOPMENT SIKA ROADMAP TO NET ZERO OCT 2022 A great opportunity to position Sika as a sustainability champion 22

  23. Slide 23: Growth Driver – Employee Engagement

    GROWTH DRIVER – EMPLOYEE ENGAGEMENT OUR ENABLERS 27,000 employees Our employees enable our success. With their hard work and dedication, they allow Sika to successfully implement its strategy of sustainable growth. 23

  24. Slide 24: 3. Update on MBCC Acquisition

    3. UPDATE ON MBCC ACQUISITION

  25. Slide 25: Update on MBCC Acquisition – Entering an Exciting Next Chapter

    UPDATE ON MBCC ACQUISITION ENTERING AN EXCITING NEXT CHAPTER Strong business rationale  We have highly complementary products and distribution channels  We will accelerate Sika’s Growth Strategy 2023 together  Together, we will enable our customers and the construction industry to navigate the su

  26. Slide 26: Update on MBCC Acquisition – Complementary in Many Ways

    UPDATE ON MBCC ACQUISITION COMPLEMENTARY IN MANY WAYS Complementary in many countries, regions, and product ranges. Combination will lead to a very balanced offering. Customers will benefit from a stronger solution portfolio, as well as an enhanced and more efficient distribution network across all

  27. Slide 27: Update on MBCC Acquisition – Based on Strong Shared Values and Principles

    UPDATE ON MBCC ACQUISITION BASED ON STRONG SHARED VALUES AND PRINCIPLES Joining values to provide world-class service to customers, foster a healthy working environment for employees, and continue our strong growth around the world. Customer first Courage for Make the impossible innovation possible

  28. Slide 28: 4. Outlook

    4. OUTLOOK ® BUILDING TRUST Bs

  29. Slide 29: Outlook 2022

    OUTLOOK 2022 CONTINUATION OF SUCCESSFUL GROWTH STRATEGY  Sales increase by well over 10% in local currencies, surpassing CHF 10 billion for the Expected sales first time  Over-proportional EBIT increase expected for for 2022 10 the year >  Confirmation of 2023 strategic targets for sustainable, p

  30. Slide 30: Thank You for Your Attention

    THANK YOU FOR YOUR ATTENTION ® BUILDING TRUST Bs

  31. Slide 31: Forward-Looking Statement

    FORWARD-LOOKING STATEMENT This presentation contains certain forward-looking statements. These forward-looking statements may be identified by words such as ‘expects’, ‘believes’, ‘estimates’, ‘anticipates’, ‘projects’, ‘intends’, ‘should’, ‘seeks’, ‘future’ or similar expressions or by discussion o

Sika — Investor Presentation (September 2022) on 6ix