Sika Ag · SIX:SIKA
Sika — Investor Presentation (May 2023)
32 slides from Sika's investor presentation, May 2023
Slide 1: Sika Performs Well in Demanding Markets: Slight Growth in Local Currencies in First Quarter
SIKA PERFORMS WELL IN DEMANDING MARKETS: SLIGHT GROWTH IN LOCAL CURRENCIES IN FIRST QUARTER SIKA INVESTOR PRESENTATION MAY 2023
Slide 2: 1. Sales First Quarter 2023
1. SALES FIRST QUARTER 2023 ® BUILDING TRUST Bs
Slide 3: Highlights Q1 2023: Performing Well in Demanding Markets
HIGHLIGHTS Q1 2023 PERFORMING WELL IN DEMANDING MARKETS Sales increase in local currencies of +1.2% Sales Q1 of CHF 2,325.9 million (-3.0% in CHF) Strong growth of 15.2% in Global Business (previous year: 10.4%) Negative currency effect of -4.2% Outlook for fiscal 2023 confirmed • Sales in
Slide 4: Highlights Q1 2023: Slight Growth in Local Currencies in First Quarter
HIGHLIGHTS Q1 2023 SLIGHT GROWTH IN LOCAL CURRENCIES IN FIRST QUARTER Q1 2022 Q1 2023 - 4.7% (in CHF billion, growth in LC) + 1.2% + 5.1% + 2.6% + 15.2% 0.70 0.93 0.48 0.22 2.33 Americas EMEA Asia/Pacific Global Business Group 4
Slide 5: 2. Highlights 2022
2. HIGHLIGHTS 2022 ® BUILDING TRUST Bs
Slide 6: Highlights 2022: Record Results for Sales, EBIT and Profit
HIGHLIGHTS 2022 RECORD RESULTS FOR SALES, EBIT AND PROFIT Record results 2022 Sales of CHF 10,491.8 million (+13.4%), increase in local currencies +15.8% CHF 1,579.7 million EBIT (+13.5%) EBIT margin at 15.1% (2021: 15.0%) Sales in CHF CHF 1,162.5 million net profit (+10.9%) Key investme
Slide 7: Sika Exceeds Sales of CHF 10 Billion for the First Time
SIKA EXCEEDS SALES OF CHF 10 BILLION FOR THE FIRST TIME SALES GROWTH OF 15.8% IN LOCAL CURRENCIES + 8.3% + 15.8% + 27.5% + 14.8% + 22.2% 3.19 4.14 2.34 0.81 10.49 Americas EMEA Asia/Pacific Global Business Group 2021 2022 (in CHF billion, growth in LC) 7
Slide 8: Highlights 2022: Strong Progress in Sustainable Performance
HIGHLIGHTS 2022 STRONG PROGRESS IN SUSTAINABLE PERFORMANCE 62.7% -6.9% -3.3% of electricity purchased reduction of CO2eq emissions waste per ton sold from renewable sources per ton sold (scope 1 and 2) 53,666 -23.8% -6.1% direct beneficiaries of the Lost Time Accidents reduction in water Community E
Slide 9: Strong Development Over the Years with Over-Proportional Profitability Growth
STRONG DEVELOPMENT OVER THE YEARS WITH OVER-PROPORTIONAL PROFITABILITY GROWTH Net Sales EBIT 1.8 +15.8% +3.4% 15.1% 1.6 10 +17.1% 1.4 15.0% +16.3% +3.4% 8 1.2 14.4% +13.6% 13.0% 1.0 13.4% 6 14.3% 0.8 4 0.6 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 (in CHF bn, growth in LC) (in CHF
Slide 10: 3. Execution and Benefits of Megatrends
3. EXECUTION AND BENEFITS OF MEGATRENDS
Slide 11: Strong Execution and Benefits of Megatrends
STRONG EXECUTION AND BENEFITS OF MEGATRENDS SIKA STRONGLY POSITIONED IN 2022 AND BEYOND 10Y CAGR: 2012 – 2022 Urbanization Climate Change +10.8 % Digitalization Automation Demographic Emerging Change market growth 11
Slide 12: Urbanization – Secure Water Supply for the Medellín Region, Colombia
URBANIZATION – INFRASTRUCTURE PROGRAMS SECURE WATER SUPPLY FOR THE MEDELLÍN REGION, COLOMBIA Project description The region’s largest water treatment facility is being modernized Guaranteed and secured supply of drinking water The facility will supply 60% of the Aburrá Valley’s drinking water
Slide 13: Urbanization – Strong Infrastructure Programs in USA
URBANIZATION – STRONG INFRASTRUCTURE PROGRAMS IN USA EXTENSIVE INFRASTRUCTURE PROGRAMS STIMULATE ECONOMIES Highway construction in Virginia The largest infrastructure highway project ever in Virginia 4 bridges are being extended and 2 new underwater tunnels being built from scratch Sika provid
Slide 14: Urbanization – Repair and Refurbishment: Quay Quarter Tower in Sydney
URBANIZATION – REPAIR AND REFURBISHMENT THE QUAY QUARTER TOWER (QQT) IN SYDNEY Project description The QQT has been “upcycled” from the original AMP Centre skyscraper built in 1976 QQT opened at the start of 2022, is 206 meters high and has 59 floors 95% of the existing core preserved CHF 85
Slide 15: Climate Change – Sika's Net Zero Roadmap
CLIMATE CHANGE – STRONG SUSTAINABILITY DEVELOPMENT SIKA’S NET ZERO ROADMAP – DRIVING THE TRANSFORMATION OUR KEY LEVERS Education and capacity building to improve material efficiency and circularity Accelerated use Continued of alternative focus on low carbon operational supplies efficiencies Partner
Slide 16: Climate Change – Cooperation for Clinker Reduction and Circular Economy
CLIMATE CHANGE – STRONG SUSTAINABILITY DEVELOPMENT COOPERATION FOR CLINKER REDUCTION AND CIRCULAR ECONOMY Project description Collaboration with the world’s largest iron ore mining company, the Swedish firm LKAB. Thanks to Sika admixtures, a new "Zero Cement" concrete has been developed. Around
Slide 17: Climate Change – Formulation: In-Depth Research into New Solutions
CLIMATE CHANGE – STRONG SUSTAINABILITY DEVELOPMENT FORMULATION – IN-DEPTH RESEARCH INTO NEW SOLUTIONS Sika is looking to partially replace WASTE AS AN WASTE USED cement in all mortar categories over OPPORTUNITY AS SCM the next few years The goal is to increase the substitution rate – which avera
Slide 18: Digitalization and Automation – Complex Reinforced Concrete Structures with Robots
GROWTH DRIVER DIGITALIZATION AND AUTOMATION COMPLEX REINFORCED CONCRETE STRUCTURES WITH ROBOTS Sika joined forces with formwork and scaffolding application specialist PERI to invest in the Swiss start-up MESH AG, a spin-off of ETH Zurich MESH AG combines 3D technology and robotics Robots produ
Slide 19: Digitalization and Automation – Construction Is on the Move
GROWTH DRIVER DIGITALIZATION AND AUTOMATION DIGITALIZATION – CONSTRUCTION IS ON THE MOVE By moving software and technology out of offices and onto job sites, our industry has greater potential to add value and complete construction projects on-time and on-budget. Situation 10-15 years ago Situation
Slide 20: Digitalization and Automation – Helping Customers Increase Quality and Efficiency
GROWTH DRIVER DIGITALIZATION AND AUTOMATION HELPING CUSTOMERS TO INCREASE QUALITY AND EFFICIENCY RAW MATERIAL ANALYSIS MIX DESIGN TRANSIT & DELIVERY Analyze properties of sand using Provide recommendations to Suite of sensors measure Sand Analyzer app customers on how to improve properties of wet co
Slide 21: Emerging Market Growth – Southeast Asia Markets Growing Above-Average
EMERGING MARKET GROWTH – SOUTHEAST ASIA MARKETS GROWING ABOVE-AVERAGE Countries with Sika presence Strong Growth in construction sector: expected Factories investment volume in 2026 is over CHF 500 billion Infrastructure investments by 2026 increase by 27.5% in Southeast Asia Strong local pres
Slide 22: Southeast Asia – Major Infrastructure Project: Metro Expansion Bangkok
EMERGING MARKET GROWTH – SOUTHEAST ASIA MAJOR INFRASTRUCTURE PROJECT: METRO EXPANSION BANGKOK Project description Connection between the eastern part of Bangkok with the city center Sika's expertise and leading products for the most rigorous tunneling requirements The MRT Orange Line will play
Slide 23: Southeast Asia – Sustainable Flagship Project: The Forestias
EMERGING MARKET GROWTH – SOUTHEAST ASIA INVESTMENTS IN SUSTAINABLE FLAGSHIP PROJECT: THE FORESTIAS Project description The Forestias is Thailand largest new build project The sustainable project will create an urban district of the future on the outskirts of Bangkok In August 2022, The Foresti
Slide 24: Southeast Asia – Booming Distribution Business in Indonesia
EMERGING MARKET GROWTH – SOUTHEAST ASIA BOOMING DISTRIBUTION BUSINESS IN INDONESIA Strong growth potential Sika is rolling out its distribution model to other Asian countries, with a special focus on Indonesia With a population of 274 million, the country is viewed as a key growth market In 20
Slide 25: Our People, Our Values: Our Key Drivers
OUR PEOPLE, OUR VALUES PERFORMING BEYOND THE EXPECTED ALL TOGETHER OUR KEY DRIVERS Courage for Innovation Customer First Empowerment and Respect Manage for Results Sustainability and Integrity 25
Slide 26: 4. Successful Closing of MBCC Acquisition
4. SUCCESSFUL CLOSING OF MBCC ACQUISITION
Slide 27: Successful Closing of MBCC Acquisition on May 2: Complementary in Many Ways
SUCCESSFUL CLOSING OF MBCC ACQUISITION ON MAY 2 MBCC IS COMPLEMENTARY IN MANY WAYS Solutions Channel Geography Supply Chain 27
Slide 28: Sika to Reach Sales in Excess of CHF 12 Billion in 2023
SUCCESSFUL CLOSING OF MBCC ACQUISITION SIKA TO REACH SALES IN EXCESS OF CHF 12 BILLION IN 2023 Sika acquires MBCC business generating CHF From MBCC Group, 2.1 billion net sales in 2022 CHF 2.1 billion* to be Annual synergies expected in the range of integrated in Sika CHF 160 – 180 million by 20
Slide 29: 5. Outlook
5. OUTLOOK ® BUILDING TRUST Bs
Slide 30: Outlook 2023: Continuation of Successful Growth Strategy
OUTLOOK 2023 CONTINUATION OF SUCCESSFUL GROWTH STRATEGY For 2023 Sika expects sales to increase by 6-8% in local currencies* Expected sales Over-proportional EBIT increase expected for increase in LC* 6-8% the year* Sika to reach sales in excess of CHF 12 billion in 2023 Confirmation of 2023
Slide 31: Thank You for Your Attention
a 24 srtess 3 il THANK YOU FOR YOUR ATTENTION ® BUILDING TRUST Bs
Slide 32: 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