Sika Ag · SIX:SIKA

Sika — H1 2016 Earnings Presentation

12 slides from Sika's earnings presentation, Jul 29, 2016

  1. Slide 1: Dynamic Growth and Record Margins in First Half of 2016

    DYNAMIC GROWTH AND RECORD MARGINS IN FIRST HALF OF 2016 SIKA INVESTOR PRESENTATION JULY 29, 2016

  2. Slide 2: Dynamic Growth and Record Margins in First Half of 2016

    DYNAMIC GROWTH AND RECORD MARGINS IN FIRST HALF OF 2016  Sales growth of 7.6% (6.9% in CHF) to CHF 2,806 million  Growth in all regions: Double-digit in the USA, Canada, Argentina, Chile, UK, Africa, Southeast Asia, the Pacific area, and Automotive  High growth in profitability: EBIT +22.6%, net

  3. Slide 3: Key Figures Half-Year 2016: Above-Average Increase in Profit

    KEY FIGURES HALF-YEAR 2016 ABOVE-AVERAGE INCREASE IN PROFIT in CHF mn 2015 2016 Δ% Net sales 2,625.2 2,806.2 6.9% Gross results as % of net sales 54.4 55.6 EBITDA 370.2 439.7 +18.8% EBIT 288.6 353.7 +22.6% Net profit 197.3 246.3 +24.8% Operating free cash flow 43.0 106.0 ROCE in % 22.8 25.5 3

  4. Slide 4: Sales Growth by Quarter: Strong Organic Growth with 6.5%

    SALES GROWTH BY QUARTER STRONG ORGANIC GROWTH WITH 6.5% 12% 10% 8.3% 8.3% 7.0% 8% 6.0% 2.5% 2.9% 0.5% 6% 5.1% 5.3% in LC 1.1% 2.6% acquisition 4% 2.2% organic 2% 4.0% 3.4% 3.1% 5.8% 5.4% 6.5% 0% Q1 PY Q2 PY Q3 PY Q4 PY Q1 CY Q2 CY in CHF mn Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Quarterly 1,195.3 1,429

  5. Slide 5: Sales Half-Year 2016: Growth in All Regions

    SALES HALF-YEAR 2016 GROWTH IN ALL REGIONS + 7.5 % +15.9 % - 9.8 % + 5.3 % Growth in CHF + 6.6 % +12.7 % + 5.9 % + 4.6 % Growth in LC + 0.9 % + 3.2 % - 15.7 % + 0.7 % FX impact + 2.4 % + 1.7 % + 0.0 % + 1.1 % Acquisition 22% 78% Construction Industry 1,335 441 274 510 in CHF mn EMEA North America La

  6. Slide 6: Growth Momentum Continues Half-Year 2016: 7.6% Sales Growth

    GROWTH MOMENTUM CONTINUES HALF-YEAR 2016 7.6% SALES GROWTH (6.9% IN CHF) + 12.7% + 6.6% + 4.6% 381 441 North America 484 510 + 5.9% Asia/Pacific 1,242 1,335 304 274 EMEA Latin America HY 1 / 2015 HY 1 / 2016 (in CHF million, growth in LC) 6

  7. Slide 7: Five-Year Overview – Half-Year Figures: Continuously Improving Margins

    FIVE-YEAR OVERVIEW – HALF-YEAR FIGURES CONTINUOUSLY IMPROVING MARGINS 275 9.0 % EBIT IN CHF 400 12.6% NET PROFIT IN CHF 8.8% +24.8% 12. 0% 375 11.0% +22.6% 250 8.0 % 7.5% 246 350 In % of sales 10.0% 354 In % of sales 225 10. 0% 325 9.2% 6.7% 7.0 % 8.6% 300 200 8.0 % 5.9% 275 289 197 6.0 % 5.4% 266 1

  8. Slide 8: Accelerated Build-Up of Growth Markets: Investments in First Half Year 2016

    ACCELERATED BUILD-UP OF GROWTH MARKETS INVESTMENTS IN FIRST HALF YEAR 2016 Opening of Sika plants:  2nd plant in Greece (Kryoneri (Athens), January 2016)  1st plant in Myanmar (Yangon, February 2016)  1st plant in Cambodia (Phnom Penh, February 2016)  4th plant in Canada (Vancouver, March 2016)

  9. Slide 9: Accelerated Build-Up of Growth Markets: Acquisition in First Half Year 2016

    ACCELERATED BUILD-UP OF GROWTH MARKETS ACQUISITION IN FIRST HALF YEAR 2016 L.M. Scofield, USA  US‐based market leader for concrete color additives (ready‐mixed concrete) and decorative treatments for refurbishment  Buying new technology and spreading it out to Sika’s existing customer base  Conti

  10. Slide 10: Outlook: Confirmation of 2016 Annual Targets

    OUTLOOK CONFIRMATION OF 2016 ANNUAL TARGETS  6-8% sales growth  Disproportionately higher rise in margins  Opening of 8 to 10 new factories  3 to 4 new national subsidiaries  Unknown outcome of Saint-Gobain’s hostile takeover attempt 10

  11. Slide 11: Forward-Looking Statements

    FORWARD-LOOKING STATEMENTS 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

  12. Slide 12: Thank You for Your Attention

    THANK YOU FOR YOUR ATTENTION ® BUILDING TRUST Bs

Sika — H1 2016 Earnings Presentation on 6ix