Sika Ag · SIX:SIKA
Sika — Investor Day (2018)
44 slides from Sika's investor day presentation, 2018
Slide 1: Region Americas – Going for Megacities
REGION AMERICAS – GOING FOR MEGACITIES CHRISTOPH GANZ, REGIONAL MANAGER AMERICAS SIKA CAPITAL MARKETS DAY 2018
Slide 2: Table of Contents
TABLE OF CONTENTS 1. FROM NORTH AMERICA AND LATIN AMERICA TO REGION AMERICAS 2. STRATEGY GOING FORWARD 3. GOING FOR MEGACITIES 4. BIG MEGACITY PROJECTS 2
Slide 3: From North America and Latin America to Region Americas
1. FROM NORTH AMERICA AND LATIN AMERICA TO REGION AMERICAS
Slide 4: Region Americas Campaign Draft
REGION AMERICAS CAMPAIGN DRAFT 4
Slide 5: The underlying rationale: Making 1+1=3
FROM NORTH AMERICA AND LATIN AMERICA TO REGION AMERICAS The underlying rationale Making 1+1=3 Net sales >CHF 1.8 billion and EBIT >CHF 300 million 20 countries 56 plants >4,000 employees in total, of whom >2,000 people in sales related functions 3 Global and 4 Regional R&D Centers All
Slide 6: Drivers
FROM NORTH AMERICA AND LATIN AMERICA TO REGION AMERICAS Drivers Many key owners, developers, suppliers and contractors operate in North and Latin America Emerging and mature markets, all with great infrastructure build-up potential Latin America with special strength in distribution channels,
Slide 7: Argos: large Sika admixture customer in Latin America
ARGOS: LARGE SIKA ADMIXTURE CUSTOMER IN LATIN AMERICA BUT: NO SIKA CUSTOMER YET IN THE USA 7
Slide 8: Drivers
FROM NORTH AMERICA AND LATIN AMERICA TO REGION AMERICAS Drivers Many key owners, developers, suppliers and contractors operate in North and Latin America Emerging and mature markets, all with great infrastructure build-up potential Latin America with special strength in distribution channels,
Slide 9: Latin America with strong position in distribution channels
LATIN AMERICA WITH STRONG POSITION IN DISTRIBUTION CHANNELS 9
Slide 10: Drivers
FROM NORTH AMERICA AND LATIN AMERICA TO REGION AMERICAS Drivers Many key owners, developers, suppliers and contractors operate in North and Latin America Emerging and mature markets, all with great infrastructure build-up potential Latin America with a special strength in Distribution channels
Slide 11: Success factors
FROM NORTH AMERICA AND LATIN AMERICA TO REGION AMERICAS Success factors Bringing new business initiatives from North America to Latin America and vice versa: liquid applied membranes, interior finishing, distribution and retail, insulation, park decks, food & beverage accounts, mining, PVC and bit
Slide 12: Quick-win synergies from Latin America to North America
NEW REGION AMERICAS QUICK-WIN SYNERGIES FROM LATIN AMERICA TO NORTH AMERICA 1. Bituminous sheets USA and Canada are huge bituminous roofing markets Bituminous sheets from Texsa Mexico to Sika Canada Peel and stick sheets from Lwart Brazil to Target Market Waterproofing of Sika USA 2. Acrylic t
Slide 13: Quick-win synergies from North America to Latin America
NEW REGION AMERICAS QUICK-WIN SYNERGIES FROM NORTH AMERICA TO LATIN AMERICA 1. Flooring Flooring systems for Food & Beverage industry Parking garage systems: transfer of successful Sika US business model into Latin America Butterfield/Scofield colored concrete floors 2. Building Envelope Pol
Slide 14: Pan-American synergies in roofing projects
PAN-AMERICAN SYNERGIES IN ROOFING PROJECTS ROOFING FOR AN ELECTRONICS PLANT IN MEXICO 25,000 m2 of Sikaplan® and Sika Poliyso insulation. Improved teamwork within new region Americas: Sika Mexico acquired the job, roofing membranes supplied by Sika® Sarnafil® USA and insulation boards supplied b
Slide 15: Success factors
FROM NORTH AMERICA AND LATIN AMERICA TO REGION AMERICAS Success factors Bringing new business initiatives from North America to Latin America and vice versa: liquid applied membranes, interior finishing, distribution and retail, insulation, park decks, food & beverage accounts, mining, PVC and bit
Slide 16: Synergies
FROM NORTH AMERICA AND LATIN AMERICA TO REGION AMERICAS Synergies Growing procurement power versus Americas suppliers Large synergy potentials for operations (automation, packaging) R&D synergies (for example acrylic and bitumen technology) Construction in southern US with strong Latino infl
Slide 17: Strategy Going Forward
2. STRATEGY GOING FORWARD ® BUILDING TRUST Ds
Slide 18: Merge the best of both into one strong Region Americas
STRATEGY GOING FORWARD MERGE THE BEST OF BOTH INTO ONE STRONG REGION AMERICAS Merging the best of both former regions into a single strong Americas strategy Double-digit profitable growth concept New Pan-American business initiatives: mining, park decks, retail, Food & Beverage, Roofing Succ
Slide 19: New Sika factory in Houston, Texas ramping up
NEW SIKA FACTORY IN HOUSTON, TEXAS RAMPING UP Mortars plant Sika® ViscoCrete® reactor and admixtures 19
Slide 20: New Sika factories in Peru and Guatemala
NEW SIKA FACTORIES IN PERU AND GUATEMALA OPENING UP LATER THIS YEAR To be opened in 2018: Sika plant in Lucomo, Peru To be opened in 2018: Sika plant in Palin, Guatemala 20
Slide 21: Strategy going forward
STRATEGY GOING FORWARD Bringing more automation into our factories E-Sika: leadership online markets too Acquisitions with rollout potentials right across the Americas New area structure in place: USA, Canada, Brazil, Mexico & Caribbean, Latin America North, Latin America South New Pan-Ame
Slide 22: Bringing more automation into our factories
BRINGING MORE AUTOMATION INTO OUR FACTORIES 22
Slide 23: Strategy going forward
STRATEGY GOING FORWARD Bringing more automation into our factories E-Sika: leadership in online markets too Acquisitions with rollout potentials right across the Americas New area structure in place: USA, Canada, Brazil, Mexico & Caribbean, Latin America North, Latin America South New Pan-
Slide 24: Exciting acquisitions close strategic gaps
EXCITING ACQUISITIONS CLOSE STRATEGIC GAPS NEW BUSINESS OPPORTUNITIES FOR ALL OF SIKA AMERICAS 24
Slide 25: Strategy going forward
STRATEGY GOING FORWARD Bringing more automation into our factories E-Sika: being a leader also in online market places Acquisitions with roll out potentials in all of the Americas New area structure in place: USA, Canada, Brazil, Mexico & Caribbean, Latin America North, Latin America South
Slide 26: Going for Megacities
3. GOING FOR MEGACITIES ® BUILDING TRUST Ds
Slide 27: Going for megacities to capture market potential of urbanization
GOING FOR MEGACITIES TO CAPTURE MARKET POTENTIAL OF URBANIZATION BIG CITIES DRIVING OUR FOOTPRINT OF PLANTS AND WAREHOUSES 27
Slide 28: Market and project penetration through cross-selling
GOING FOR MEGACITIES MARKET AND PROJECT PENETRATION THROUGH CROSS-SELLING All project types exist in large cities – therefore all our technologies in demand Special requirements in large cities: fast systems, easy-to-apply products with little labor usage, 24/7 supply chain, “24/7” on-site techn
Slide 29: Going for megacities to capture the market potential of urbanization
GOING FOR MEGACITIES TO CAPTURE THE MARKET POTENTIAL OF URBANIZATION Higher growth rates in metro areas: more USD per salesperson, more projects concentrated in a smaller space Target not only the largest cities but primarily the fastest-growing ones, such as Nashville TN or Phoenix AZ Project
Slide 30: Marketing Shower campaigns are growth turbos
MARKETING SHOWER CAMPAIGNS ARE GROWTH TURBOS INVESTMENTS THAT PAY OFF IMMEDIATELY 30
Slide 31: Going for megacities to capture the market potential of urbanization
GOING FOR MEGACITIES TO CAPTURE THE MARKET POTENTIAL OF URBANIZATION Sika tracks every important project in big cities long before construction starts Monthly sales number tracking by city, by Target Market and by key project drives our strategic decisions regarding where to hire more sales pers
Slide 32: Large potential for megacity penetration in Latin America
LARGE POTENTIAL FOR MEGACITY PENETRATION IN LATIN AMERICA USA: LATIN AMERICA: 37% 23% of sales generated in of sales generated in 20 biggest cities 20 biggest cities 32
Slide 33: Big Megacity Projects
4. BIG MEGACITY PROJECTS ® BUILDING TRUST Ds
Slide 34: Key Project: Golden State Warriors Arena, San Francisco
KEY PROJECT GOLDEN STATE WARRIORS ARENA, SAN FRANCISCO, CA Project Description Chase Arena & Towers for the Golden State Warriors – 2018 NBA Champions Project value: USD 1 billion Project Details Gensler – Architect 100% privately financed (first in the nation) Specification flipped to PVC Sika Oppo
Slide 35: Key Project: CONRAC San Diego International Airport
KEY PROJECT CONRAC SAN DIEGO INTERNATIONAL AIRPORT, CA Project Description Consolidated rental car facility Project Value: USD 100 million Project Requirements Off-site facilities for improved safety at major airports Sika Opportunities Sika Traffic Coatings Resinous Coatings Sealers Sika Roofing Jo
Slide 36: Key Project: New Water Plant, Houston, Texas
KEY PROJECT NEW WATER PLANT, HOUSTON, TEXAS Project Description Water purification plant to serve growing demand and more stringent water quality regulations. Project value: USD 1.4 billion. Project Requirements Multiple heavy civil concrete structures 19 total bid packages Watertight and low
Slide 37: Key Project: New Mexico City Airport
KEY PROJECT NEW MEXICO CITY AIRPORT Project Description 2nd busiest airport in Latin America Project value: USD 9 billion Sika Opportunities High-performance grouts meeting special seismic requirements Several business opportunities for all Sika Target Markets 37
Slide 38: Key Project: Torres Atrio, Bogota, Colombia
KEY PROJECT TORRES ATRIO, BOGOTA, COLOMBIA Project Description Atrio leasing offices building Location: Bogota Owner: Chaid Neme Cia. General Contractor: Arpro Project value: USD 300 million Sika Solutions Roofing: Sarnafil® G476-15 green roof Repair mortars, grouts Flooring: Dry Shakes, cementitiou
Slide 39: Key Project: Sarmiento Rail Tunnel, Buenos Aires
KEY PROJECT SARMIENTO RAIL TUNNEL, BUENOS AIRES, ARGENTINA Project Description Part of government program to modernize the urban rail system. 4-year execution; in 3 stages 1st stage: 22.4 km of tunnel Sika Solutions (1st stage) Admixtures for onsite-cast and precast concrete. Sika® Sigunit® 39
Slide 40: Key Project: Heineken Brewery, Bogota, Colombia
KEY PROJECT HEINEKEN BREWERY, BOGOTA, COLOMBIA Project Description Facilities for beer production. Location: Sesquilé, near to Bogotá. Owner: Central Cervecera Colombia. General Contractor: Consorcio CCC Sika Solutions Fire protective coatings for steel structures 40
Slide 41: Key Project: Rail Link Mexico City - Toluca
KEY PROJECT RAIL LINK MEXICO CITY - TOLUCA Project Description 55 km intercity rail link Project value: USD 2.7 billion Sika Solutions Sika supplies whole range of concrete admixtures 41
Slide 42: Key Project: Metro Line 6, Sao Paulo, Brazil
KEY PROJECT METRO LINE 6, SAO PAULO, BRAZIL Project Description Total 16 km metro line 15 stations Project value: USD 1.6 billion Estimated construction period: 2019-2023 Sika Solutions Concrete admixtures Fibers for shotcrete Admixtures for tunnel boring machine excavation Waterproofing solutions G
Slide 43: Thank you for your attention
THANK YOU FOR YOUR ATTENTION | BUILDING TRUST ‘
Slide 44: 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