Sika Ag · SIX:SIKA
Sika — Investor Presentation (January 2017)
36 slides from Sika's investor presentation, January 2017
Slide 1: Record Sales with Growth in All Regions
RECORD SALES WITH GROWTH IN ALL REGIONS SIKA INVESTOR PRESENTATION JANUARY 2017
Slide 2: 1. Continued Growth Momentum in 2016
1. CONTINUED GROWTH MOMENTUM IN 2016
Slide 3: Record Sales with Growth in All Regions in 2016
RECORD SALES WITH GROWTH IN ALL REGIONS IN 2016 5.6% local currency sales growth (4.7% organic growth) to CHF 5.75 billion Growth in all regions with strong above-average growth in USA, Mexico, UK, Africa, Southeast Asia, Australia and Automotive business 9 new production plants in Greece, Eth
Slide 4: Growth Momentum Continues: 2016 5.6% Sales Growth
GROWTH MOMENTUM CONTINUES 2016 5.6% SALES GROWTH (4.7% IN CHF) + 7.8% + 4.8% + 3.6% 0.92 North America 1.08 + 5.0% Asia/Pacific 2.70 0.56 EMEA Latin America 12M / 2015 12M / 2016 (in CHF billion, growth in LC) 4
Slide 5: Sales 2016: Growth in All Regions
SALES 2016 GROWTH IN ALL REGIONS + 4.8 % + 7.8 % + 3.6 % + 5.0 % Growth (in LC) - 1.1 % + 2.1 % + 2.6 % - 11.0 % FX impact + 1.1 % + 2.0 % + 0.5 % + 0.0 % Acquisition 21% 79% Construction Industry EMEA North Asia/Pacific Latin America America 5
Slide 6: Sales Growth 2012 to 2016: Strong Organic Growth
SALES GROWTH 2012 TO 2016 STRONG ORGANIC GROWTH 16% 14% 13.0% 12% 10% 9.4% 5.7% 3.5% 8% 6.2% in LC 6% 5.3% 5.6% acquisition 2.2% 0.9% organic 4% 7.3% 3.5% 5.9% 4.7% 4.0% 2% 1.8% 0% 12M 2012 12M 2013 12M 2014 12M 2015 12M 2016 in CHF mn 2012 2013 2014 2015 2016 Sales 4,828.9 5,142.2 5,571.3 5,489.2 (
Slide 7: Key Investments in 2016: Continued Supply Chain Expansion
KEY INVESTMENTS IN 2016 CONTINUED SUPPLY CHAIN EXPANSION 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) 2nd plant in Thai
Slide 8: Key Investments in 2016: Expansion with Own National Subsidiaries
KEY INVESTMENTS IN 2016 EXPANSION WITH OWN NATIONAL SUBSIDIARIES New subsidiaries: Kuwait (March 2016) Nicaragua (June 2016) Cameroon (August 2016) Djibouti (August 2016) Now present in 97 countries with own operations 8
Slide 9: Acquisitions as Growth Platform: L.M. Scofield
KEY INVESTMENTS IN 2016 ACQUISITIONS AS GROWTH PLATFORM 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 Continued strong executi
Slide 10: Acquisitions as Growth Platform: FRC Industries
KEY INVESTMENTS IN 2016 ACQUISITIONS AS GROWTH PLATFORM FRC Industries, USA Producer of high-quality synthetic polypropylene fibers for concrete Strong growth trend for concrete fibers in the US, out-pacing overall construction growth Expansion of concrete additives portfolio enables Sika to r
Slide 11: Acquisitions as Growth Platform: Ronacrete
KEY INVESTMENTS IN 2016 ACQUISITIONS AS GROWTH PLATFORM Ronacrete (Far East) Ltd., Hong Kong Leading suppliers of repair mortars, tile adhesives and other mortar products in Hong Kong Strong specification business and a preferred partner for private and public key developers Extension of manuf
Slide 12: Acquisitions as Growth Platform: Rmax
KEY INVESTMENTS IN 2016 ACQUISITIONS AS GROWTH PLATFORM Rmax Operating, LLC, USA Market leader in the production of polyiso insulation products for complete Building Envelope solutions (roofing and wall systems) CHF 75 million sales New technology and know-how will accelerate growth and drive
Slide 13: Good Start in 2017: Key Initiatives Continue
GOOD START IN 2017 KEY INITIATIVES CONTINUE Bitbau Dörr, Austria Leading waterproofing system manufacturer CHF 50 million sales Sika will be able to offer its customers a wider range of durable, high-grade waterproofing systems based on polymer-modified bitumen membranes Strong growth opport
Slide 14: Net Sales and EBIT Overview 2011-2016
NET SALES AND EBIT – OVERVIEW 2011-2016 CONTINUATION OF PROFITABLE GROWTH STRATEGY 14
Slide 15: Outlook
OUTLOOK 2016: Above-average profit increase resulting in operating profit (EBIT) between CHF 780 and 800 million 2017: 6-8% rise in sales expected to reach CHF 6 billion for the first time Disproportionately high increase in profit Opening of 6 to 8 new factories and 3 to 4 national subsidia
Slide 16: 2. Successful Strategy 2018 Execution
2. SUCCESSFUL STRATEGY 2018 EXECUTION
Slide 17: Strategy 2018: Sika's Growth Model Will Deliver
STRATEGY 2018 SIKA’S GROWTH MODEL WILL DELIVER MARKET PENETRATION 6 - 8% GROWTH PER YEAR 6 - 8 NEW PLANTS PER INNOVATION YEAR 100 NATIONAL SUBSIDIARIES BY 2018 EMERGING MARKETS 12 - 14% OPERATING PROFIT PER YEAR ACQUISITIONS > 8% OPERATING FREE CASH FLOW PER YEAR 25% RETURN ON CAPITAL EMPLOYED BY 20
Slide 18: Strategy 2018 Achievements Since 2012
STRATEGY 2018 – ACHIEVEMENTS SINCE 2012 A PROVEN TRACK RECORD OF DELIVERY PILLARS OF THE GROWTH MODEL ACHIEVEMENTS • Successful Target Market concept MARKET PENETRATION • Megatrends driving growth • 333 new patents filed INNOVATION • 20 Global Technology Centers • 51 new plants opened EMERGING M
Slide 19: Market Penetration: Focus on Attractive Markets
MARKET PENETRATION FOCUS ON ATTRACTIVE MARKETS: CROSS-SELLING, LIFE-CYCLE MANAGEMENT, A STRONG BRAND Concrete Waterproofing Roofing Flooring & Coating Sealing & Bonding Refurbishment Industry 19
Slide 20: Megatrends Drive Our Growth
MEGATRENDS DRIVE OUR GROWTH: URBANIZATION, NEW VEHICLE DESIGN & SUSTAINABILITY Increasing world population with Higher demand for urbanization and Increased safety, fire, infrastructure and megacities water, earthquake and refurbishment quality requirements solutions Sustainability: Rising demand fo
Slide 21: We Are Innovation: Strong Track Record
WE ARE INNOVATION STRONG TRACK RECORD 333 880 377 20 Patents were Employees are Invention Technology filed since dedicated to disclosures Centers 2012 Research and since 2012 world-wide Development 21
Slide 22: Emerging Markets Build-up Since 2012
EMERGING MARKETS BUILD-UP SINCE 2012 GROWTH POTENTIAL IN NEW MARKETS 51 12.5% 20 37% New Average sales New of turnover plants growth national in Emerging opened subsidiaries Markets 22
Slide 23: Acquisitions Since 2012: Growth Platforms for the Future
ACQUISITIONS SINCE 2012 GROWTH PLATFORMS FOR THE FUTURE In all In all 21 671 7 4 Acquisitions million CHF Target Regions turnover Markets 23
Slide 24: Sika's Values and Principles
SIKA’S VALUES AND PRINCIPLES STRONG CORPORATE CULTURE Customer first Courage for innovation Sustainability & Integrity Empowerment and Respect Manage for results 24
Slide 25: 3. Two Examples of Strategy Execution in the Regions
3. TWO EXAMPLES OF STRATEGY EXECUTION IN THE REGIONS
Slide 26: Strong Strategy Execution in Africa
STRONG STRATEGY EXECUTION IN AFRICA +23% 9 sales growth in 9M 2016 new plants since 2012 18 subsidiaries 688 10 added employees since 2012 26
Slide 27: Major Construction Projects with Sika Products
MAJOR CONSTRUCTION PROJECTS WITH SIKA PRODUCTS Bridge over Maputo Bay, Mozambique Dangote fertilizer plant Lagos, Nigeria Mall of Egypt, Cairo, Egypt Luanda International Airport, Angola 27
Slide 28: Accelerated Build Up of Presence in USA
ACCELERATED BUILD UP OF PRESENCE IN USA 25 plants in USA and Canada 13 new plants added since 2012 Presence in residential Investment focus 10% market through Home Depot on fast growing sales growth (2,000 stores) and metro areas in 9M 2016 Lowes (1,800 stores) 28
Slide 29: Hudson Yards Project NYC
HUDSON YARDS PROJECT NYC SIKA IS HELPING TO BUILD A NEW CITY IN A CITY 29
Slide 30: 4. Saint-Gobain's Hostile Takeover Attempt
4. SAINT-GOBAIN’S HOSTILE TAKEOVER ATTEMPT
Slide 31: Fundamental Reasons to Oppose Hostile Takeover Attempt by Saint-Gobain
FUNDAMENTAL REASONS TO OPPOSE HOSTILE TAKEOVER ATTEMPT BY SAINT-GOBAIN 1. Lack of industrial logic 2. Saint-Gobain will execute control with only 16% of the capital 3. No adequate representation of public shareholders on the Board 4. Saint-Gobain is a direct competitor of Sika 5. Sika loses A- credi
Slide 32: Sika Articles of Association Article 4: Restriction of Transferability
SIKA ARTICLES OF ASSOCIATION ARTICLE 4 RESTRICTION OF TRANSFERABILITY, THE 5% THRESHOLD “The Board of Directors reserves the right to refuse an acquirer of registered shares as shareholder, if the number of registered shares held by him exceeds 5% of the total number of registered shares entered in
Slide 33: Decision of the Cantonal Court of Zug: All Claims of SWH Dismissed
DECISION OF THE CANTONAL COURT OF ZUG ALL CLAIMS OF SWH DISMISSED In the proceedings before the Cantonal Court of Zug Schenker-Winkler Holding AG (SWH) made the following requests: 1. Annul and declare void the AGM 2015 resolutions regarding the election of Ms Ribar and Messrs Hälg (President), Saut
Slide 34: Decision of the Cantonal Court of Zug: Main Reasoning
DECISION OF THE CANTONAL COURT OF ZUG MAIN REASONING The Court held on the basis of article 4 of Sika’s Articles of Association that the share transfer restriction applies to the indirect purchase of the Sika shares held by the Burkard Family through SWH. The Court considered the attempted remov
Slide 35: 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
Slide 36: Thank You for Your Attention
THANK YOU FOR YOUR ATTENTION ® BUILDING TRUST Bs