Sika Ag · SIX:SIKA
Sika — Q1 2025 Earnings Presentation
41 slides from Sika's earnings presentation, Apr 15, 2025
Slide 1: Sika is generating growth in Q1 despite unpredictable markets and continues investing worldwide
SIKA IS GENERATING GROWTH IN Q1 DESPITE UNPREDICTABLE MARKETS AND CONTINUES INVESTING WORLDWIDE SIKA COMPANY PRESENTATION APRIL 15, 2025
Slide 2: Sales Q1
SALES Q1 ® BUILDING TRUST Bs
Slide 3: Sika is generating growth in Q1 and investing worldwide
SIKA IS GENERATING GROWTH IN Q1 AND INVESTING WORLDWIDE ORGANIC GROWTH OF 0.9% – ACQUISITION EFFECT OF 1.0% ▪ Growth in local currencies of +1.9% (growth in CHF: +1.1%) ▪ Q1 sales of CHF 2,678.3 million (previous year: CHF 2,648.0 million) ▪ Organic growth of 0.9% ▪ Acquisition effect of 1.0% ▪ Targ
Slide 4: Organic growth of 0.9% – acquisition effect of 1.0%
SIKA IS GENERATING GROWTH IN Q1 AND INVESTING WORLDWIDE ORGANIC GROWTH OF 0.9% – ACQUISITION EFFECT OF 1.0% +4.9 % +0.7 % +0.0 % +1.9 % 0.93 1.20 0.54 2.68 AMERICAS EMEA Asia/Pacific GROUP Q1 2024 Q1 2025 (in CHF billion, growth in LC) 4
Slide 5: Growth by region and target market
SIKA IS GENERATING GROWTH IN Q1 AND INVESTING WORLDWIDE ORGANIC GROWTH OF 0.9% – ACQUISITION EFFECT OF 1.0% -0.5% +3.5% +1.0% Growth in CHF +0.7% +4.9% +0.0% Growth in LC -1.2% -1.4% +1.0% FX impact +0.3% +2.5% +0.4% Acquisition 16% 84% Construction Automotive and Industry EMEA Americas Asia/Pacific
Slide 6: Targeted investments in future growth
TARGETED INVESTMENTS IN FUTURE GROWTH KEY INVESTMENTS IN 2025 New plants in Singapore, Acquisition of Cromar Acquisition of Elmich Pte Ltd Acquisition of HPS North China, Ecuador and Building Products in the UK in Singapore (February 2025) America, Inc. (March 2025) Kazakhstan (Jan - April 2025) (Ma
Slide 7: Highlights 2024
HIGHLIGHTS 2024 ® BUILDING TRUST Bs
Slide 8: Sika is a growth compounder
HIGHLIGHTS 2024 SIKA IS A GROWTH COMPOUNDER 8
Slide 9: With strong profit generation over the years
HIGHLIGHTS 2024 WITH STRONG PROFIT GENERATION OVER THE YEARS 9
Slide 10: Jump in net profit of 17.4%
HIGHLIGHTS 2024 JUMP IN NET PROFIT OF 17.4% 10
Slide 11: EPS growth underscoring long-term value
DRIVING VALUE WITH EPS AND DIVIDEND GROWTH EPS GROWTH UNDERSCORING LONG-TERM VALUE EPS in CHF, diluted CHF/share +49% growth 7.76 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 in CHF, aligned 2020 2021 2022 2023 2024 11
Slide 12: Reliable and increasing dividend payout
DRIVING VALUE WITH EPS AND DIVIDEND GROWTH RELIABLE AND INCREASING DIVIDEND PAYOUT Dividend payout in CHF CHF/share +200% growth 4.00 3.50 3.60* 3.00 2.50 2.00 1.50 1.00 0.50 *pursuant to proposal of 0.00 Annual General Meeting 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 in CHF, aligned 1
Slide 13: Sika with record sales 2024 of CHF 11.76 billion
SIKA WITH RECORD SALES 2024 OF CHF 11.76 BILLION GROWTH IN ALL REGIONS +11.2 % +7.3 % +2.4 % +7.4 % 4.10 5.10 2.57 11.76 AMERICAS EMEA ASIA/PACIFIC GROUP 2023 2024 (in CHF billion, growth in LC) 13
Slide 14: Sika gaining market share over the years
SIKA GAINING MARKET SHARE OVER THE YEARS OUTGROWING ITS PEERS 21% 21% 17.1% 15.8% 16% 2.0% 16% 14.5% 2.7% 11% 11% in LC 7.4% 15.1% 12.7% 13.3% acquisition 6% 6% 13.1% 13.2% organic 6.3% peer growth (organic) 1% 1% 1.2% 1.1% -0.9% -3.1% -4% -4% in CHF bn FY 2021 FY 2022 FY 2023 FY 2024 2021 2022 2023
Slide 15: High employee engagement score
HIGHLIGHTS 2024 HIGH EMPLOYEE ENGAGEMENT SCORE HIGH ENGAGEMENT SCORE 86 Fueled by strong identification with company and confidence ENGAGEMENT SCORE in management and strategy. 15
Slide 16: Safety first – protecting our people
HIGHLIGHTS 2024 SAFETY FIRST – PROTECTING OUR PEOPLE 9.6 Sika Target 2024 (Lost Time Accidents per 3.4 1,000 FTEs) 2021 2022 2023 2024 16
Slide 17: Key non-financial metrics
HIGHLIGHTS 2024 KEY NON-FINANCIAL METRICS 17
Slide 18: Sika with record results – stronger than ever
HIGHLIGHTS 2024 AT A GLANCE SIKA WITH RECORD RESULTS – STRONGER THAN EVER ▪ Record sales of CHF 11.76 billion (+4.7% in CHF), increase in local currencies +7.4% ▪ Increase in material margin to 54.5% (2023: 53.6%) ▪ 11.0% growth in operating profit before depreciation and amortization (EBITDA) to CH
Slide 19: Successful first year of Strategy 2028
SUCCESSFUL FIRST YEAR OF STRATEGY 2028
Slide 20: Strategy 2028: first year of successful execution
STRATEGY 2028 FIRST YEAR OF SUCCESSFUL EXECUTION 20
Slide 21: Continued revenue and profitability growth
STRATEGIC OUTLOOK UPDATE 2028 CONTINUED REVENUE AND PROFITABILITY GROWTH 23.0% +110 bps EBITDA 20.0% 19.3% EBITDA 18.2% +7.4% 11.8 bn EBITDA 16.4% 11.2 bn 7.1 bn 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 21 Note: Historical Sales represent actual CHF values, growth figures in LC
Slide 22: Target markets – focus on attractive markets
TARGET MARKETS – FOCUS ON ATTRACTIVE MARKETS SOLUTIONS, LIFE-CYCLE MANAGEMENT, ONE STRONG BRAND Concrete Waterproofing Roofing Building Finishing ~ 15% of total sales ~10% of total sales ~15% of total sales ~20% of total sales Flooring & Coating Sealing & Bonding Engineered Refurbishment Industry ~1
Slide 23: Balanced business mix
BALANCED BUSINESS MIX STRONG CROSS-SELLING INTO VERTICAL MARKETS RESIDENTIAL 20% INFRASTRUCTURE 30% COMMERCIAL 35% AUTOMOTIVE & INDUSTRY 15% 23
Slide 24: Sika's exceptional acquisition history
SIKA’S EXCEPTIONAL ACQUISITION HISTORY M&A FUNNEL FROM 2020 TO 2024 # of companies in M&A funnel 16 acquisitions completed of which 15 ~60 bolt-on acquisitions with CHF 50 million sales on average* * excluding large acquisition (MBCC) 24
Slide 25: Successful integration of MBCC
SUCCESSFUL INTEGRATION OF MBCC SYNERGY GUIDANCE FOR 2024 (CHF 80-120 MN) EXCEEDED Additional MBCC in EMEA ~2,500 PEOPLE 38 PLANTS MBCC Synergies (in CHF mn) Additional MBCC in 180 AMERICAS 140 to ~2,000 PEOPLE Additional MBCC in 125 to 200 23 PLANTS 160 ASIA/PACIFIC 41 ~1,600 PEOPLE 2023 2024 Dec 20
Slide 26: Strong business execution
STRONG BUSINESS EXECUTION ® BUILDING TRUST Bs
Slide 27: Global solutions for lasting infrastructure
STRONG BUSINESS EXECUTION GLOBAL SOLUTIONS FOR LASTING INFRASTRUCTURE Gordie Howe International M2 Highway, Thames Tideway Tunnel, Bridge, USA and Canada Montenegro London, UK With length of 2.5 km, longest 16 tunnels and 20 bridges on 95% reduction of sewage cable-stayed bridge in North a 41 km lon
Slide 28: Global data center construction
STRONG BUSINESS EXECUTION GLOBAL DATA CENTER CONSTRUCTION ▪ CHF 700 billion data center investment globally by 2028 ▪ Focus on speed, quality, and carbon footprint ▪ 13,000 tons CO2eq can be saved throughout the lifetime of a typical 25,000 m2 data center thanks to Sika solutions 28
Slide 29: Innovation power
STRONG BUSINESS EXECUTION INNOVATION POWER Sika Fibers Self-healing Membrane Concrete Recycling for Reinforced Concrete for Modern Flat Roofs ▪ Higher durability and ▪ A total of 500 million m3 ▪ Membrane automatically seals longer life cycle of of fresh concrete discarded damages when exposed to co
Slide 30: Innovation power
STRONG BUSINESS EXECUTION INNOVATION POWER Conductive Flooring Systems for Cement-free Tile Adhesives Protection of Sensitive Equipment ▪ Sika conductive flooring systems eliminate ▪ Quick and easy to apply, increased efficiency transfer of electrical charge to sensitive on job site and improved hea
Slide 31: Digital solutions – increasing value of real-time data
STRONG BUSINESS EXECUTION DIGITAL SOLUTIONS – INCREASING VALUE OF REAL-TIME DATA More Transparency ▪ Global digital lab for accelerated R&D activities Higher Efficiency for Customers ▪ Digital solutions for faster analysis and optimized usage Real-time Monitoring and Repairing ▪ Built in sensors for
Slide 32: Financial results
FINANCIAL RESULTS ® BUILDING TRUST Bs
Slide 33: Sales 2024: 7.4% growth in local currencies
SALES 2024 7.4% GROWTH IN LOCAL CURRENCIES in CHF mn 2023 2024 -2.7% Net sales 11,238.6 11,763.1 +6.3% Organic growth +125.5 +1.1% 11,763 Acquisition effect +709.9 11,239 Currency effect -310.9 2023 Org. Acq. FX 2024 33
Slide 34: Sales growth last five years
SALES GROWTH LAST FIVE YEARS STRONG GROWTH IN VARYING ENVIRONMENTS 17.1% 2.0% 15.8% 14.5% 16% 2.7% 11% 15.1% 13.3% 7.4% 6% 13.1% in LC 3.4% 6.3% acquisition 7.2% 1.2% 1.1% 1% organic -3.8% -4% in CHF mn 2020 2021 2022 2023 2024 Sales 7,877.5 9,252.3 10,491.8 11,238.6 11,763.1 34
Slide 35: Income statement
INCOME STATEMENT STRONG GROWTH, OVER-PROPORTIONAL PROFITABILITY DEVELOPMENT in CHF mn 2023 NS 2024 NS Growth Net sales 11,238.6 100% 11,763.1 100% +4.7% Gross result 6,024.8 53.6% 6,416.0 54.5% +6.5% Personnel costs -2,006.8 -17.8% -2,143.6 -18.2% +6.8% Other OPEX -1,973.3 -17.6% -2,002.9 -17.0% +1.
Slide 36: EBITDA improvement 2024
EBITDA IMPROVEMENT 2024 STRATEGIC LEVERS DRIVING IMPROVEMENT 0.7% -0.9% -0.1% 0.3% 1.1% MBCC: Additional Dilution: -0.3% Incremental Synergies: +0.6% 2,170.1 2,287.6 2,269.5 2,044.7 19.3% 19.4% 19.3% 18.2% EBITDA FY 23 M&A cost EBITDA FY 23 Organic Material Non-Mat Cost MBCC Synergies / EBITDA FY 24
Slide 37: Operating free cash flow development
OPERATING FREE CASH FLOW DEVELOPMENT SOLIDLY ABOVE 10% NET SALES TARGET... OFCF % of Net Sales at actual FX 16.0% 12.7% 12.8% 11.9% 9.8% 8.2% 7.2% 2018 2019 2020 2021 2022 2023 2024 OFCF % of Net Sales 37
Slide 38: Net debt/EBITDA development
NET DEBT/EBITDA DEVELOPMENT ...DRIVING FURTHER DELEVERAGING 4.1 3.4 2.5 2.6 2.2 1.9 1.4 1.0 2019 2020 2021 2022 2023 2024 Net Debt/EBITDA 38
Slide 39: Outlook
OUTLOOK ® BUILDING TRUST Bs
Slide 40: Confirmation of 2028 strategic targets
OUTLOOK CONFIRMATION OF 2028 STRATEGIC TARGETS ▪ Sika confirms the outlook, but points to increased market uncertainties arising from potentially prolonged trade conflicts 2025 expected sales growth in LC ▪ For 2025, Sika expects sales growth in local currencies of 3-6% ▪ Over-proportional increase
Slide 41: Thank you for your attention
THANK YOU FOR YOUR ATTENTION BUILDING TRUST