Sika Ag · SIX:SIKA
Sika — Investor Day (October 2023)
23 slides from Sika's investor day presentation, Oct 3, 2023
Slide 1: Strategy 2028 – Beyond the Expected
STRATEGY 2028 – BEYOND THE EXPECTED BAAR, OCTOBER 3, 2023
Slide 2: What We Build Upon – What Will Change
STRATEGY 2028 WHAT WE BUILD UPON – WHAT WILL CHANGE What we build upon What will change/be reinforced ▪ People & Culture as strong backbone ▪ Build on 4 strong strategic pillars ▪ Decentralized market facing decisions, ▪ Balanced set of Financial & non-Financial targets agile organization ▪ Switch t
Slide 3: Sika Automotive & Industry Organization 2024 – Coming Together
SIKA AUTOMOTIVE & INDUSTRY ORGANIZATION 2024 COMING TOGETHER Automotive Industry Automotive + Industry Automotive and Industry have been combined on a regional level to gain maximum momentum in a dynamic environment, increasingly driven by solutions for e-mobility and renewables. 3
Slide 4: Profitable Growth to Continue
STRATEGY 2028 – BEYOND THE EXPECTED PROFITABLE GROWTH TO CONTINUE 23.0% 20.0% EBITDA 18.7% EBITDA 16.4% 10.5 bn 7.1 bn 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 4 Note: Historical Sales represent actual CHF values, growth figures in LC
Slide 5: Megatrends Driving Sustainable Growth
MEGATRENDS DRIVING SUSTAINABLE GROWTH FURTHER ACCELERATION POPULATION GROWTH URBANIZATION DEMOGRAPHIC RESOURCE SCARCITY CHANGE CLIMATE CHANGE & INCREASING TECHNOLOGICAL DIGITALIZATION SUSTAINABILITY REGULATIONS PROGRESS 5
Slide 6: Construction Chemicals Outgrow Construction Market
CONSTRUCTION CHEMICALS OUTGROW CONSTRUCTION MARKET MEGATRENDS ACCELERATE DEMAND AND DRIVE PENETRATION Construction chemicals penetration (1991 = 100) 600 500 400 300 200 100 2x penetration 2.5 – 4.0x penetration increase increase 0 1990 2000 2010 2020 2030 2040 2050 Source: IHS, Freedonia | 1) penet
Slide 7: Market Share in Construction Chemicals and Industry
MARKET SHARE IN CONSTRUCTION CHEMICALS AND INDUSTRY TOTAL ADDRESSABLE MARKET 2023: CHF 110 BILLION 11% 45% Top 30 competitors Competitive landscape (incl. Sika) account for remains very fragmented 55% of market share despite ongoing M&A activity 7
Slide 8: Four Pillars of Growth Strategy 2028
FOUR PILLARS OF GROWTH STRATEGY 2028
Slide 9: Sika's Growth Strategy 2028 – The Pillars of the Strategy
SIKA’S GROWTH STRATEGY 2028 THE PILLARS OF THE STRATEGY 6-9% 20% annual growth in LC GHG emission reduction MARKET PENETRATION Scope 1 & 2 (absolute reduction vs. 2022 base line) INNOVATION & 20-23% EBITDA* Scope 3 reduction in line with net-zero pledge SUSTAINABILITY >80% ACQUISITIONS >10% Operatin
Slide 10: Strong Execution and Benefits of Megatrends
STRONG EXECUTION AND BENEFITS OF MEGATRENDS SIKA STRONGLY POSITIONED IN 2023 AND BEYOND URBANIZATION CLIMATE CHANGE AND SUSTAINABILITY Our growth ambition 6-9 % DIGITALIZATION INCREASING REGULATIONS Sika’s average annual growth rate DEMOGRAPHIC CHANGE in local currencies TECHNOLOGICAL PROGRESS RESOU
Slide 11: Market Penetration and Its Levers
MARKET PENETRATION AND ITS LEVERS THE ART OF INCREASING MARKET SHARE Leveraging Cross- Multi-channel Go where Key High potential strong position selling approach the money is geographies markets 11
Slide 12: Innovation & Sustainability
INNOVATION & SUSTAINABILITY
Slide 13: Innovation & Sustainability – Transforming Innovation and Effective Sustainability
INNOVATION & SUSTAINABILITY – TRANSFORMING INNOVATION AND EFFECTIVE SUSTAINABILITY PRESERVE NATURAL CLIMATE CHANGE INNOVATION RESOURCES MITIGATION Increase water and waste Reduction direct and All new product developments efficiency. indirect emissions. to be SPM validated. Reduce usage of hazardous
Slide 14: Sika's Net Zero Pathway – Driving the Transformation
INNOVATION & SUSTAINABILITY – STRATEGIC PILLARS 2028 SIKA’S NET ZERO PATHWAY – DRIVING THE TRANSFORMATION OUR KEY LEVERS Education and capacity building to improve material efficiency and circularity Accelerated use of Continued focus alternative low on operational carbon supplies efficiencies Partn
Slide 15: Sustainability Portfolio Management (SPM)
INNOVATION & SUSTAINABILITY – ENABLING SUSTAINABLE SOLUTIONS SUSTAINABILITY PORTFOLIO MANAGEMENT (SPM) ▪ The SPM evaluates solutions based on All new product 12 sustainability and 6 performance developments to be categories. SPM validated with a ▪ SPM is used to classify, and market positive validat
Slide 16: Innovation & Sustainability – Roadmap
INNOVATION & SUSTAINABILITY – ROADMAP MERGE DURABILITY, DECARBONIZATION, AND CIRCULARITY TRANSFORMING CREATING NEW INNOVATIVE MARKET STRATEGY PROACTIVE VALUE LOCAL PROPOSITION QUICK AND IMPACTFUL DEFENSIVE COMPLIANCE DRIVEN CIRCULAR ECONOMY CONCEPTS REDUCE CO2 DEVELOP REPLACE HAZARDOUS SUSTAINABILIT
Slide 17: Acquisitions
ACQUISITIONS ® BUILDING TRUST Bs
Slide 18: Acquisitions – Strategic Lever with Multiple Dimensions
ACQUISITIONS STRATEGIC LEVER WITH MULTIPLE DIMENSIONS Expansion Bolt-ons 18
Slide 19: Acquisitions from 2018 to 2022 – Additional Growth Platforms
ACQUISITIONS – FROM 2018 TO 2022 ADDITIONAL GROWTH PLATFORMS IN ALL TARGET MARKETS 2018 2019 2020 2021 2022 2023 in CHF mn 4 5 2 7 2 2 L L Concrete Waterproofing S&B Refurbishment Roofing Flooring Building Finishing Industry 19
Slide 20: People & Culture
PEOPLE & CULTURE ® BUILDING TRUST Bs
Slide 21: Investing in Our People & Culture Is Investing in Our Future Success
WE BUILD TRUST EVERYDAY INVESTING IN OUR PEOPLE OUR EMPLOYEES FEEL VALUED, EMPOWERED AND PROUD TO WORK FOR SIKA & CULTURE IS INVESTING SAFE ENGAGED INCLUSIVE IN OUR FUTURE SUCCESS. Be effective leaders that build a safe, attractive and inclusive LEADERS ARE IN CHARGE. environment where people feel i
Slide 22: People and Leadership Development
PEOPLE & CULTURE – PEOPLE AND LEADERSHIP DEVELOPMENT CAPABILITY BUILDING POWERS TRANSFORMATION Focus Areas Leadership Sika Business People Business People Development L&D MEGATRENDS Strategy & Talent Strategy Strategy Strategy 2028 Functional Technical Building capabilities for future 22
Slide 23: People & Culture – Community Engagement
PEOPLE & CULTURE – COMMUNITY ENGAGEMENT OUR EMPLOYEES AROUND THE WORLD AT SIKA DAY Sika Mexico Sika Germany Sika Mongolia 23