Sika Ag · SIX:SIKA
Sika — Investor Presentation (January 2022)
33 slides from Sika's investor presentation, Jan 11, 2022
Slide 1: Record Year 2021 in Sales – Sika to Acquire MBCC Group
RECORD YEAR 2021 IN SALES WITH GROWTH OF 17.1% IN LC – SIKA TO ACQUIRE MBCC GROUP TO DRIVE GROWTH AND SUSTAINABILITY SIKA INVESTOR PRESENTATION JANUARY 11, 2022
Slide 2: 1. Highlights Sales 2021
1. HIGHLIGHTS SALES 2021 ON TRACK TO MEET AMBITIOUS TARGETS
Slide 3: Sales Growth in Local Currencies of 17.1%
SALES GROWTH IN LOCAL CURRENCIES OF 17.1% HIGHLIGHTS SALES 2021 1. Sales ▪ Sales growth of 17.1% in local currencies. Sales of CHF 9.24 billion (17.3% in CHF) ▪ Organic growth of 15.1% 2. Key investments ▪ Establishment of a new national subsidiary in Ghana ▪ Expansion of production sites in Stockho
Slide 4: Organic Increase of 15.1%
SALES GROWTH IN LOCAL CURRENCIES OF 17.1% ORGANIC INCREASE OF 15.1% 17.1% 19% 16.3% 2.0% 14% 13.0% 9% 3.4% 15.1% 7.2% 4% in LC 3.3% acquisition -1% organic -3.8% -6% 2019 2020 2021 in CHF bn 2019 2020 2021 Net sales 8.11 bn 7.88 bn 9.24 bn 4
Slide 5: Overview Sales Full Year 2021: Market Share Gains in All Regions
OVERVIEW SALES FULL YEAR 2021 MARKET SHARE GAINS IN ALL REGIONS +16.5% +20.1% +20.8% +4.0% Growth in CHF +16.1% +21.0% +19.4% +4.3% Growth in LC +0.4% -0.9% +1.4% -0.3% FX impact +1.3% +3.7% +1.8% +1.1% Acquisition 18% 82% Construction Industry EMEA Americas Asia/Pacific Global Business 5
Slide 6: Sales Growth of 17.1% in Local Currencies for 2021
SALES GROWTH OF 17.1% IN LOCAL CURRENCIES FOR 2021 MARKET SHARE GAINS IN ALL REGIONS + 16.1% + 19.4% + 4.3% + 21.0% 2.08 0.67 2.42 4.07 Asia/Pacific Global Business Americas EMEA 2020 2021 (in CHF billion, growth in LC) 6
Slide 7: Record Sales for 2021: Realized Acquisitions
RECORD SALES FOR 2021 REALIZED ACQUISITIONS Acquisition of Kreps, Russia Acquisition of BR Massa, Brazil Acquisition of DriTac, USA Acquisition of Hamatite, Japan (February 2021) (March 2021) (March 2021) (April 2021) Acquisition of American Acquisition of Bexel, Mexico Acquisition of Landun, China
Slide 8: Record Sales for 2021: Additional Key Investments
RECORD SALES FOR 2021 ADDITIONAL KEY INVESTMENTS Establishment of new national subsidiary Sika Ghana Accra, November 2021 Opening of Sika plants Expansion of production site in Sweden Stockholm, February 2021 Expansion of production site in Qatar Doha, April 2021 Commissioning of new production site
Slide 9: 2. Sika to Acquire MBCC Group to Drive Growth and Sustainability
2. SIKA TO ACQUIRE MBCC GROUP TO DRIVE GROWTH AND SUSTAINABILITY
Slide 10: MBCC Group at a Glance: A Leading Company in Construction Chemicals
MBCC GROUP AT A GLANCE A LEADING COMPANY IN CONSTRUCTION CHEMICALS WORLDWIDE Key Facts Key Figures ▪ MBCC Group is a global manufacturer of construction 7,500 chemicals including concrete admixtures, tile adhesives, CHF 2.9bn Employees flooring systems, waterproofing systems, and PU sealants Sales B
Slide 11: MBCC Group at a Glance: Portfolio of Strong Brands
MBCC GROUP AT A GLANCE PORTFOLIO OF STRONG BRANDS AND PRODUCTS IN KEY COUNTRIES Segments Main Brands Top 10 countries ▪ Tile fixing & floor laying ▪ Performance flooring Construction ▪ Waterproofing USA Germany Systems ▪ Repair & protect ▪ Sealants Japan China 53% ▪ Performance grouts ▪ Specialities
Slide 12: 3. Acquisition Is Highly Complementary
3. ACQUISITION IS HIGHLY COMPLEMENTARY
Slide 13: Strengthening Footprint Across All Regions
STRENGTHENING FOOTPRINT ACROSS ALL REGIONS SIKA TO REACH SALES IN EXCESS OF CHF 13 BN IN 2023 Americas APAC 2,000 people 2,100 people 36 Plants 52 Plants 16 11.8 2 3.2 9.0 2.3 2.0 2.5 Americas Asia/Pacific Sika sales Total Sales** 5.4 4.0 Sika and MBCC Group sales* EMEA 3,400 people 42 Plants (**) I
Slide 14: MBCC Group Aligns Well with Sika's Core Technologies
MBCC GROUP ALIGNS WELL WITH SIKA’S 5 CORE TECHNOLOGIES ACQUISITION ADDS TO TECHNOLOGY MIX Concrete Systems Cementitious Systems Thermoplastics Systems Coating Systems Adhesive Systems 9% 22% 27% 14% 15% 21% 26% + 2% 42% = 13% 28% 12% 32% 16% 21% Pro-forma 14
Slide 15: Seven of Eight Target Markets Will Profit from Acquisition
SEVEN OF EIGHT TARGET MARKETS WILL PROFIT FROM ACQUISITION ALL TARGET MARKETS ACHIEVING SALES BETWEEN CHF 1-2 BILLION Concrete Waterproofing Roofing Flooring Extension of product portfolio Increased access to tunneling Addition of bituminous Addition of strong Ucrete brand with tunneling products an
Slide 16: Sika and MBCC Group Complementarity in Many Ways
SIKA AND MBCC GROUP COMPLEMENTARITY IN MANY WAYS Complementarity in many countries, regions, and product ranges. Combination will lead to a very balanced offering. Customers will benefit from a stronger solution portfolio and an enhanced and more efficient distribution network across all constructio
Slide 17: Combined Product Range Covers Wider Set of Project Needs
SIKA AND MBCC GROUP ARE HIGHLY COMPLEMENTARY COMBINED PRODUCT RANGE COVERS WIDER SET OF PROJECT NEEDS Sika Sikaplan SikaPower Sikafloor admixtures and solutions for PVC membrane for waterproofing epoxy-based toughened adhesive self-leveling screeds for both new concrete incl. Sika ViscoCrete, and ot
Slide 18: Example Distribution Strengths in DACH Region
SIKA AND MBCC GROUP ARE HIGHLY COMPLEMENTARY EXAMPLE DISTRIBUTION STRENGTHS IN DACH REGION PCI as accelerator for Sika’s DACH distribution business MBCC Group ▪ Sika sells primarily through specialty distributors strength in ▪ PCI with strong position in Builders’ Merchants and distribution business
Slide 19: Strengthened Product Range in Many Countries
SIKA AND MBCC GROUP ARE HIGHLY COMPLEMENTARY STRENGTHENED PRODUCT RANGE IN MANY COUNTRIES 1 Example: Japan 2 Example: Mexico Strong in Sealing & Bonding and Strong in Concrete, Roofing, Eng. Roofing Refurbishment and Building Finishing Strong in Concrete and Strong in Eng. Refurbishment Waterproofin
Slide 20: Increased Customer Proximity – Production of Wind Grouts
SIKA AND MBCC GROUP ARE HIGHLY COMPLEMENTARY INCREASED CUSTOMER PROXIMITY – PRODUCTION OF WIND GROUTS 1 Supply Chain Joint Solutions 2 Supply Chain Wind Grouts MBCC Group produces offshore wind MBCC Group expansion Sika expansion joint grouts in Belgium, Sika has no internal joint plant (WBA) plant
Slide 21: 4. Working Together for a Sustainable Future
4. WORKING TOGETHER FOR A SUSTAINABLE FUTURE
Slide 22: Sustainability Regulations to Boost Sika's Growth Model
SUSTAINABILITY REGULATIONS TO BOOST SIKA’S GROWTH MODEL STRONG LONG-TERM MARKET POTENTIAL FOR SIKA SIKA HAS SOLUTIONS FOR ALL MARKETS Long-term market potential Sika Sustainability regulations Repair and Sika’s market potential refurbishment Higher building standards Infrastructure Emerging markets
Slide 23: Sika Reinforces Position as Sustainability Champion
SIKA REINFORCES POSITION AS SUSTAINABILITY CHAMPION “WORKING TOGETHER FOR A SUSTAINABLE FUTURE” Our flooring systems drive cost efficiency, enabling up to 7% lower lifecycle cost SikaCeram MasterTop & increased service lifeof up to 50 years Sika has improved formulations of tile adhesives allowing f
Slide 24: Sika Reinforces Position as Sustainability Champion: Goals
SIKA REINFORCES POSITION AS SUSTAINABILITY CHAMPION “WORKING TOGETHER FOR A SUSTAINABLE FUTURE” OUR GOAL SIKA 80% of sales will be generated by products that have a 70% of sales is generated by products that have a positive effect on sustainability MBCC GROUP positive effect on sustainability Sustai
Slide 25: 5. Value Creation and Financial Considerations
5. VALUE CREATION AND FINANCIAL CONSIDERATIONS
Slide 26: Financial Considerations
FINANCIAL CONSIDERATIONS ▪ Financial parameters ▪ Enterprise value of CHF 5.5 billion (EUR 5.2 billion ) ▪ Annual synergies of CHF 160 – 180 million ▪ 11.5x EV / 2022E pro-forma EBITDA; 8.5x EV / EBITDA incl. full run-rate synergies ▪ EPS accretive as of first full financial year post closing ▪ Fina
Slide 27: Financial Benefits from Transaction
FINANCIAL BENEFITS FROM TRANSACTION SYNERGIES TO DRIVE SUSTAINABLE MARGIN ENHANCEMENT EBITDA margin c. 19% c. 15% c. 20% +35% EBITDA (CHF mn) 160-180 2,350 – 2,370 440 1,750 2 Eleven 1 Run-rate synergies Pro-forma 1) Pro-forma Sept 21 run-rate 2) Full run-rate synergies (EBITDA contribution) once fu
Slide 28: Revenue and Cost Synergies
REVENUE AND COST SYNERGIES EXPECTED RUN-RATE SYNERGIES OF CHF 160-180 MN BY 2025 ▪ Additional revenue synergies expected to be realized ▪ Expected run-rate Revenue through customer proximity and enhanced supply chain synergies of CHF Synergies to 160-180 mn p.a. ▪ Strong cross-selling opportunities
Slide 29: Summary: Acquisition Accelerates Sika's Growth Strategy
SUMMARY ACQUISITION ACCELERATES SIKA’S GROWTH STRATEGY ▪ The combined company will drive the sustainability transformation of the construction industry further and faster. It will focus on new product improvements and will be a key enabler for sustainable solutions. ▪ Transaction is highly complemen
Slide 30: 6. Outlook
6. OUTLOOK ® BUILDING TRUST By
Slide 31: Outlook: Continuation of Successful Growth Strategy
OUTLOOK CONTINUATION OF SUCCESSFUL GROWTH STRATEGY ▪ Confirmation of 2023 strategic targets for sustainable, profitable growth ▪ For 2021, Sika is anticipating an over-proportional increase in EBIT and an EBIT margin of 15% 31
Slide 32: Thank You for Your Attention
3 THANK YOU FOR YOUR ATTENTION BUILDING TRUST aa
Slide 33: 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