Slide 1: Accelerated 4th Quarter Sales Growth of 8.3%, Strategic Targets Raised
ACCELERATED 4TH QUARTER SALES GROWTH OF 8.3% STRATEGIC TARGETS RAISED SIKA INVESTOR PRESENTATION, SALES 2015 JANUARY 12, 2016
Slide 2: 1. High Operating Speed in 2015
1. HIGH OPERATING SPEED IN 2015
Slide 3: High Operating Speed in 2015
HIGH OPERATING SPEED IN 2015 ACCELERATED 4TH QUARTER SALES GROWTH OF 8.3% 6.2% local currency sales growth in 2015 (Real CHF growth of -1.5% due to significant appreciation of CHF) With negative growth of China excluded, sales up by 7.4% Growth in all regions: Double-digit in core markets, USA
Slide 4: Growth Momentum in 2015
GROWTH MOMENTUM IN 2015 6.2% SALES GROWTH (-1.5% IN CHF) + 5.6% + 8.4% 0.84 + 2.1% North America 1.02 + 9.5% 2.60 Asia/Pacific 0.60 EMEA Latin America 12M / 2014 12M / 2015 (in CHF million, growth at constant exchange rates) 4
Slide 5: Sales Growth by Quarter
SALES GROWTH BY QUARTER CONTINUED GROWTH MOMENTUM 23.3% 9.2% 14.0% 11.7% at constant FX acquisition 7.4% 8.3% 5.4% organic 5.3% 5.1% 6.0% 2.5% 5.3% 1.4% 1.1% 2.6% 2.2% 14.1% 6.6% 6.3% 5.8% 3.9% 4.0% 3.4% 3.1% in CHF mn Q1 PY Q2 PY Q3 PY Q4 PY Q1 CY Q2 CY Q3 CY Q4 CY Sales by 1,206.0 1,450.7 1,517.5
Slide 6: Sales Twelve Months 2015: Growth in All Regions
SALES TWELVE MONTHS 2015 GROWTH IN ALL REGIONS + 5.6 % + 8.4 % + 2.1 % + 9.5 % Growth (at constant FX) - 10.5 % + 4.0 % - 4.3 % - 15.5 % FX impact + 3.1 % + 0.8 % + 1.9 % + 1.3 % Acquisition 21% 79% Construction Industry EMEA North Asia/Pacific Latin America America 6
Slide 7: Investments in 2015: New Plants
CONTINUING HIGH OPERATING SPEED INVESTMENTS IN 2015 Opening of Sika plants: 2nd plant in United Arab Emirates (Dubai, March 2015) 1st plant on Reunion Island (March 2015) 1st plant in Sri Lanka (Ekala, March 2015) 1st plant in Paraguay (Asunción, May 2015) 4th plant in Russia (Volgograd, A
Slide 8: New National Subsidiaries in 2015
CONTINUING HIGH OPERATING SPEED NEW NATIONAL SUBSIDIARIES IN 2015 New subsidiaries: Myanmar (March 2015) Tanzania (September 2015) Ethiopia (September 2015) Sika Myanmar Sales Team, Sika Myanmar 8
Slide 9: Acquisitions in 2015
CONTINUING HIGH OPERATING SPEED ACQUISITIONS IN 2015 Company Country Target Market Duro-Moza Mozambique Refurbishment BMI USA Refurbishment, Flooring Axson Technologies Global Industry CTA Australia Refurbishment Addiment Italia Europe Concrete Total annual sales: CHF 115 million Axson Technologies
Slide 10: 2. Strategy 2018 Update: Review & Raised Targets
2. STRATEGY 2018 UPDATE: REVIEW & RAISED TARGETS
Slide 11: Key Achievements Since 2012
KEY ACHIEVEMENTS SINCE 2012 WELL AHEAD OF STRATEGY 2018 TARGETS Sales growth well within target, all pillars of GROWTH MODEL contributing (Average annual sales growth of 9% in local currency) Significant margin improvements (Gross Result, EBIT, Net Profit) and Cash Flow generation exceeding Stra
Slide 12: Five-Year Overview: Performance Ahead of Targets
FIVE-YEAR OVERVIEW PERFORMANCE AHEAD OF TARGETS 30. 0% NET SALES 700 EBIT 11.4% 12. 0% 20. 0% 6'200 +13.0% 650 10.2% +21.0% +9.4% +6.2% In % of sales 10. 0% +5.3% 10. 0% 600 9.0% Growth in LC +8.3% 5'700 0.0 % 7.6% 8.0 % -1.5% +21.0% 550 -10.0% 500 +6.5% 6.0 % 5'200 Growth in CHF +25.0% -20.0% 450 +
Slide 13: Strategy 2018 Update: Performance Ahead of Targets
STRATEGY 2018 UPDATE PERFORMANCE AHEAD OF TARGETS TARGETS 2012 2013 2014 2015 6 – 8% sales growth +5.3% +9.4% +13.0% +6.2% > 10% Operating Profit 9.0% 10.2% 11.4% > 6% Operating Free 6.3% 8.4% 7.5% Cash Flow > 20% Return on 18.5% 21.0% 23.3% Capital Employed 13
Slide 14: Strategy 2018: Sika's Growth Model Delivers Since 2012
STRATEGY 2018: SIKA’S GROWTH MODEL DELIVERS SINCE 2012 MARKET PENETRATION INNOVATION EMERGING MARKETS ACQUISITIONS VALUES 14 |
Slide 15: Active in Attractive Markets with Core Competencies
SIKA IS ACTIVE IN ATTRACTIVE MARKETS WITH CORE COMPETENCIES IN BONDING, SEALING, DAMPING, REINFORCING AND PROTECTING Concrete Waterproofing Roofing Flooring & Coating Sealing & Bonding Refurbishment Industry 15
Slide 16: 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 17: Strategy 2018: Sika's Growth Model Delivers Since 2012
STRATEGY 2018: SIKA’S GROWTH MODEL DELIVERS SINCE 2012 MARKET PENETRATION INNOVATION EMERGING MARKETS ACQUISITIONS VALUES 17 |
Slide 18: We Are Innovation: Strong Track Record
WE ARE INNOVATION STRONG TRACK RECORD 297 880 317 20 Patents were Employees are Invention Technology filed since dedicated to disclosures Centers 2012 Research and since 2012 world-wide Development 18
Slide 19: Strategy 2018: Sika's Growth Model Delivers Since 2012
STRATEGY 2018: SIKA’S GROWTH MODEL DELIVERS SINCE 2012 MARKET PENETRATION INNOVATION EMERGING MARKETS ACQUISITIONS VALUES 19 |
Slide 20: Emerging Markets Build-up Since 2012
EMERGING MARKETS BUILD-UP SINCE 2012 GROWTH POTENTIAL IN NEW MARKETS 30 12.5% 16 37% New Average sales New of turnover plants growth countries in Emerging opened Markets 20
Slide 21: Strategy 2018: Sika's Growth Model Delivers Since 2012
STRATEGY 2018: SIKA’S GROWTH MODEL DELIVERS SINCE 2012 MARKET PENETRATION INNOVATION EMERGING MARKETS ACQUISITIONS VALUES 21 |
Slide 22: Acquisitions Since 2012
ACQUISITIONS SINCE 2012 GROWTH PLATFORMS FOR THE FUTURE In all In all 17 563 7 4 Acquisitions million CHF Target Regions turnover Markets 22
Slide 23: Strategy 2018: Sika's Growth Model Delivers Since 2012
STRATEGY 2018: SIKA’S GROWTH MODEL DELIVERS SINCE 2012 MARKET PENETRATION INNOVATION EMERGING MARKETS ACQUISITIONS VALUES 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: 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 • 297 new patents filed INNOVATION • 20 Global Technology Centers • 30 new plants opened EMERGING M
Slide 26: Strategy 2018 – Strategy Review Process
STRATEGY 2018 – STRATEGY REVIEW PROCESS BOTTOM-UP REVIEW With 3 full business years until 2018 and considering the strong performance ahead of targets, a comprehensive review of the strategy was performed: • A bottom-up review of STRATEGY 2018 with all 160 Senior Managers and in all countries was ca
Slide 27: Strategy 2018: New and Raised Targets
STRATEGY 2018 NEW AND RAISED TARGETS PREVIOUS TARGETS NEW TARGETS 6 - 8% GROWTH PER YEAR 6 - 8% GROWTH PER YEAR 6 - 8 NEW PLANTS PER YEAR 42% - 45% OF SALES IN EMERGING MARKETS 100 NATIONAL SUBSIDIARIES BY 2018 > 10% OPERATING PROFIT 12 - 14% OPERATING > 6% OPERATING FREE PROFIT PER YEAR CASH FLOW >
Slide 28: Sika's Growth Model with New and Raised Targets
STRATEGY 2018 SIKA’S GROWTH MODEL WITH NEW AND RAISED TARGETS 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
Slide 29: Strategy 2018 – Ensuring Sika's Success Story
STRATEGY 2018 – ENSURING SIKA’S SUCCESS STORY The strong performance once again underscores the necessity of safeguarding Sika’s successful business model in the interest of all stakeholders. Sika’s public shareholders, Board of Directors, Group Management, 160 senior managers and employee represent
Slide 30: 3. Saint-Gobain's Hostile Takeover Attempt
3. 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: Restriction of Transferability, the 5% Threshold
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: 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 34: Thank You for Your Attention
THANK YOU FOR YOUR ATTENTION ® BUILDING TRUST Bs