Sika Ag · SIX:SIKA

Sika — Investor Presentation (January 2025)

31 slides from Sika's investor presentation, Jan 9, 2025

  1. Slide 1: Sika with record sales of CHF 11.76 billion in 2024

    SIKA WITH RECORD SALES OF CHF 11.76 BILLION IN 2024 SIKA INVESTOR PRESENTATION BAAR, JANUARY 9, 2025

  2. Slide 2: Agenda

    1. SIKA WITH RECORD SALES IN 2024 2. LOOK BACK AT OUR FIRST YEAR OF STRATEGY 2028 3. UNLOCK GROWTH WITH DURABILITY AND CIRCULARITY 4. OUTLOOK

  3. Slide 3: 1. Sika with record sales in 2024

    1. SIKA WITH RECORD SALES IN 2024

  4. Slide 4: Growth in local currencies of 7.4%

    SIKA WITH RECORD SALES IN 2024 GROWTH IN LOCAL CURRENCIES OF 7.4% 1. Sales  Sika posts record sales of CHF 11.76 billion in 2024  Revenue growth of +4.7% in CHF (+7.4% in local currencies)  Negative foreign currency effect of -2.7% 2. Key investments for future growth  Strong acquisition momentu

  5. Slide 5: Growth in all regions

    SIKA WITH RECORD SALES IN 2024 GROWTH IN ALL REGIONS +11.2 % +7.3 % +2.4 % +7.4 % 4.10 5.09 2.57 11.76 AMERICAS EMEA APAC GROUP 2023 2024 (in CHF billion, growth in LC) 5

  6. Slide 6: Sales growth of 7.4% in local currencies

    SIKA WITH RECORD SALES IN 2024 SALES GROWTH OF 7.4% IN LOCAL CURRENCIES +4.4% +9.7% -2.0% Growth in CHF +7.3% +11.2% +2.4% Growth in LC - 2.9% - 1.5% - 4.4% FX impact +6.2% +8.3% +3.8% Acquisition 14% 86% Construction Automotive & Industry EMEA Americas Asia/Pacific 6 6

  7. Slide 7: Increasing organic growth throughout the year

    SIKA WITH RECORD SALES IN 2024 INCREASING ORGANIC GROWTH THROUGHOUT THE YEAR 15.8% 19% 2.7% 14.5% 14% 12.8% 9% 13.3% 7.4% 13.1% 12.3% 4% 2.6% 6.3% in LC 0.9% acquisition 1.2% 0.5% 1.7% 1.1% organic -1% -6% 2022 2023 H1 2024 H2 2024 2024 in CHF bn FY 2022 FY 2023 H1 2024 H2 2024 FY 2024 Net sales 10.

  8. Slide 8: Gaining market share over the years, outgrowing the peers

    SIKA GAINING MARKET SHARE OVER THE YEARS OUTGROWING THE PEERS 21% 21% 17.1% 15.8% 16% 2.0% 16% 14.5% 2.7% 11% 11% 9.1% 15.1% 13.3% in LC 6% 6% 12.7% 13.1% 13.2% 8.1% acquisition organic 1% 1% 1.2% 1.0% -1.0% peer growth (organic) -3.5% -4% -4% in CHF bn FY2021 2021 FY 2022 2022 FY 2023 2023 9M 2024

  9. Slide 9: Successful integration of MBCC: acceleration of synergy impact

    SUCCESSFUL INTEGRATION OF MBCC ACCELERATION OF SYNERGY IMPACT – 2024 GUIDANCE RAISED 180 to 200 140 to 160 100 to 120 41 2023 2024 2025 2026 (in CHF million) 9

  10. Slide 10: Continuous investments in future growth

    CONTINUOUS INVESTMENTS IN FUTURE GROWTH KEY INVESTMENTS IN 2024 Acquisition Kwik Acquisition Vinaldom, Acquisition (closing) New facility in Lima, Peru Bond Polymers, US Dominican Republic Chema, Peru Production of synthetic macro fibers to strengthen Sika’s position as a leading supplier to the min

  11. Slide 11: High engagement score of 86

    HIGHLIGHTS IN 2024 HIGH ENGAGEMENT SCORE OF 86 HIGH ENGAGEMENT SCORE OF 86 86 Fueled by strong purpose and confidence in ENGAGEMENT SCORE management and strategy 11

  12. Slide 12: 2. Look back at our first year of Strategy 2028

    2. LOOK BACK AT OUR FIRST YEAR OF STRATEGY 2028

  13. Slide 13: Strategy 2028 – beyond the expected

    STRATEGY 2028 – BEYOND THE EXPECTED PROFITABLE GROWTH TO CONTINUE 23.0% 20.0% EBITDA 18.2% EBITDA 16.4% 11.2 bn On track for 7.1 bn continued growth and value 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 creation 13 Note: Historical Sales represent actual CHF values, growth figures in LC

  14. Slide 14: 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

  15. Slide 15: Market share in construction chemicals and industry

    MARKET SHARE IN CONSTRUCTION CHEMICALS AND INDUSTRY TOTAL ADDRESSABLE MARKET 2023: CHF 110 BILLION 11% Top 30 Competitive competitors landscape 45% (incl. Sika) remains very account for fragmented despite ongoing 55% M&A activity of market share 15

  16. Slide 16: Market penetration: eight target markets

    MARKET PENETRATION STRATEGY 2028 – EIGHT TARGET MARKETS WITH LEADING POSITION IN ALL EIGHT TARGET MARKETS Concrete Waterproofing Roofing Building Finishing Flooring & Coating Sealing & Bonding Engineered Refurbishment Industry 16

  17. Slide 17: Market penetration: balanced business mix

    MARKET PENETRATION STRATEGY 2028 – BALANCED BUSINESS MIX GLOBAL FOOTPRINT IN VERTICAL MARKETS 20% 30% RESIDENTIAL INFRASTRUCTURE 35% 15% COMMERCIAL AUTOMOTIVE & INDUSTRY 17

  18. Slide 18: Market penetration: key growth levers/initiatives

    MARKET PENETRATION STRATEGY 2028 KEY GROWTH LEVERS/INITIATIVES KEY GEOGRAPHIES LEVERAGING STRONG POSITION MULTI-CHANNEL APPROACH Fostering our worldclass brand and leveraging our Following a multi-channel approach with dedicated strong reputation and specialized teams EU ROP E U JAP S AN A CH IN A D

  19. Slide 19: Acquisitions as growth accelerator

    ACQUISITIONS AS GROWTH ACCELERATOR ACQUISITIONS 2019 – 2024 2019 2020 2021 2022 2023 2024 5 2 7 2 2 3 L L Concrete Waterproofing S&B Refurbishment Roofing Flooring Building Finishing Industry L Large transaction 19

  20. Slide 20: 3. Unlock growth with durability and circularity

    3. UNLOCK GROWTH WITH DURABILITY AND CIRCULARITY

  21. Slide 21: Durability and its impact on emissions

    DURABILITY AND ITS IMPACT ON EMISSIONS CO2 REDUCTION BY PROLONGING LIFESPAN According to different scenarios where the average lifespan of a residential/commercial building 30% is 40 or 60 years, the cumulative less CO2 with 20 kgCO2eq/m2 decreases by 30% years longer lifespan once the lifespan of a

  22. Slide 22: Driving the transformation of the construction sector

    DRIVING THE TRANSFORMATION OF THE CONSTRUCTION SECTOR LONG DURABILITY BY EXTENDING THE LIFESPAN Linear construction Circular construction TIME MAKE USE Fit for purpose High quality CO2 optimized Digital Sustain Repurpose Not durable and durable raw materials monitoring and repair or recycle Not recy

  23. Slide 23: Durability requirements in infrastructure

    DURABILITY REQUIREMENTS IN INFRASTRUCTURE TODAY'S PROJECTS ARE DESIGNED FOR 100+ YEARS Gordie Howe Bridge, USA London Thames Tideway, UK Dubai’s Deep Tunnel, SA Brenner Tunnel, AT-IT Forrestfield-Airport Link, AU NS Highway, Vietnam 23

  24. Slide 24: Increased concrete performance with reinforcing fibers

    INCREASED CONCRETE PERFORMANCE WITH REINFORCING FIBERS DURABILITY AND SUSTAINABILITY FROM TO CONVENTIONAL REBARS-REINFORCED CONCRETE FIBER-REINFORCED CONCRETE  300 million tons of reinforcement steel per year  50 million tons of steel can be replaced by fibers  500 million tons of CO2eq for steel

  25. Slide 25: Innovation – high opportunity in returned concrete

    INNOVATION – HIGH OPPORTUNITY IN RETURNED CONCRETE CIRCULARITY AND SUSTAINABILITY CHALLENGES  Globally, 4% of the fresh concrete is returned = 1,100 million tons!  Heavy work needed to dispose SOLUTIONS  Sika® Stabilizer-180 RCA  Sika® Stabilizer-323 RCT APPLICATION  Soluble bags are added to t

  26. Slide 26: Innovation – digital solutions support longer lifespan

    INNOVATION – DIGITAL SOLUTIONS SUPPORT LONGER LIFESPAN ANTICIPATING CUSTOMER NEEDS ALONG THE VALUE CHAIN Digital Products Digital Monitoring & Repairing Digital Tools Built in sensors for lifelong performance tracking To observe an early deterioration To make processes more efficient 26

  27. Slide 27: Data centers, semiconductor plants with longer lifespan

    DATA CENTERS, SEMICONDUCTOR PLANTS WITH LONGER LIFESPAN MANY DATA CENTERS TO BE BUILT IN THE COMING YEARS Sika solutions can contribute to savings of 13,000 tons CO2eq throughout the lifetime of a 25,000m2 data center 27

  28. Slide 28: 4. Outlook

    4. OUTLOOK ® BUILDING TRUST By

  29. Slide 29: Outlook for fiscal 2024

    OUTLOOK FOR FISCAL 2024 CONFIRMATION OF OVER-PROPORTIONAL INCREASE IN EBITDA  Over-proportional increase in EBITDA  Confirmation of 2028 strategic targets for sustainable, profitable growth 29

  30. Slide 30: Thank you for your attention

    THANK YOU FOR YOUR ATTENTION Bs BUILDING TRUST

  31. Slide 31: 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

Sika — Investor Presentation (January 2025) on 6ix