Slide 1: Sika with Record Results – Stronger Than Ever
SIKA WITH RECORD RESULTS – STRONGER THAN EVER SIKA MEDIA AND INVESTOR PRESENTATION ZURICH, FEBRUARY 21, 2025
Slide 2: Agenda
1. HIGHLIGHTS 2024, THOMAS HASLER (CEO) 2. SUCCESSFUL FIRST YEAR OF STRATEGY 2028, THOMAS HASLER (CEO) 3. STRONG BUSINESS EXECUTION, THOMAS HASLER (CEO) 4. FINANCIAL RESULTS, ADRIAN WIDMER (CFO) 5. OUTLOOK, THOMAS HASLER (CEO), CHRISTOPH GANZ (EMEA), MIKE CAMPION (AMERICAS), PHILIPPE JOST (ASIA/PACI
Slide 3: Agenda
1. HIGHLIGHTS 2024, THOMAS HASLER (CEO) 2. SUCCESSFUL FIRST YEAR OF STRATEGY 2028 , THOMAS HASLER (CEO) 3. STRONG BUSINESS EXECUTION, THOMAS HASLER (CEO) 4. FINANCIAL RESULTS, ADRIAN WIDMER (CFO) 5. OUTLOOK, THOMAS HASLER (CEO), CHRISTOPH GANZ (EMEA), MIKE CAMPION (AMERICAS), PHILIPPE JOST (ASIA/PAC
Slide 4: Highlights 2024: Sika is a Growth Compounder
HIGHLIGHTS 2024 SIKA IS A GROWTH COMPOUNDER 4
Slide 5: Strong Profit Generation Over the Years
HIGHLIGHTS 2024 WITH STRONG PROFIT GENERATION OVER THE YEARS 5
Slide 6: Jump in Net Profit of 17.4%
HIGHLIGHTS 2024 JUMP IN NET PROFIT OF 17.4% 6
Slide 7: 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 7
Slide 8: 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 8
Slide 9: 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) 9
Slide 10: Gaining Market Share Over the Years
SIKA GAINING MARKET SHARE OVER THE YEARS OUTGROWING ITS PEERS 21% 17.1% 15.8% 16% 2.0% 14.5% 2.7% 11% in LC 7.4% 15.1% 13.3% acquisition 6% 12.7% 13.1% 13.2% organic 6.3% peer growth (organic) 1% 1.2% 1.1% -1.0% * -3.5% -4% in CHF bn FY 2021 FY 2022 FY 2023 FY 2024 2021 2022 2023 2024 Net sales 9.25
Slide 11: 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. 11
Slide 12: 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 12
Slide 13: Key Non-Financial Metrics
HIGHLIGHTS 2024 KEY NON-FINANCIAL METRICS 13
Slide 14: Highlights 2024 at a Glance
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 15: Agenda
1. HIGHLIGHTS 2024, THOMAS HASLER (CEO) 2. SUCCESSFUL FIRST YEAR OF STRATEGY 2028, THOMAS HASLER (CEO) 3. STRONG BUSINESS EXECUTION, THOMAS HASLER (CEO) 4. FINANCIAL RESULTS, ADRIAN WIDMER (CFO) 5. OUTLOOK, THOMAS HASLER (CEO), CHRISTOPH GANZ (EMEA), MIKE CAMPION (AMERICAS), PHILIPPE JOST (ASIA/PACI
Slide 16: Strategy 2028: First Year of Successful Execution
STRATEGY 2028 FIRST YEAR OF SUCCESSFUL EXECUTION 16
Slide 17: 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 17 Note: Historical Sales represent actual CHF values, growth figures in LC
Slide 18: 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 19: Balanced Business Mix
BALANCED BUSINESS MIX STRONG CROSS-SELLING INTO VERTICAL MARKETS RESIDENTIAL 20% INFRASTRUCTURE 30% COMMERCIAL 35% AUTOMOTIVE & INDUSTRY 15% 19
Slide 20: 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 bolt-on acquisitions with CHF 50 million sales on average* * excluding large acquisition (MBCC) 20
Slide 21: 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 22: Agenda
1. HIGHLIGHTS 2024, THOMAS HASLER (CEO) 2. SUCCESSFUL FIRST YEAR OF STRATEGY 2028, THOMAS HASLER (CEO) 3. STRONG BUSINESS EXECUTION, THOMAS HASLER (CEO) 4. FINANCIAL RESULTS, ADRIAN WIDMER (CFO) 5. OUTLOOK, THOMAS HASLER (CEO), CHRISTOPH GANZ (EMEA), MIKE CAMPION (AMERICAS), PHILIPPE JOST (ASIA/PACI
Slide 23: 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 24: 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 24
Slide 25: 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 26: 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 27: 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 28: Agenda
1. HIGHLIGHTS 2024, THOMAS HASLER (CEO) 2. SUCCESSFUL FIRST YEAR OF STRATEGY 2028, THOMAS HASLER (CEO) 3. STRONG BUSINESS EXECUTION, THOMAS HASLER (CEO) 4. FINANCIAL RESULTS, ADRIAN WIDMER (CFO) 5. OUTLOOK, THOMAS HASLER (CEO), CHRISTOPH GANZ (EMEA), MIKE CAMPION (AMERICAS), PHILIPPE JOST (ASIA/PACI
Slide 29: Financial Highlights 2024
FINANCIAL HIGHLIGHTS 2024 Net sales: CHF 11,763.1 million (+7.4% in LC, +4.7% in CHF) Further improved profitability on all levels: Expansion of Material Margin of +0.9% pts to 54.5% (53.6% in previous year) EBITDA: CHF 2,269.5 million (+11.0%) or 19.3% of net sales (vs. 18.2% in previous ye
Slide 30: 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 30
Slide 31: 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% 13.1% 3.4% 6% in LC 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 31
Slide 32: 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 33: 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 34: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET SOLID BALANCE SHEET WITH EQUITY RATIO OF 44% in CHF mn 31.12.2023 31.12.2024 Δ% Cash and cash equivalents 643.9 707.5 +9.9% Other current assets 3,561.4 3,855.8 +8.3% Current assets 4,205.3 4,563.3 +8.5% Fixed assets 2,257.3 2,458.5 +8.9% Intangible assets 8,218.1 8,616.1
Slide 35: Operating Free Cash Flow Development
OPERATING FREE CASH FLOW DEVELOPMENT -163 556 -213 -340 1,743 1,563 1,403 Net profit Depr./Amort. Change NWC Tax / other CF operating CapEx OFCF before tax activities 35 2023 2024
Slide 36: Operating Free Cash Flow: Above 10% Net Sales Target
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 36
Slide 37: 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 37
Slide 38: Board Proposes CHF 3.60 Dividend per Share
DIVIDEND BOARD OF DIRECTORS PROPOSES CHF 3.60 DIVIDEND PER SHARE Dividend payment of CHF 3.60 per share (+9.1% vs. previous year) in CHF mn 2023 2024 Group profit (after minorities) 1,062.0 1,245.5 Dividend payment total 529.6 577.8 Dividend out of retained earnings 264.8 288.9 Dividend out of capit
Slide 39: Agenda
1. HIGHLIGHTS 2024, THOMAS HASLER (CEO) 2. SUCCESSFUL FIRST YEAR OF STRATEGY 2028, THOMAS HASLER (CEO) 3. STRONG BUSINESS EXECUTION, THOMAS HASLER (CEO) 4. FINANCIAL RESULTS, ADRIAN WIDMER (CFO) 5. OUTLOOK, THOMAS HASLER (CEO), CHRISTOPH GANZ (EMEA), MIKE CAMPION (AMERICAS), PHILIPPE JOST (ASIA/PACI
Slide 40: Outlook Region EMEA
OUTLOOK REGION EMEA Continued challenging market environment in European construction and Automotive & Industry markets expected; booming markets in Africa and Middle East Low-single digit growth for the region expected; Middle East and Africa as growth Number one in residential construction eng
Slide 41: Outlook Region Americas
OUTLOOK REGION AMERICAS Positive market trend developing specially in the USA, cautious optimism in LATAM Sika expects growth of mid-single digit for the region with strong growth in the USA, in Brazil, and LATAM South Thanks to our local presence, close to 100% of all products and solutions t
Slide 42: Outlook Region Asia/Pacific
OUTLOOK REGION ASIA/PACIFIC Consumer confidence in China remains at low levels, resulting in a continuously difficult Chinese construction market, while markets in India, Indonesia, Vietnam, and Malaysia show robust growth rates. India’s first bullet train project, spanning Sika expects slight g
Slide 43: Outlook: Confirmation of 2028 Strategic Targets
OUTLOOK CONFIRMATION OF 2028 STRATEGIC TARGETS For 2025, Sika expects sales growth in local currencies of 3-6% 2025 expected Over-proportional increase in EBITDA and sales growth in LC expansion of EBITDA-margin to 19.5%-19.8% Confirmation of 2028 strategic mid-term targets for sustainable, pr
Slide 44: Agenda
1. HIGHLIGHTS 2024, THOMAS HASLER (CEO) 2. SUCCESSFUL FIRST YEAR OF STRATEGY 2028, THOMAS HASLER (CEO) 3. STRONG BUSINESS EXECUTION, THOMAS HASLER (CEO) 4. FINANCIAL RESULTS, ADRIAN WIDMER (CFO) 5. OUTLOOK, THOMAS HASLER (CEO), CHRISTOPH GANZ (EMEA), MIKE CAMPION (AMERICAS), PHILIPPE JOST (ASIA/PACI
Slide 45: Thank You for Your Attention
EERE Pa eee THANK YOU FOR YOUR ATTENTION BUILDING TRUST