Sika Ag · SIX:SIKA

Sika — Shareholder Meeting (April 2018)

26 slides from Sika's shareholder meeting presentation, Apr 17, 2018

  1. Slide 1: Welcome to the Annual General Meeting of Sika AG

    WELCOME TO THE ANNUAL GENERAL MEETING OF SIKA AG APRIL 17, 2018

  2. Slide 2: Constitution

    CONSTITUTION ANNUAL GENERAL MEETING APRIL 17, 2018

  3. Slide 3: Vote Counters

    VOTE COUNTERS  Caroline Inauen (Lead)  Eveline Ulmann  Margrit Zweifel  Julia Bachmann  Christa Blättler  Deborah Blatter  Gabi Rebsamen  Naemi Stühlinger  Sarah Schütz  Beatrice Jenni  Catherine Bedö  Corinne Lenggenhager  Céline Volles 3

  4. Slide 4: Agenda

    AGENDA Strategy and Current Situation Dr. Paul Hälg, Chairman of the Board of Directors Statutory Items Dr. Paul Hälg, Chairman of the Board of Directors Under Agenda Item 1: Paul Schuler, Chief Executive Officer 2017 Business Year, First Quarter 2018 and Outlook 4

  5. Slide 5: Strategy and Current Situation

    STRATEGY AND CURRENT SITUATION DR. PAUL HÄLG CHAIRMAN OF THE BOARD

  6. Slide 6: 50th Sika Annual General Meeting Thank You for Your Loyalty

    50TH SIKA ANNUAL GENERAL MEETING THANK YOU FOR YOUR LOYALTY 6

  7. Slide 7: Megatrends Drive Our Growth

    MEGATRENDS DRIVE OUR GROWTH URBANIZATION, NEW VEHICLE DESIGN AND SUSTAINABILITY New modular vehicle Increasing world manufacturing population with Increased safety, fire, concepts need fast, urbanization and water, earthquake and high strength megacities quality requirements bonding systems Rising d

  8. Slide 8: Market Penetration - Focus on Attractive Markets

    MARKET PENETRATION - FOCUS ON ATTRACTIVE MARKETS: CROSS-SELLING, LIFE-CYCLE MANAGEMENT, A STRONG BRAND Concrete Waterproofing Roofing Flooring & Coating Sealing & Bonding Refurbishment Industry 8

  9. Slide 9: Sika's Total Shareholder Return Outperforming Its Peers

    SIKA’S TOTAL SHAREHOLDER RETURN OUTPERFORMING ITS PEERS Total Shareholder Return (last 5 years) Sika created Sika 272% Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 3x Peer 6 the average Peer 7 shareholder return Peer 8 Peer 9 of the peer group Average Peer 10 90.4% 0% 50% 100% 150% 200% 250% 9

  10. Slide 10: Global but Local: The Sika Strategy and Its Decentralized Implementation

    GLOBAL BUT LOCAL THE SIKA STRATEGY AND ITS DECENTRALIZED IMPLEMENTATION 10

  11. Slide 11: Global but Local: Subsidiarity in Supply Chain and Technology

    GLOBAL BUT LOCAL SUBSIDIARITY IN SUPPLY CHAIN AND TECHNOLOGY 11

  12. Slide 12: The Sika Spirit: Strong Corporate Culture

    THE SIKA SPIRIT STRONG CORPORATE CULTURE WE ARE SIKA STRONG – WE ARE SIKA PROUD 12

  13. Slide 13: Sika's Growth Model Delivers Continued Growth in Sales and Profit

    SIKA’S GROWTH MODEL DELIVERS CONTINUED GROWTH IN SALES AND PROFIT (FULL YEAR) NETSALES NET 70 00 SALES 16 .0 % EBIT 11 00 14.3% 16 .0 % 10 00 13.8% % growth in local currencies as % of net sales 14 .0 % 65 00 14 .0 % 90 0 12.3% 5.3% 9.4% 13.0% 6.2% 5.5% 9.0% 11.4% 12 .0 % 80 0 12 .0 % 60 00 10.2% 70

  14. Slide 14: Trust in the Capital Market: Sika Entered the SMI

    TRUST IN THE CAPITAL MARKET SIKA ENTERED THE SWISS MARKET INDEX (SMI) ON MAY 15, 2017  Since December 2011 the market capitalization has increased by around 380%  Current market capitalization of CHF 18 billion  Sika as a Blue Chip among the 20 largest Swiss companies 7,350 1,530 December 2011 Ap

  15. Slide 15: Cantonal Court of Zug Decision of October 27, 2016

    CANTONAL COURT OF ZUG DECISION OF OCTOBER 27, 2016 “In view of the above considerations the restriction of [SWH]'s voting rights to 5% with respect to the elections in question was justified. Hence, these resolutions were made in conformity with the law and with the articles of association.“ 15

  16. Slide 16: Restriction of the Voting Rights to 5% of All Registered Shares

    RESTRICTION OF THE VOTING RIGHTS TO 5% OF ALL REGISTERED SHARES FOR THE FOLLOWING AGENDA ITEMS  4.1. Votings on the re-election of the independent board members Frits van Dijk, Paul J. Hälg, Monika Ribar, Daniel J. Sauter, Ulrich W. Suter and Christoph Tobler, but not in respect of the re-election

  17. Slide 17: 2017 Business Year

    2017 BUSINESS YEAR PAUL SCHULER CHIEF EXECUTIVE OFFICER

  18. Slide 18: Highlights 2017

    HIGHLIGHTS 2017 1. Continued growth  +9.0% sales growth in local currencies to CHF 6,248.3 million  CHF 896.3 million EBIT (+12.7%)  CHF 649.0 million net profit (+14.5%)  CHF 496.8 million operating free cash flow (-15.3%)  29.8% ROCE (+1.1 percentage points) 2. Key investments  3 new nationa

  19. Slide 19: Growth Momentum Continues in 2017

    GROWTH MOMENTUM CONTINUES IN 2017 9.0% SALES GROWTH (8.7% IN CHF) + 7.5% + 18.4% 1,094 + 5.2% North America 1,133 + 3.3% 2,875 Asia/Pacific 590 EMEA Latin America 12M 2016 12M 2017 (in CHF mn, growth in LC) 19

  20. Slide 20: Key Investments in 2017: Expansion in Emerging Markets

    KEY INVESTMENTS IN 2017 EXPANSION IN EMERGING MARKETS Opening of Sika plants:  5th plant in Mexico (Coatzacoalcos, March 2017)  New and expanded site in Kazakhstan (Almaty, May 2017)  1s t plant in Tanzania (Dar es Salaam, June 2017)  5th plant in Russia (Lobnya, July 2017)  New and expanded si

  21. Slide 21: Key Investments in 2017: Expansion in Emerging Markets

    KEY INVESTMENTS IN 2017 EXPANSION IN EMERGING MARKETS New subsidiaries:  Senegal (April 2017)  El Salvador (September 2017)  Bangladesh (December 2017) 21

  22. Slide 22: Sika's Subsidiaries

    SIKA’S 100 SUBSIDIARIES usta 1534 Rane 2005 aazi-19.¢ PORTUGAL 1990 «2 : a arvia- 2007 N i+] sks ‘OwTED ARAB EMIRATES 2008 Wye 14 AaRCERTNA 1938 PAKISTAN 200 NORWAY 1968 aNWaN 1991 it yoroan -201 E Lorna 197 Sz Par [| f I unc -1983 mag-20% eLcuM-rae9 IRAN-1677 PAILPPHIS 1983 wewa-2012 MazaMigue 20%

  23. Slide 23: First Quarter 2018 and Outlook

    FIRST QUARTER 2018 AND OUTLOOK

  24. Slide 24: Highlights Q1 2018

    HIGHLIGHTS Q1 2018 1. Strong start to 2018  +11.0% sales growth in local currencies to CHF 1,554.0 million  Strong outlook 2018 for Sika confirmed 2. Key investments  New national subsidiary in Honduras  New plant in Vietnam  Acquisition of Index in Italy 3. Strategy  Strategic targets for 202

  25. Slide 25: Growth Momentum Continues in 2018

    GROWTH MOMENTUM CONTINUES IN 2018 11.0% SALES GROWTH (11.9% IN CHF) + 10.2% + 12.2% + 3.9% + 20.9% 258 216 389 Asia/Pacific Global Business Americas 692 EMEA 3M 2017 3M 2018 (in CHF mn, growth in LC) 25

  26. Slide 26: Strong Outlook for 2018

    STRONG OUTLOOK FOR 2018 CONTINUATION OF SUCCESSFUL GROWTH STRATEGY  Sales increase of more than 10% expected with a sales target of CHF 7 billion in 2018  Volatile and rising raw material prices will continue to be a challenge  Disproportionately high growth in profit expected for the year 2018 a

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