Slide 1: Record Results in 2019 and Continued Successful Strategy Execution
RECORD RESULTS IN 2019 AND CONTINUED SUCCESSFUL STRATEGY EXECUTION SIKA INVESTOR PRESENTATION MARCH 27, 2020
Slide 2: Overview
OVERVIEW ® BUILDING TRUST By
Slide 3: Highlights 2019
HIGHLIGHTS 2019 1. Record results ▪ Sales growth of 14.4% in CHF to CHF 8,109.2 million in 2019 (16.3% in local currencies) ▪ CHF 1,387.6 million EBITDA (+20.7%) ▪ CHF 1,055.1 million EBIT (+11.5%) ▪ CHF 758.5 million net profit (+10.4%) ▪ CHF 1,026.1 million operating free cash flow (+99.9%) 2. Key
Slide 4: Key Figures: Record Results on All Levels
KEY FIGURES RECORD RESULTS ON ALL LEVELS in CHF mn 2018 2019 Δ% Net sales 7,085.4 8,109.2 + 14.4 Gross margin 53.0% 53.6% EBITDA 1,149.9 1,387.6 +20.7 EBIT 945.9 1,055.1 + 11.5 Net profit 687.1 758.5 + 10.4 Operating free cash flow 513.2 1,026.1 + 99.9 4
Slide 5: Sales Development: 16.3% Growth in Local Currencies in 2019
SALES DEVELOPMENT 16.3% GROWTH IN LOCAL CURRENCIES IN 2019 18% 16.3% 13.6% 16% 14% 12% 9.0% 10% 6.8% 13.0% 2.7% 8% in LC 6% acquisition 4% organic 6.3% 6.8% 3.3% 2% 0% 9M 2017 9M 2018 9M 2019 2017 2018 2019 In 2019, sales growth of acquired businesses since initial consolidation is included in organ
Slide 6: Strong Growth Momentum in All Regions
STRONG GROWTH MOMENTUM IN ALL REGIONS + 16.3% 16.3% SALES GROWTH (14.4% IN CHF) IN 2019 + 11.6% + 35.1% 8,109.2 + 19.2% Group + 3.0% 1,585 2,162 3,432 Asia/Pacific Americas 930 EMEA Global Business 2018 2019 (in CHF million, growth in LC) 6
Slide 7: High Operating Speed Continued in 2019: Investments in Seven Plants
HIGH OPERATING SPEED CONTINUED IN 2019 INVESTMENTS IN SEVEN PLANTS Opening of Sika plants: Mortar plant Mortar plant Senegal, Dakar Cameroon, Douala Concrete admixture plant Third plant Qatar, Doha Indonesia, Jakarta Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Mortar plant Ethiopia, Addis Ababa
Slide 8: Five Acquisitions in 2019 – Integration on Track
HIGH OPERATING SPEED CONTINUED IN 2019 FIVE ACQUISITIONS IN 2019 – INTEGRATION ON TRACK Total annual sales: CHF 1,458 million Parex, Global Crevo-Hengxin, China Building Finishing, Waterproofing, Flooring Sealing & Bonding King Packaged Materials, Canada Concrete, Refurbishment Jan Feb Mar Apr May J
Slide 9: Fast and Successful Integration of Parex
FAST AND SUCCESSFUL INTEGRATION OF PAREX EXCELLENT PROGRESS First SHOP IN TOTAL SYNERGIES TOTAL COST SHOP concept Around CHF 100 SYNERGIES launched in China million identified CHF 55 million in 2,100 STORES FAST ORGANIZATIONAL CROSS-SELLING INTEGRATION CHF 230 million of Over 20 countries in fully r
Slide 10: Building Finishing as Our Eighth Target Market
BUILDING FINISHING AS OUR EIGHTH TARGET MARKET HIGHER MARKET PENETRATION Building Finishing Concrete Waterproofing Roofing new Flooring & Coating Sealing & Bonding Refurbishment Industry 10
Slide 11: Building Finishing: Higher Market Penetration
BUILDING FINISHING AS OUR EIGHTH TARGET MARKET HIGHER MARKET PENETRATION Technical Mortars / Other Sika Target Markets Building Finishing – Tile Adhesives and Facade Mortars Highly technical building and infrastructure Residential and light commercial focus projects Direct sales to large contractors
Slide 12: Curing-by-Design – Example of Bus Manufacturer
WINNER OF SWISS TECHNOLOGY AWARD CURING-BY-DESIGN – EXAMPLE OF BUS MANUFACTURER Cost savings up to 75% - Time savings approx. 90% Curing behavior SikaForce®-803 100’000 80’000 60’000 viscosity 40’000 20’000 0 0 50 100 150 time [min] 12
Slide 13: Sika Clearly Outperforms Competitors
SIKA CLEARLY OUTPERFORMS COMPETITORS ORGANIC GROWTH SIGNIFICANTLY ABOVE PEERS IN THE PAST YEARS Sika Peers Sika Peers Sika Peers 13
Slide 14: Strategy 2023
STRATEGY 2023 ® BUILDING TRUST By
Slide 15: Sika's Growth Strategy 2023: The Pillars of the Strategy
SIKA’S GROWTH STRATEGY 2023 THE PILLARS OF THE STRATEGY SUSTAINABILITY Market Penetration 6-8% annual growth 15-18% EBIT margin Until 2020: <15% Innovation Operational Efficiency 25% of sales with new >10% products Operating free cash flow per year as % of net sales Acquisitions 0.5% pts non-materia
Slide 16: Sika Is Committed to Sustainability: Our Targets
SIKA IS COMMITTED TO SUSTAINABILITY OUR TARGETS ▪ Overall target: 12% CO2 emission reduction per ton sold SUSTAINABLE SOLUTIONS CLIMATE PERFORMANCE ▪ All new product developments with “Sustainable ▪ 12% reduction of CO2-emissions per ton Solutions” until 2023 sold until 2023 COMMUNITY ENGAGEMENT ENE
Slide 17: Strong Innovation Pipeline: More Performance – More Sustainable
STRONG INNOVATION PIPELINE MORE PERFORMANCE – MORE SUSTAINABLE PERFORMANCE 17
Slide 18: New Solutions: More Performance – More Sustainable
STRONG INNOVATION PIPELINE NEW SOLUTIONS: MORE PERFORMANCE – MORE SUSTAINABLE HYDROFLEX SEALANTS NEW EPOXY FLOOR COATINGS HEMP BASED, CEMENT-FREE MORTARS Better stretchability, adhesion Improved blushing resistance, Thermal and phonic insulation and application properties significantly reduced yello
Slide 19: Sika at the Forefront of Construction
SIKA AT THE FOREFRONT OF CONSTRUCTION NEW TECHNOLOGIES CHANGE THE INDUSTRY Sika’s structural glazing changed Sika’s concrete admixtures make the industry in 2000 supertall skyscrapers possible © 6sqft The Gherkin, London One Vanderbilt, New York In the future digitalization and industrialization of
Slide 20: Improve Operational Efficiency: Key Initiatives
IMPROVE OPERATIONAL EFFICIENCY KEY INITIATIVES HIGH LEVEL OF SMART OPTIMIZED GLOBAL TEAMS AUTOMATION PACKAGING LOGISTICS OF EXPERTS Improved efficiency Reduction in material Efficient goods flows Group-wide cuts costs and reduces consumption combined in local markets, optimization of product ecologi
Slide 21: Current Situation
CURRENT SITUATION ® BUILDING TRUST By
Slide 22: Measures Addressing Current Situation: Keep High Flexibility
MEASURES ADDRESSING CURRENT SITUATION KEEP HIGH FLEXIBILITY Measures ▪ General ▪ Strong local Response Team in every country Operational ▪ Preparation and response according to local situation which differs from country to country Agility ▪ Taking advantage of local support measures ▪ China ▪ All Ch
Slide 23: Thank You for Your Attention
= 5 : = Fs THANK YOU FOR YOUR ATTENTION ® BUILDING TRUST By
Slide 24: 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