Slide 1: Strong Sales Growth in First Quarter 2020 – Slower in March Due to COVID-19
STRONG SALES GROWTH IN FIRST QUARTER 2020 – SLOWER IN MARCH DUE TO COVID-19 SIKA INVESTOR PRESENTATION JUNE 2020
Slide 2: First Quarter 2020
FIRST QUARTER 2020 ® BUILDING TRUST By
Slide 3: Highlights Q1 2020
HIGHLIGHTS Q1 2020 15.4% SALES GROWTH IN LOCAL CURRENCY (10.3% IN CHF) ▪ Sales increase of 15.4% in local currencies to CHF 1,813.6 million (+10.3% in CHF) ▪ Negative currency effect of –5.1% ▪ Acquisition of Adeplast (Romania) concluded, new production facility in Sarnen (Switzerland) opened ▪ Outl
Slide 4: Positive Growth in the First Quarter 2020
POSITIVE GROWTH IN THE FIRST QUARTER 2020 15.4% SALES GROWTH IN LOCAL CURRENCY (10.3% IN CHF) +15.4% +13.3% +29.8% 1,814 +23.0% Group -7.1% 333 481 Asia/Pacific Americas 786 214 EMEA Global Business 1Q 2019 1Q 2020 (in CHF million, growth in LC) 4
Slide 5: Positive Growth in the First Quarter 2020
POSITIVE GROWTH IN THE FIRST QUARTER 2020 15.4% SALES GROWTH IN LOCAL CURRENCY (10.3% IN CHF) 15.4% -1.3% organic +16.7% acquisition Q1 2018 Q1 2019 Q1 2020 in CHF million Sales 1,554.0 1,645.2 1,813.6 5
Slide 6: High Operating Speed Continued: Investments in Seven Plants in 2019
HIGH OPERATING SPEED CONTINUED INVESTMENTS IN SEVEN PLANTS IN 2019 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 7: High Operating Speed Continued: Five Acquisitions in 2019
HIGH OPERATING SPEED CONTINUED 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 Jun Jul A
Slide 8: New Target Market Building Finishing
NEW TARGET MARKET BUILDING FINISHING
Slide 9: Fast and Successful Integration of Parex
FAST AND SUCCESSFUL INTEGRATION OF PAREX EXCELLENT PROGRESS TOTAL SYNERGIES TOTAL COST CHF 25 MILLION+ Around CHF 100 SYNERGIES Run rate synergies million identified CHF 55 million achieved to date PRODUCT SHOP IN SHOP CROSS-SELLING LAUNCHES concept 500+ initiatives tracked, 34 new products launched
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 as Our Eighth Target Market
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: Strategy 2023
STRATEGY 2023 ® BUILDING TRUST By
Slide 13: Sika's Growth Strategy 2023
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 14: Sustainable Strategy: More Value, Less Impact
SUSTAINABLE STRATEGY MORE VALUE, LESS IMPACT - SUSTAINABILITY TARGETS SUSTAINABLE SOLUTIONS CLIMATE PERFORMANCE COMMUNITY ENGAGEMENT We are leading the industry by pioneering a We run our business in a responsible way and We build trust and create value – with comprehensive portfolio of customer foc
Slide 15: Strong Innovation Pipeline
STRONG INNOVATION PIPELINE MORE PERFORMANCE – MORE SUSTAINABLE PERFORMANCE 15
Slide 16: Strong Innovation Pipeline: New Solutions
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 17: 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 18: 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] 18
Slide 19: 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 20: Sika Clearly Outperforms Competitors
SIKA CLEARLY OUTPERFORMS COMPETITORS ORGANIC GROWTH SIGNIFICANTLY ABOVE PEERS IN THE PAST YEARS Sika Peers Sika Peers Sika Peers 20
Slide 21: Current Situation
CURRENT SITUATION ® BUILDING TRUST By
Slide 22: Measures Addressing Current Situation
MEASURES ADDRESSING CURRENT SITUATION KEEP HIGH FLEXIBILITY Measures ▪ General ▪ Strong local management teams in the countries Operational ▪ Preparation and response according to local situation which differs from country to country, Agility scenario planning ▪ Taking advantage of local support mea
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