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 APRIL 21, 2020
Slide 2: First Quarter 2020
FIRST QUARTER 2020 ® BUILDING TRUST Bs
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: 2019 Business Year
2019 BUSINESS YEAR ® BUILDING TRUST Bs
Slide 7: 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 8: 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 8
Slide 9: Sales Development
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 10: Strong Growth Momentum in All Regions
STRONG GROWTH MOMENTUM IN ALL REGIONS 16.3% SALES GROWTH (14.4% IN CHF) IN 2019 +16.3% +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) 10
Slide 11: 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 12: High Operating Speed Continued in 2019: Five Acquisitions
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 13: 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 14: 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 14
Slide 15: 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 16: 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] 16
Slide 17: Sika Clearly Outperforms Competitors
SIKA CLEARLY OUTPERFORMS COMPETITORS ORGANIC GROWTH SIGNIFICANTLY ABOVE PEERS IN THE PAST YEARS Sika Peers Sika Peers Sika Peers 17
Slide 18: Strategy 2023
STRATEGY 2023 ® BUILDING TRUST Bs
Slide 19: 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 20: Sika Is Committed to Sustainability
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 21: Strong Innovation Pipeline
STRONG INNOVATION PIPELINE MORE PERFORMANCE – MORE SUSTAINABLE PERFORMANCE 21
Slide 22: 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 23: 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 24: 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 25: Current Situation
CURRENT SITUATION ® BUILDING TRUST Bs
Slide 26: Measures Addressing Current Situation
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 27: Thank You for Your Attention
= 5 : = Fs THANK YOU FOR YOUR ATTENTION ® BUILDING TRUST By
Slide 28: 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