Slide 1: Sika with record sales of 11.24 billion in 2023
SIKA WITH RECORD SALES OF 11.24 BILLION IN 2023 REVENUE GROWTH OF +7.1% IN CHF (+14.5% IN LOCAL CURRENCIES) SIKA INVESTOR PRESENTATION BAAR, 10 JANUARY 2024
Slide 2: Agenda
1. SIKA WITH RECORD SALES IN 2023 2. OUR NEW STRATEGY 2028 – BEYOND THE EXPECTED 3. OUTLOOK
Slide 3: 1. Sika with record sales in 2023
1. SIKA WITH RECORD SALES IN 2023
Slide 4: Sika with record sales in 2023: growth in local currencies of 14.5%
SIKA WITH RECORD SALES IN 2023 GROWTH IN LOCAL CURRENCIES OF 14.5% 1. Sales Sika posts record sales of CHF 11.24 billion in 2023 Revenue growth of +7.1% in CHF (+14.5% in local currencies) High, negative foreign currency effect of -7.4% due to sharp appreciation of the Swiss franc 2. Key inves
Slide 5: Integration of MBCC acquisition well on track
INTEGRATION OF MBCC ACQUISITION WELL ON TRACK UPDATED SYNERGIES OF CHF 180–200 MILLION P.A. BY 2026 200 180 180 160 Initial guidance Updated guidance in CHF mn 5
Slide 6: Sales growth of 14.5% in local currencies
SIKA WITH RECORD SALES IN 2023 SALES GROWTH OF 14.5% IN LOCAL CURRENCIES + 14.8% + 14.5% + 14.9% + 15.2% + 10.0% 3.42 4.50 2.48 0.84 11.24 Americas EMEA Asia/Pacific Global Business Group 2022 2023 (in CHF billion, growth in LC) 6
Slide 7: Sales growth of 14.5% in local currencies
SIKA WITH RECORD SALES IN 2023 SALES GROWTH OF 14.5% IN LOCAL CURRENCIES 19% 17.1% 15.8% 2.0% 14.5% 14% 2.7% 13.3% 9% 15.1% 13.1% 4% in LC acquisition 1.2% organic -1% -6% in CHF bn 2021 2021 2022 2022 2023 2023 Net sales 9.25 bn 10.49 bn 11.24 bn 7
Slide 8: Sales growth of 14.5% in local currencies
SIKA WITH RECORD SALES IN 2023 SALES GROWTH OF 14.5% IN LOCAL CURRENCIES +8.6% +7.2% +5.3% +4.6% Growth in CHF +14.8% +14.9% +15.2% +10.0% Growth in LC - 6.2% - 7.7% - 9.9% - 5.4% FX impact +15.7% +16.2% +9.7% + 0.0% Acquisition 19% 81% Construction Industry EMEA Americas Asia/Pacific Global Busines
Slide 9: 2. Our new Strategy 2028 – Beyond the expected
2. OUR NEW STRATEGY 2028 – BEYOND THE EXPECTED
Slide 10: Strategy 2028 – Profitable growth to continue
STRATEGY 2028 – BEYOND THE EXPECTED PROFITABLE GROWTH TO CONTINUE 23.0% 20.0% EBITDA 18.7% EBITDA 16.4% 10.5 bn 7.1 bn 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 10 Note: Historical Sales represent actual CHF values, growth figures in LC
Slide 11: Megatrends driving sustainable growth
MEGATRENDS DRIVING SUSTAINABLE GROWTH FURTHER ACCELERATION POPULATION GROWTH URBANIZATION DEMOGRAPHIC RESOURCE SCARCITY CHANGE CLIMATE CHANGE & INCREASING TECHNOLOGICAL DIGITALIZATION SUSTAINABILITY REGULATIONS PROGRESS 11
Slide 12: Market share in construction chemicals and industry
MARKET SHARE IN CONSTRUCTION CHEMICALS AND INDUSTRY TOTAL ADDRESSABLE MARKET 2023: CHF 110 BILLION 11% 45% Top 30 competitors Competitive landscape (incl. Sika) account remains very fragmented despite for 55% of market ongoing M&A activity share 12
Slide 13: Sika's growth strategy 2028: the pillars of the strategy
SIKA’S GROWTH STRATEGY 2028 THE PILLARS OF THE STRATEGY 6-9% 20% annual growth in LC GHG emission reduction MARKET PENETRATION Scope 1 & 2 (absolute reduction vs. 2022 base line) INNOVATION & 20-23% EBITDA* Scope 3 reduction in line with net-zero pledge SUSTAINABILITY >80% ACQUISITIONS >10% Operatin
Slide 14: Strong execution and benefits of megatrends
STRONG EXECUTION AND BENEFITS OF MEGATRENDS SIKA STRONGLY POSITIONED IN 2023 AND BEYOND URBANIZATION CLIMATE CHANGE AND SUSTAINABILITY Our growth ambition 6-9 % DIGITALIZATION INCREASING REGULATIONS Sika’s average annual growth rate DEMOGRAPHIC CHANGE in local currencies TECHNOLOGICAL PROGRESS RESOU
Slide 15: Market penetration and its levers
MARKET PENETRATION AND ITS LEVERS THE ART OF INCREASING MARKET SHARE Leveraging Cross- Multi-channel Go where Key High potential strong position selling approach the money is geographies markets 15
Slide 16: Market penetration and its levers: examples
MARKET PENETRATION AND ITS LEVERS EXAMPLES Multi-channel approach Go where the money is Following a multi-channel approach with Focusing on high business potential across dedicated and specialized teams regions and verticals DIRECT BUSINESS RETAIL BUSINESS TRADE BUSINESS E-COMMERCE 16
Slide 17: Market penetration – high potential markets
MARKET PENETRATION – HIGH POTENTIAL MARKETS FAST AND EFFICIENT CONSTRUCTION VIA MODULAR BUILDING Strongly growing market Growing population and urbanization drive the need for fast and efficient off-site construction Iconic projects like Neom initiate the change to industrialized construction Sika h
Slide 18: Innovation & sustainability – transforming innovation and effective sustainability
INNOVATION & SUSTAINABILITY – TRANSFORMING INNOVATION AND EFFECTIVE SUSTAINABILITY PRESERVE NATURAL CLIMATE CHANGE INNOVATION RESOURCES MITIGATION Increase water and waste Reduction direct and All new product developments efficiency. indirect emissions. to be SPM validated. Reduce usage of hazardous
Slide 19: Sika's net zero pathway – driving the transformation
INNOVATION & SUSTAINABILITY – STRATEGIC PILLARS 2028 SIKA’S NET ZERO PATHWAY – DRIVING THE TRANSFORMATION OUR KEY LEVERS Education and capacity building to improve material efficiency and circularity Accelerated use Continued focus of alternative on operational low carbon efficiencies supplies Partn
Slide 20: Sustainability Portfolio Management (SPM)
INNOVATION & SUSTAINABILITY – ENABLING SUSTAINABLE SOLUTIONS SUSTAINABILITY PORTFOLIO MANAGEMENT (SPM) The SPM evaluates solutions based on All new product 12 sustainability and 6 performance developments to be categories. SPM validated with a SPM is used to classify, and market positive validat
Slide 21: GHG emissions - Scope 1, 2, and 3
INNOVATION & SUSTAINABILITY GHG EMISSIONS - SCOPE 1, 2, AND 3 Scope 1 and 2 Scope 3 -20% in line with net zero pledge absolute emission reduction Reduction of use of fossil fuels in Optimizing formulations: production processes and Cement reduction, bio-based raw transportation materials, recycled r
Slide 22: Investing in our people & culture is investing in our future success
WE BUILD TRUST EVERYDAY INVESTING IN OUR PEOPLE OUR EMPLOYEES FEEL VALUED, EMPOWERED AND PROUD TO WORK FOR SIKA & CULTURE IS INVESTING SAFE ENGAGED INCLUSIVE IN OUR FUTURE SUCCESS. LEADERS ARE IN CHARGE. Be effective leaders that build a safe, attractive and inclusive environment where people feel i
Slide 23: Employee engagement - reconfirm our high score
PEOPLE & CULTURE EMPLOYEE ENGAGEMENT - RECONFIRM OUR HIGH SCORE Engagement as key performance metric to measure resilience and sustainability of an organization. Highly engaged employees drive performance and business success. Sika’s strong Corporate culture as most competitive advantage. EMPLOY
Slide 24: 3. Outlook
3. OUTLOOK ® BUILDING TRUST ViN
Slide 25: Outlook for fiscal 2023 confirmed
OUTLOOK FOR FISCAL 2023 CONFIRMED GROWTH STRATEGY 2028 – BEYOND THE EXPECTED Confirmation of over-proportional EBIT increase for the year, excluding the effect of the MBCC acquisition Operating free cash flow of over 10% expected (as % of net sales) 25
Slide 26: Thank you for your attention
a 1 "| i a am F A 3 i ce om = alll = ‘l | THANK YOU FOR YOUR ATTENTION ® BUILDING TRUST Bs
Slide 27: 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