Sika Ag · SIX:SIKA
Sika — Investor Day (October 2024)
32 slides from Sika's investor day presentation, Oct 3, 2024
Slide 1: Sika Capital Market Day 2024: Unlock Growth with Durability and Circularity
SIKA CAPITAL MARKET DAY 2024 UNLOCK GROWTH WITH DURABILITY AND CIRCULARITY THOMAS HASLER, CEO ZURICH, OCTOBER 3, 2024
Slide 2: Agenda
1. HIGHLIGHTS 2024 2. OUR FIRST YEAR OF STRATEGY 2028 3. UNLOCK GROWTH WITH DURABILITY AND CIRCULARITY 4. OUTLOOK 2024
Slide 3: 1. Highlights 2024
1. HIGHLIGHTS 2024 ® BUILDING TRUST By
Slide 4: Highlights First Half-Year 2024: Strong Sales Growth in Local Currencies
HIGHLIGHTS FIRST HALF-YEAR 2024 STRONG SALES GROWTH IN LOCAL CURRENCIES ACROSS ALL REGIONS + 15.1% + 13.5% + 8.0% + 12.8% z 5.84 2.05 2.57 1.22 Americas EMEA Asia/Pacific Group HY 2023 HY 2024 (in CHF billion, growth in LC) 4
Slide 5: Sika Gaining Market Share Over the Years
SIKA GAINING MARKET SHARE OVER THE YEARS OUTGROWING THE PEERS 21% 21% 17.1% 15.8% 16% 16% 2.0% 14.5% 2.7% 12.8% 11% 11% 15.1% 13.3% 12.7% 13.1% 13.2% 12.3% in LC 6% 6% acquisition organic 1.2% 1% 1% 0.5% -1.2% -3.5% peer growth (organic) -4% -4% in CHF bn 2021 FY 2021 2022 FY 2022 2023 FY 2023 2024
Slide 6: Continuous Investments in Future Growth
CONTINUOUS INVESTMENTS IN FUTURE GROWTH KEY INVESTMENTS IN 2024 Acquisition Kwik Bond New manufacturing facility New plant in Liaoning, Acquisition Vinaldom, S.A.S Polymers, US in Lima, Peru China in the Dominican Republic Polymer systems Production of synthetic Production of a full range of The pro
Slide 7: Sales Growth First Half-Year 2024
SALES GROWTH FIRST HALF-YEAR 2024 POSITIVE ORGANIC GROWTH – MBCC AS SIGNIFICANT CONTRIBUTOR in CHF mn -197 +620 +39 5,834.8 +28 5,345.5 Net sales Organic Bolt-on MBCC FX Net sales HY 23 acquisitions HY 24 (net) 7
Slide 8: Successful Integration of MBCC
SUCCESSFUL INTEGRATION OF MBCC ACCELERATION OF SYNERGY IMPACT – 2024 GUIDANCE RAISED 180 to 200 140 to 160 100 to 120 41 2023 2024 2025 2026 (in CHF million) 8
Slide 9: Highlights First Half-Year 2024: High Engagement Score of 86
HIGHLIGHTS FIRST HALF-YEAR 2024 HIGH ENGAGEMENT SCORE OF 86 HIGH ENGAGEMENT SCORE OF 86 86 Fueled by strong purpose and confidence in ENGAGEMENT SCORE management and strategy 9
Slide 10: 2. Our First Year of Strategy 2028
2. OUR FIRST YEAR OF STRATEGY 2028
Slide 11: Strategy 2028 – Beyond the Expected
STRATEGY 2028 – BEYOND THE EXPECTED PROFITABLE GROWTH TO CONTINUE 23.0% 20.0% EBITDA 18.2% EBITDA 16.4% 11.2 bn On track for 7.1 bn continued growth and value 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 creation 11 Note: Historical Sales represent actual CHF values, growth figures in LC
Slide 12: 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 13: Market Share in Construction Chemicals and Industry
MARKET SHARE IN CONSTRUCTION CHEMICALS AND INDUSTRY TOTAL ADDRESSABLE MARKET 2023: CHF 110 BILLION 11% Top 30 Competitive competitors landscape 45% (incl. Sika) remains very account for fragmented despite ongoing 55% M&A activity of market share 13
Slide 14: Benefits of Megatrends and Unlock Growth
BENEFITS OF MEGATRENDS AND UNLOCK GROWTH SIKA STRONGLY POSITIONED IN 2024 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 RESOURCE
Slide 15: Unlock Growth – Execution Is Key
UNLOCK GROWTH – EXECUTION IS KEY ABILITY TO ADAPT VOLATILE DECLINING MARKETS PERFORMING GROWTH MARKETS Our growth Our growth ambition ambition 3-6% >10% Sika’s average annual growth Sika’s average annual growth rate in local currencies rate in local currencies Acquisitions Market penetration Market
Slide 16: 3. Unlock Growth with Durability and Circularity
3. UNLOCK GROWTH WITH DURABILITY AND CIRCULARITY
Slide 17: Megatrends Driving Longer Lifespan Requirements
MEGATRENDS DRIVING LONGER LIFESPAN REQUIREMENTS INFRASTRUCTURE AND DATA CENTERS AND COMMERCIAL CONSTRUCTION SEMICONDUCTOR FACILITIES ▪ Resilient structures to withstand more ▪ Increased requirements for longer lifespans extreme weather for data centers and semiconductor facilities ▪ Reducing carbon
Slide 18: Infrastructure Lifespans
INFRASTRUCTURE LIFESPANS EXPLORING DURABILITY AND MAINTENANCE REQUIREMENTS TUNNELS More than 5,000 km of tunnel infrastructure will be built globally until 2028 WATER SUPPLY SYSTEMS Water supply infrastructure is aging globally with up to 40% of water systems nearing the end of their lifespan1 BRIDG
Slide 19: Durability and Its Impact on Emissions
DURABILITY AND ITS IMPACT ON EMISSIONS CO2 REDUCTION BY PROLONGING LIFESPAN According to different scenarios where the average lifespan of a residential/commercial building 30% is 40 or 60 years, the cumulative less CO2 with 20 kgCO2eq/m2 decreases by 30% years longer lifespan once the lifespan of a
Slide 20: Driving the Transformation of the Construction Sector
DRIVING THE TRANSFORMATION OF THE CONSTRUCTION SECTOR LONG DURABILITY BY EXTENDING THE LIFESPAN Linear construction Circular construction TIME MAKE USE Fit for purpose High quality CO2 optimized Digital Sustain Repurpose Not durable and durable raw materials monitoring and repair or recycle Not recy
Slide 21: Expanding the Lifespan Through Repurposing
DRIVING THE TRANSFORMATION OF THE CONSTRUCTION SECTOR EXPANDING THE LIFESPAN THROUGH REPURPOSING Battersea Power Zeitz Museum of Station, Contemporary Art, London (UK) Cape Town (SA) Canfranc Grand Palais, International Paris (FR) railway station, (Olympic Games) Canfranc (ES) 21
Slide 22: Durability Requirements in Infrastructure
DURABILITY REQUIREMENTS IN INFRASTRUCTURE TODAY'S PROJECTS ARE DESIGNED FOR 100+ YEARS Hudson River Tunnel, US Gordie Howe Bridge, US London Thames Tideway, UK Dubai’s Deep Tunnel, SA Brent Spence, US Forrestfield-Airport Link, AU Riedberg Tunnel, CH NS Highway, Vietnam 22
Slide 23: Customer Centricity
CUSTOMER CENTRICITY ENABLING CUSTOMERS WITH DURABLE AND CIRCULAR SOLUTIONS “In this project, Sika for us turned from a product supplier to a solution provider!” JASMIN AMBERG Project Manager Tunnelling / Board of Directors, Amberg Engineering 23
Slide 24: Increased Concrete Performance with Reinforcing Fibers
INCREASED CONCRETE PERFORMANCE WITH REINFORCING FIBERS DURABILITY AND SUSTAINABILITY FROM TO CONVENTIONAL REBARS-REINFORCED CONCRETE FIBER-REINFORCED CONCRETE ▪ 300 million tons of reinforcement steel per year ▪ 50 million tons of steel can be replaced by fibers ▪ 500 million tons of CO2eq for steel
Slide 25: High Potential in Concrete Fibers
HIGH POTENTIAL IN CONCRETE FIBERS DURABILITY AND SUSTAINABILITY CHALLENGES ▪ Steel reinforcement: cost and CO2 footprint ▪ Steel fibers: dangerous surfaces SOLUTIONS ▪ Sika® Macro Synthetic Fibers ▪ Sika® Stealth Fiber Technology APPLICATION ▪ Fiber pucks are added during concrete production ▪ Part
Slide 26: High Opportunity in Returned Concrete
HIGH OPPORTUNITY IN RETURNED CONCRETE CIRCULARITY AND SUSTAINABILITY CHALLENGES ▪ Globally, 4% of the fresh concrete is returned = 1,100 million tons! ▪ Heavy work needed to dispose SOLUTIONS ▪ Sika® Stabilizer-180 RCA ▪ Sika® Stabilizer-323 RCT APPLICATION ▪ Soluble bags are added to the fresh conc
Slide 27: Data Centers, Semiconductor Plants with Longer Lifespan
DATA CENTERS, SEMICONDUCTOR PLANTS WITH LONGER LIFESPAN MANY DATA CENTERS TO BE BUILT IN THE COMING YEARS Sika solutions can contribute to savings of 13,000 tons CO2eq throughout the lifetime of a 25,000m2 data center 27
Slide 28: Digital Solutions Support Longer Lifespan
DIGITAL SOLUTIONS SUPPORT LONGER LIFESPAN ANTICIPATING CUSTOMER NEEDS ALONG THE VALUE CHAIN Digital Products Digital Monitoring & Repairing Digital Tools Built in sensors for lifelong performance tracking To observe an early deterioration To make processes more efficient 28
Slide 29: 4. Outlook 2024
4. OUTLOOK 2024 ® BUILDING TRUST By
Slide 30: Outlook 2024: Confirmation of 2028 Strategic Targets
OUTLOOK 2024 CONFIRMATION OF 2028 STRATEGIC TARGETS ▪ For 2024 Sika expects sales growth in local currencies of 6-9% Expected sales ▪ Over-proportional increase in EBITDA growth in LC of ▪ Confirmation of 2028 strategic targets for sustainable, profitable growth 6-9% 30
Slide 31: Thank You for Your Attention
THANK YOU FOR YOUR ATTENTION Bs BUILDING TRUST
Slide 32: 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