Slide 1: Strong start to the year – record sales and high double-digit growth in the first quarter
STRONG START TO THE YEAR – RECORD SALES AND HIGH DOUBLE-DIGIT GROWTH IN THE FIRST QUARTER SIKA INVESTOR PRESENTATION MAY 2024
Slide 2: Agenda
1. HIGHLIGHTS Q1 2024 2. SUCCESSFUL MBCC ACQUISITION 3. PROFITABLE GROWTH STRATEGY 2028 4. MARKET PENETRATION GROWTH 5. OUTLOOK
Slide 3: Agenda
1. HIGHLIGHTS Q1 2024 2. SUCCESSFUL MBCC ACQUISITION 3. PROFITABLE GROWTH STRATEGY 2028 4. MARKET PENETRATION GROWTH 5. OUTLOOK
Slide 4: Highlights Q1 2024 – Strong start to the year
HIGHLIGHTS Q1 2024 STRONG START TO THE YEAR High, double-digit growth of +20.1% in local currencies Q1 sales of CHF 2,648.0 million (+13.8% in CHF) Acquisition effect of 19.9% Negative currency effect of –6.3% Acquisition of Kwik Bond in the USA Outlook for fiscal 2024 confirmed o Sales
Slide 5: Sika with strong start to the year – record sales and double-digit growth in Q1
SIKA WITH STRONG START TO THE YEAR RECORD SALES AND DOUBLE-DIGIT GROWTH IN Q1 +21.1 % +22.4 % +14.1 % +20.1 % 0.90 1.21 0.53 2.65 AMERICAS EMEA Asia/Pacific GROUP Q1 2023 Q1 2024 (in CHF billion, growth in LC) 5
Slide 6: Record sales and double-digit growth in all regions
SIKA WITH STRONG START TO THE YEAR RECORD SALES AND DOUBLE-DIGIT GROWTH IN ALL REGIONS +16.8% +16.6% +3.7% Growth in CHF +22.4% +21.1% +14.1% Growth in LC -5.6% -4.5% -10.4% FX impact +22.2% +20.7% +14.1% Acquisition 16% 84% Construction Automotive and Industry EMEA Americas Asia/Pacific 6
Slide 7: Continuous investments in future growth
CONTINUOUS INVESTMENTS IN FUTURE GROWTH KEY INVESTMENTS IN 2024 Sika has acquired Kwik Bond Polymers, a manufacturer of polymer systems for the refurbishment of concrete infrastructure and bridges in the United States (April 2024) 7
Slide 8: Highlights 2023 – Balanced business mix, global footprint in vertical markets
HIGHLIGHTS 2023 – BALANCED BUSINESS MIX GLOBAL FOOTPRINT IN VERTICAL MARKETS 20% 30% RESIDENTIAL INFRASTRUCTURE 35% 15% COMMERCIAL AUTOMOTIVE & INDUSTRY 8
Slide 9: Highlights 2023 – Balanced business mix, global footprint
HIGHLIGHTS 2023 – BALANCED BUSINESS MIX GLOBAL FOOTPRINT EMERGING MARKETS 41% 59% REFURBISHMENT MATURE MARKETS 45% 55% NEW BUILD 9
Slide 10: Strong topline development over the years with over-proportional profitability growth
STRONG TOPLINE DEVELOPMENT OVER THE YEARS WITH OVER-PROPORTIONAL PROFITABILITY GROWTH Net sales +9.7% in CHF +14.5% EBIT 1.8 +12.2% in CHF CAGR +15.8% +3.4% CAGR 15.0% 1.6 10 14.2% +17.1% 15.0% 1.4 +16.3% +3.4% 8 14.4% 1.2 11.2 1.7 13.4% 13.0% 1.0 6 0.8 4 0.6 2018 2019 2020 2021 2022 2023 2018 2019
Slide 11: Sika gaining market share over the years, outgrowing the peers
SIKA GAINING MARKET SHARE OVER THE YEARS OUTGROWING THE PEERS 17.1% 15.8% 19% 16% 2.0% 14.5% 14% 14% 2.7% 12% 3.4% 10% 9% 8% 15.1% 13.3% 6% 12.7% 13.1% 13.2% in LC 7.2% 4% 4% 2% acquisition 0% 1.2% -3.8% -3.5% -1% organic -2% -3.9% peer growth (organic) -4% -6% -6% in CHF bn 2020 2020 2021 2021 2022
Slide 12: Agenda
1. HIGHLIGHTS Q1 2024 2. SUCCESSFUL MBCC ACQUISITION 3. PROFITABLE GROWTH STRATEGY 2028 4. MARKET PENETRATION GROWTH 5. OUTLOOK
Slide 13: Successful integration of MBCC acquisition – Stronger together as One Sika
SUCCESSFUL INTEGRATION OF MBCC ACQUISITION STRONGER TOGETHER AS ONE SIKA 6,000 additional employees ONE CHF 2.1 bn additional sales SIKA STRONG product portfolio 13
Slide 14: Synergy target raised to CHF 180–200 million p.a. by 2026
SUCCESSFUL INTEGRATION OF MBCC ACQUISITION SYNERGY TARGET RAISED TO CHF 180–200 MILLION P.A. BY 2026 180 to 200 140 to 160 80 to 100 41 2023 2024 2025 2026 (in CHF million) 14
Slide 15: Agenda
1. HIGHLIGHTS Q1 2024 2. SUCCESSFUL MBCC ACQUISITION 3. PROFITABLE GROWTH STRATEGY 2028 4. MARKET PENETRATION GROWTH 5. OUTLOOK
Slide 16: Strategy 2028 – Beyond the expected, profitable growth to continue
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 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 value creation 16 Note: Historical Sales represent actual CHF values, growth figures in LC
Slide 17: 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 18: 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 18
Slide 19: 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 20: Agenda
1. HIGHLIGHTS Q1 2024 2. SUCCESSFUL MBCC ACQUISITION 3. PROFITABLE GROWTH STRATEGY 2028 4. MARKET PENETRATION GROWTH 5. OUTLOOK
Slide 21: 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 21
Slide 22: Strategy 2028 – Our five key geographic markets
STRATEGY 2028 OUR FIVE KEY GEOGRAPHIC MARKETS EUROPE USA JAPAN CHINA INDIA Our five key geographic markets cover 75% of total addressable market 22
Slide 23: Key geographic market – USA
KEY GEOGRAPHIC MARKET – USA RESHORING, SAMSUNG SEMICONDUCTOR PLANT, TEXAS, USA 557,000 m plant 2 the first of ten phases of expansion 228,000 m 2 electrostatic discharge flooring Synergetic approach and a strong cross-selling Sika delivered strategy high-performance Waterproofing solutions solutions
Slide 24: Key geographic market – Japan
KEY GEOGRAPHIC MARKET – JAPAN ALL BUILDINGS ABOVE 187 M IN TOKYO BUILT WITH SIKA SOLUTIONS Earthquake safety: Sika’s solutions used for ALL skyscrapers’ constructions in Tokyo 53 completed buildings taller than 187 m 10 buildings currently under construction 24
Slide 25: Urbanization – Azabudai Hills – Redefining Tokyo's landscape
URBANIZATION – INFRASTRUCTURE DENSIFICATION AZABUDAI HILLS – REDEFINING TOKYO'S LANDSCAPE Accommodating 20,000 employees 3,500 residents 30 million visitors a year Enhanced concrete workability with Sika’s superplasticizers for high altitudes pumping Sika’s admixtures for state-of-the-art earthquake
Slide 26: Key geographic market – India
KEY GEOGRAPHIC MARKET – INDIA DYNAMIC AND PROFITABLE GROWTH Construction market size Investments in CHF 600 billion transportation to expand at 6% and CAGR infrastructure throughout 2026 Sika leading the transition from High potential in site-mixed to the retail pre-mixed business mortars 26
Slide 27: Population growth – Mumbai-Ahmedabad high-speed rail, India
POPULATION GROWTH – INCREASING URBAN CONNECTIVITY MUMBAI-AHMEDABAD HIGH-SPEED RAIL, INDIA 508 km India’s first high-speed railway link from Mumbai to Ahmedabad Sika-MBCC’s dedicated project and technical service team supporting in key locations Sika’s concrete admixtures for 13 million m concrete 3
Slide 28: Population growth – Koysha hydropower plant, Ethiopia
POPULATION GROWTH – HYDROPOWER KOYSHA HYDROPOWER PLANT, ETHIOPIA 180 meter high water dam generating 6,460 MWh of electricity, offsetting one million tons (Mt) of CO2 annually Sika’s concrete admixtures for 7 million m concrete 3 Locally produced admixures and mortar products creating a simplified s
Slide 29: Urbanization – Waterproofing an icon: Battersea Power Station
URBANIZATION – REPAIR AND REFURBISHMENT WATERPROOFING AN ICON: BATTERSEA POWER STATION, LONDON 30,000 m 3 of watertight concrete for the basement 375 tons of flowable repair mortar for the ground floor slabs 125 tons of repair mortar to seal the enormous columns and beams 29
Slide 30: Growth driver – Construction chemicals market, strong penetration increase
GROWTH DRIVER – CONSTRUCTION CHEMICALS MARKET STRONG PENETRATION INCREASE Construction chemicals penetration (1991 = 100) 600 500 400 Strong growth 300 opportunities 200 100 2x penetration increase 2.5–4.0x penetration increase 0 1990 2000 2010 2020 2030 2040 2050 Source: IHS, Freedonia 30 1) penetr
Slide 31: Agenda
1. HIGHLIGHTS 2023 2. SUCCESSFUL MBCC ACQUISITION 3. PROFITABLE GROWTH STRATEGY 2028 4. MARKET PENETRATION GROWTH 5. OUTLOOK
Slide 32: 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% 32
Slide 33: Thank you for your attention
THANK YOU FOR YOUR ATTENTION Bs BUILDING TRUST