Sika Ag · SIX:SIKA

Sika — Shareholder Meeting (April 2019)

48 slides from Sika's shareholder meeting presentation, Apr 9, 2019

  1. Slide 1: Welcome to the Annual General Meeting of Sika AG

    WELCOME TO THE ANNUAL GENERAL MEETING OF SIKA AG APRIL 9, 2019

  2. Slide 2: Constitution

    CONSTITUTION ANNUAL GENERAL MEETING APRIL 9, 2019

  3. Slide 3: Vote Counters

    VOTE COUNTERS  Caroline Inauen (Lead)  Nicole Scherrer  Jessica Wildi  Daniela Krenn  Eveline Ulmann  Simone Daetwyler  Reto Schneider  Kathrin Reichenstein  Naemi Stühlinger  Margrit Zweifel  Patrycja Michalak  Fernando Perez  Beatrice Jenni  Sarah Schütz  Luzia Christen  Leigh-Ann

  4. Slide 4: Agenda

    AGENDA Strategy and Current Situation Dr. Paul Hälg, Chairman of the Board of Directors Global Business Thomas Hasler, Head Global Business and Industry Statutory Items Dr. Paul Hälg, Chairman of the Board of Directors Under Agenda Item 1: Paul Schuler, Chief Executive Officer 2018 Business Year, Fi

  5. Slide 5: Strategy and Current Situation

    STRATEGY AND CURRENT SITUATION DR. PAUL HÄLG CHAIRMAN OF THE BOARD

  6. Slide 6: Sika's Growth Model Delivers Continued Growth in Sales and Profit

    SIKA’S GROWTH MODEL DELIVERS CONTINUED GROWTH IN SALES AND PROFIT (FULL YEAR) NET NET SALES SALES EBIT in CHF mn, % growth in local currencies in CHF mn 13.6% 900 9.0% 5.5% 13.0% 6.2% 600 9.4% 5.3% 7,085.4 945.9 300 2012 2013 2014 2015 2016 2017 2018 2012 2013 2014 2015 2016 2017 2018 6

  7. Slide 7: Sika's Growth Model Delivers: Key Investments Since 2015

    SIKA’S GROWTH MODEL DELIVERS KEY INVESTMENTS SINCE 2015  - Successful Target Market concept Market Penetration  - Megatrends driving growth  - 302 new patents filed Innovation  - 20 Global Technology Centers Emerging Markets  - 37 new plants opened  - 11 new national subsidiaries Acquisitions

  8. Slide 8: Parex: Announcement of Sika's Largest Acquisition

    PAREX ANNOUNCEMENT OF SIKA’S LARGEST ACQUISITION 8

  9. Slide 9: Sika Will Act as Market Consolidator

    SIKA WILL ACT AS MARKET CONSOLIDATOR FRAGMENTATION OFFERS ACQUISITION OPPORTUNITIES CONSTRUCTION CHEMICAL MARKET 2018 > CHF 60 BILLION Sika Top 10 companies with a combined market share of 40% Other 9

  10. Slide 10: Megatrends Drive Our Growth

    MEGATRENDS DRIVE OUR GROWTH URBANIZATION, NEW VEHICLE DESIGN AND SUSTAINABILITY Increased safety, fire, Rising demand for high- New modular vehicle earthquake and quality performance concrete, manufacturing concepts requirements sealing and need fast, high-strength waterproofing bonding systems Sust

  11. Slide 11: Urbanization: Supertall Buildings on the Rise

    URBANIZATION SUPERTALL BUILDINGS ON THE RISE Projected +1,200% in 20 years. Sika solutions are the driving force of this trend. 11

  12. Slide 12: The Sika Spirit: Strong Corporate Culture

    THE SIKA SPIRIT STRONG CORPORATE CULTURE 12

  13. Slide 13: More Value, Less Impact

    MORE VALUE, LESS IMPACT PROGRESS ACCORDING TO GRI 4 MORE VALUE ECONOMIC PERFORMANCE SUSTAINABLE SOLUTIONS LOCAL COMMUNITIES/ SOCIETY TARGET: OPERATING PROFIT TARGET: ALL NEW PROJECTS TARGET: 5% MORE PROJECTS (EBIT) 14-16% OF NET SALES. ASSESSED FOR PER YEAR. SUSTAINABILITY. ENERGY WATER/WASTE OCCUPA

  14. Slide 14: Dividend per Share: Continuous Increase

    DIVIDEND PER SHARE CONTINUOUS INCREASE 2.50 2.00 1.50 1.00 0.50 13 14 15 16 17 18 in CHF, adapted 14

  15. Slide 15: Global Business: Global Reach, Local Presence

    GLOBAL BUSINESS GLOBAL REACH – LOCAL PRESENCE THOMAS HASLER HEAD GLOBAL BUSINESS AND INDUSTRY

  16. Slide 16: Global Business: Automotive Product Portfolio

    GLOBAL BUSINESS AUTOMOTIVE PRODUCT PORTFOLIO Acoustic systems Shell adhesives Application of adhesives Structural reinforcements Adhesives for add-on parts 16

  17. Slide 17: Global Business: Additional Applications

    GLOBAL BUSINESS ADDITIONAL APPLICATIONS Dielectric Application Household Appliances Renewable Energy - Wind Marine 17

  18. Slide 18: Global Business: Global Reach, Local Presence

    GLOBAL BUSINESS GLOBAL REACH, LOCAL PRESENCE

  19. Slide 19: New Global Business Segment

    NEW GLOBAL BUSINESS SEGMENT CAPTURING POTENTIAL OF GLOBAL CUSTOMERS Background  Tapping into potential of global OEM accounts in the automotive, transportation, and appliances sectors  Ideal coverage of supplier industry in heavily consolidated market segments such as wind, marine, and dielectric

  20. Slide 20: Megatrends in the Automotive Industry

    MEGATRENDS IN THE AUTOMOTIVE INDUSTRY: LIGHTWEIGHT CONSTRUCTION, ACOUSTICS, E-VEHICLES

  21. Slide 21: Megatrends in the Automotive Industry: Lightweight, Acoustic, E-Vehicle

    MEGATRENDS IN THE AUTOMOTIVE INDUSTRY: LIGHTWEIGHT, ACOUSTIC, E-VEHICLE SIKA STRUCTURAL ADHESIVES ENABLE LIGHTWEIGHT VEHICLE CONSTRUCTION FAIST AND SIKA COMBINED – A POWERHOUSE FOR ACOUSTIC SOLUTIONS SIKA HAS THE SOLUTIONS TO MEET THE CHALLENGES OF E-VEHICLE 21

  22. Slide 22: SikaPower Structural Adhesives: The Alternative to Welding

    SikaPower® STRUCTURAL ADHESIVES THE ALTERNATIVE TO WELDING SikaPower® structural adhesives are essential for the leightweight vehicle construction  Lightweight construction and multi- material design are megatrends in the automotive industry  Adhesive bonding is becoming the supreme joining techno

  23. Slide 23: Megatrend: Lightweight Vehicles, Multi-Material Design

    MEGATREND – LIGHTWEIGHT VEHICLES, MULTI-MATERIAL DESIGN FROM PREMIUM TO VOLUME SEGMENT APPLICATION HIGHLIGHT Multi-material bonding; steel – carbon – aluminum CHALLENGE High forces in bond lines due to different thermal expansion of metals and carbon SOLUTION Crash-resistant SikaPower® MBX adhesive,

  24. Slide 24: SikaPower Structural Adhesives: Accelerated Growth

    SikaPower® STRUCTURAL ADHESIVES ACCELERATED GROWTH THANKS TO STRUCTURAL TRENDS 2014 2015 2016 2017 2018 21% ANNUAL AVERAGE GROWTH 24

  25. Slide 25: Megatrend Acoustics

    MEGATREND ACOUSTICS COMFORT, E-MOBILITY, AUTONOMOUS DRIVING 1 1 Reduction of airborne noise SikaBaffle® 2 Damping of structure- borne noise 2 1 2 SikaDamp® 3 3 Airborne noise Structure-borne Reinforcement Structural noise reinforcement Sika +++++ ++ +++++ SikaReinforcer® Faist + +++++ +++ 25 ChemTec

  26. Slide 26: Megatrend Electric Vehicles: Battery and Electrical Components

    MEGATREND ELECTRIC VEHICLES INNOVATIONS FOR BATTERY AND ELECTRICAL COMPONENTS Source: BMW® AG Grouting materials for electric engines facilitate superior design and performance  Smaller, lighter engines  Extended life cycles  Enhanced engine performance Thermally conductive materials protect batt

  27. Slide 27: Megatrend Electric Vehicles: Established Applications and New Opportunities

    MEGATREND – ELECTRIC VEHICLES ESTABLISHED SIKA APPLICATIONS AND NEW OPPORTUNITIES ELECTRICAL VEHICLES HAVE 20% HIGHER SALES POTENTIAL E-platforms require lightweight construction  Unique bodywork structures require refined reinforcement solutions to guarantee   crash resilience Comprehensive acou

  28. Slide 28: Outlook

    OUTLOOK BUILDING TRUST Bs

  29. Slide 29: Growth Dynamism: Increase in Sales per Vehicle

    GROWTH DYNAMISM INCREASE IN SALES PER VEHICLE AVERAGE SALES PER VEHICLE VW GOLF 7, E-GOLF DODGE RAM 1500 CONTENT: > CHF 40 CONTENT: > CHF 30 TESLA MODELS X, S AUDI A3, A4, A5 10.68 9.79 CONTENT: > CHF 70 CONTENT: > CHF 40 8.89 8.06 JAGUAR F-PACE MERCEDES S-CLASS 7.28 CONTENT: > CHF 100 CONTENT: > CH

  30. Slide 30: Outlook Global Business

    OUTLOOK GLOBAL BUSINESS  Volatile market conditions (“trade war”, Brexit, Diesel-Gate)  High project status (planning and execution)  Significant increase in development of full electric and hybrid vehicles (car, bus, and truck) Global car production in mn  Additional strong growth potential dri

  31. Slide 31: 2018 Business Year

    2018 BUSINESS YEAR PAUL SCHULER CHIEF EXECUTIVE OFFICER

  32. Slide 32: Highlights 2018

    HIGHLIGHTS 2018 1. Record results  Sales growth of 13.6% in local currencies to CHF 7.09 billion in 2018  CHF 945.9 million EBIT (+5.5%)  CHF 687.1 million net profit (+5.9%) 2. Key investments  1 new national subsidiary  11 new factories  4 acquisitions 32

  33. Slide 33: Strong Growth Momentum Continued in 2018

    STRONG GROWTH MOMENTUM CONTINUED IN 2018 + 13.6% 13.6% SALES GROWTH IN LOCAL CURRENCY (13.4% IN CHF) 7,085 + 14.1% + 5.5% + 11.7% Group + 29.2% 1,177 1,821 3,167 Americas 920 Asia/Pacific Global Business EMEA 12M 2017 12M 2018 (in CHF mn, growth in LC) 33

  34. Slide 34: High Operating Speed Continued in 2018: Investments in New Plants

    HIGH OPERATING SPEED CONTINUED IN 2018 INVESTMENTS IN NEW PLANTS Opening of Sika plants:  New mortar plant Vietnam (Hanoi, March 2018)  1st admixture plant Senegal (Dakar, April 2018)  New admixture factory Saudi Arabia (Dammam, June 2018)  New admixture and mortar plant Azerbaijan (Baku, July 2

  35. Slide 35: Expansion in Emerging Markets

    HIGH OPERATING SPEED CONTINUED IN 2018 EXPANSION IN EMERGING MARKETS New subsidiary:  Honduras (February 2018) Now present in 101 countries with own national subsidiaries 35

  36. Slide 36: Closing of 4 Acquisitions in 2018

    HIGH OPERATING SPEED CONTINUED IN 2018 CLOSING OF 4 ACQUISITIONS IN 2018 Company Country Target Market Faist ChemTec Global Global Business Index Construction Systems and Products Italy Roofing, Waterproofing Polypag Switzerland Sealing & Bonding Fibermesh Concrete Fibers Global Concrete Total annua

  37. Slide 37: First Quarter 2019 and Outlook

    FIRST QUARTER 2019 AND OUTLOOK

  38. Slide 38: Highlights Q1 2019

    HIGHLIGHTS Q1 2019 1. Strong start to 2019  +7.1% sales growth in local currencies to CHF 1,644.8 million  Growth in all regions 2. Key investments  Announcement of three acquisitions: Parex (global), King (Canada), Belineco (Belarus)  New mortar plant in Senegal 38

  39. Slide 39: Growth Momentum Continues in 2019

    GROWTH MOMENTUM CONTINUES IN 2019 7.1% SALES GROWTH IN LOCAL CURRENCY (5.8% IN CHF) + 7.1% + 8.2% + 2.8% 1.64 + 4.8% Group + 13.3% 0.27 0.41 Asia/Pacific Americas 0.72 0.24 EMEA Global Business 3M 2018 3M 2019 (in CHF bn, growth in LC) 39

  40. Slide 40: Growth Momentum Continues in 2019: Organic and Acquisition Growth

    GROWTH MOMENTUM CONTINUES IN 2019 7.1% SALES GROWTH IN LOCAL CURRENCY (5.8% IN CHF) 7.1% +4.6% organic +2.5% acquisition Q1 2017 Q1 2018 Q1 2019 in CHF mn Sales 1,389.0 1,554.0 1,644.8 40

  41. Slide 41: Update on Parex

    UPDATE ON PAREX ® BUILDING TRUST Ds

  42. Slide 42: Parex: A Leading Mortar Manufacturer

    PAREX – A LEADING MORTAR MANUFACTURER 80% OF SALES THROUGH DISTRIBUTION CHANNEL Sales CHF 1,204 million EBITDA CHF 195 million Waterproofing & Tech. Solutions 26% Tile Setting Sales by products Materials 40% Facade Protection & Decoration 34% Americas 25% Asia Sales by region 42% EMEA 33% Sites 74 p

  43. Slide 43: Update on Parex - Example China

    UPDATE ON PAREX - EXAMPLE CHINA HIGH CHANNEL COMPLEMENTARITY AND CROSS-SELLING POTENTIAL Parex strong in distribution, Sika strong in direct business Expanded footprint in China  Technical mortars  Sika with 90% of direct business in China  Industrial Flooring  High complementarity in distributi

  44. Slide 44: Update on Parex - Example USA

    UPDATE ON PAREX - EXAMPLE USA FACADE AND TILE SYSTEMS AS NEW GROWTH PLATFORMS  Refurbishment  Expand factory footprint for mortars with Parex plants in  Industrial Flooring Florida, California, New York, and New Mexico  Roofing & Waterproofing  Parex’s Facade/EIFS business connects well with Si

  45. Slide 45: Update on Parex: Expand Highly Profitable Mortar Business

    UPDATE ON PAREX EXPAND HIGHLY PROFITABLE MORTAR BUSINESS Combined Adhesive Systems Thermoplastic Adhesive 23% Systems Systems Concrete 28% 26% Systems 14% CHF 7.1 bn CHF CHF1.1bn 1.2 bn CHF 8.3 bn Coating Systems Coating Concrete Thermoplastic 12% Systems Systems Systems 14% 17% 24% Mortars Mortars

  46. Slide 46: Acquisition of Parex: Mortars Fastest Growing Segment

    ACQUISITION OF PAREX MORTARS: FASTEST GROWING SEGMENT WITH HIGH MARGINS 2.5 2.0 1.2 1.5 1.0 0.5 1.1 0.9 0.5 0.0 2011 2015 2019 2018 Sika Parex 46

  47. Slide 47: Acquisition of Parex: 1+1=3

    ACQUISITION OF PAREX 1+1=3  Growth platform  Sale of Sika products via distribution channels of Parex  Direct sale of Parex facade systems via Sika in all countries  More than 2,000 additional sales people in the market Sales 2018 incl. Parex  Improvement of margin  Purchase – amount and price

  48. Slide 48: Strong Outlook 2019

    STRONG OUTLOOK 2019 CONTINUATION OF SUCCESSFUL GROWTH STRATEGY  6 to 8% sales growth in local currencies (with over-proportional profit increase)  With initial consolidation of Parex in the second quarter: sales target expected to exceed CHF 8 billion  Opening of seven to nine new factories  Str

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