Media Releases 2022

Sika is opening a new plant for liquid membranes and mortar production in Chongqing, a city in southwestern China with 30 million inhabitants. By commissioning the new plant, Sika is expanding its position in this rapidly growing metropolitan area, which is set to become even more important as China is creating the Chengdu-Chongqing business district with almost 100 million inhabitants.

Sika today successfully placed a bond with a total amount of CHF 600 million through a triple tranche. The payment date of the bonds is November 28, 2022. The bonds were placed under the lead management of UBS, Credit Suisse, and Zürcher Kantonalbank. They will be listed on the SIX Swiss Exchange. The net proceeds of the transaction will be used for the financing of the acquisition of the MBCC Group and for general corporate purposes to support the growth strategy of Sika.

Ad hoc announcement pursuant to Art. 53 LR

▪ Sales at CHF 7,998.5 million (+16.6% in CHF)
▪ Sales up by 18.5% in local currencies
▪ Operating profit (EBIT): CHF 1,231.5 million (+16.8%)
▪ Acquisition of Sable Marco (Canada) and UGL (USA)
▪ New plants opened in Tanzania, Ivory Coast, Bolivia, and in the USA

Outlook for 2022 fiscal year confirmed:
▪ Sales increase in local currencies of over 15%, surpassing CHF 10 billion for the first time
▪ Over-proportional increase in EBIT expected
▪ Confirmation of 2023 strategic targets for sustainable, profitable growth
▪ Closing of MBCC acquisition targeted for first half of 2023

The motto of Sika Capital Markets Day 2022, which takes place in Zurich today, is “Our Path to Net Zero”. Sika’s management team outlines the strategy that allows the company to maintain a high level of growth while achieving its net zero targets by 2050. In a presentation delivered to a 200-plus audience, CEO Thomas Hasler confirms the strategic attractiveness of the MBCC acquisition, and revises growth expectations upward for 2022.

The UK Competition and Markets Authority (CMA) has decided to conduct an in-depth examination in the UK market related to Sika’s planned acquisition of MBCC Group. Closing is now targeted for the first half of 2023. The adapted timeline will not impact the strategic attractiveness of the transaction. Guidance for the expected annual synergies remains at CHF 160 – 180 million.

Ad hoc announcement pursuant to Art. 53 LR

▪ First-half sales at CHF 5,250.3 million (+18.0% in CHF)
▪ Sales up by 19.5% in local currencies
▪ Operating profit (EBIT) at CHF 841.9 million (+22.7%)
▪ Record EBIT margin of 16.0%
▪ Acquisition of Sable Marco (Canada) and UGL (USA)
▪ New plants opened in Tanzania, Ivory Coast, Bolivia, and USA

Outlook for 2022 fiscal year confirmed
▪ Sales increase in local currencies by well over 10%, surpassing CHF 10 billion for the first time
▪ Over-proportional increase in EBIT expected
▪ Confirmation of 2023 strategic targets for sustainable, profitable growth
▪ Closing of MBCC acquisition is targeted for the end of 2022

Sika is bringing a new manufacturing plant for concrete admixtures on stream in Stafford, Virginia. With the opening of the plant near Washington D.C., Sika is increasing its production capacity in the important American construction market so that it can readily satisfy the strong demand in the Northeast and Mid-Atlantic regions. With over 75 million inhabitants, the urban centers in the Northeast, like New York, Philadelphia, or Boston, are very densely populated and account for more than 25% of US economic output. The new plant is well positioned to support the additional needs of the announced infrastructure program of CHF 200-250 billion in the aforementioned two regions.

Sika has acquired United Gilsonite Laboratories (UGL) in the United States, a well recognized manufacturer of products for consumer and DIY waterproofing applications. Their product portfolio is sold through the distribution channel and can be found in major retailers in the USA. The acquired business is a perfect complement to Sika’s high value-added systems for concrete and masonry waterproofing and refurbishment. In 2021, UGL generated sales of CHF 65 million.

Sika has opened a new plant in Santa Cruz de la Sierra, thus doubling its production capacity for mortar and concrete admixtures in Bolivia. With this new facility in one of the country’s main industrial agglomerations, Sika is positioning itself for continued growth in the dynamic Bolivian construction market.

Sika has agreed to sell Aliva Equipment, a Swiss unit supplying machines for the application of shotcrete, to Normet Group Oy, a Finnish global company providing solutions for underground construction. In 2021, Aliva Equipment generated sales of CHF 12 million.