Media Releases 2019

Sika has commenced operations at its third plant in Indonesia in a step which saw it align local production capacities with the strong demand for building materials. The new plant is in Bekasi, which is to the east of the capital city Jakarta. Two existing Sika plants were already supplying concrete admixtures and mortar products to the Indonesian construction market.

Sika has agreed to acquire Adeplast SA, a major manufacturer of mortars and thermal insulation solutions in Romania. The acquisition will significantly strengthen Sika’s position in the local construction chemicals market and extend its manufacturing footprint. Adeplast generates sales of CHF 120 million with a workforce of 460 employees. The transaction is subject to clearance by anti-trust authorities.

Sika has won the Swiss Technology Award 2019 in the "Innovation Leaders" category. It received the award for its new, high-performance adhesive technology used in lightweight construction in the field of transportation. The prize was awarded on November 21, at the Swiss Innovation Forum in Basel in the presence of 1,000 decision-makers in business, politics, science and the media.

Sika is starting the operations of a new mortar plant at its existing site in Addis Ababa, Ethiopia, thus expanding its portfolio of locally manufactured products. After building a production facility for concrete admixtures in 2016, this is a further step in extending the presence in the promising Ethiopian construction market.

▪ Sales growth of 15.1% in local currencies to over CHF 6 billion (+12.9% in CHF)
▪ Growth in all regions
▪ Organic growth of 4.1%
▪ Strong operating profit growth (EBITDA +18.2%, EBIT +10.6%)
▪ Strong cash-flow generation, operating free cash-flow of CHF 555.1 million
▪ Boost to growth thanks to acquisition of Parex as well as of Crevo-Hengxin, King Packaged Materials and Belineco
▪ Opening of five new factories
▪ Outlook: sales of over CHF 8 billion and double-digit EBIT growth for 2019
▪ New Strategy 2023 will ensure Sika’s success in the upcoming years

At the 2019 Sika Capital Markets Day being held in Zurich today, CEO Paul Schuler presents the new Strategy 2023, which builds on the current successful growth model. This will set the course for an even stronger performance. In addition to a rise in the long-term EBIT target to 15-18%, the main new elements of Strategy 2023 are the introduction of a new Target Market, “Building Finishing”, a focus on operational efficiency, and a targeted, Group-wide emphasis on environmentally friendly products and sustainability.

Sika has agreed to acquire Crevo-Hengxin, a Chinese manufacturer of silicone sealants and adhesives used in both industry and construction applications. With this takeover, Sika is expanding its Target Markets Industry and Sealing & Bonding presence in China and the Asia Pacific region, and is gaining additional silicone technology plus a production footprint. Crevo- Hengxin generates sales of CHF 50 million, with a workforce of 140 employees.

Sika is further expanding its presence in West Africa and starting operations in a new facility for mortars in Cameroon. Following the foundation of the national subsidiary in 2016 and the opening of a concrete admixture plant in 2017, the company is now investing in a new mortar manufacturing facility. In total, Sika has 22 factories on the high-growth African continent. The current business year has already seen investments in new facilities in Egypt and Senegal.

▪ Sales growth of 9.6% in local currencies to CHF 3,732.4 million (+7.6% in CHF)
▪ Growth in all regions
▪ Higher gross result – EBIT increase of 8.3%
▪ Conclusion of Parex acquisition provides boost to growth, takeover of King Packaged Materials in Canada and Belineco in Belarus
▪ Opening of three new factories
▪ Outlook: sales of over CHF 8 billion and double-digit EBIT growth for 2019

Sika is expanding its production capacities in Southeast Europe by bringing a further mortar facility as well as a warehouse for raw materials and end-products on stream at its Simanovci site in Serbia. The plant, which is located near Belgrade, has been continuously expanded in recent years to keep pace with the dynamic development experienced by the region’s construction sector and strong Sika growth.