Media Releases 2019

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 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 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 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 reach CHF 7,085.4 million (+13.6% in local currencies)
▪ Operating profit (EBIT) increased to CHF 945.9 million (+5.5%)
▪ Net profit up 5.9% to CHF 687.1 million
▪ Growth in all regions
▪ 11 factories opened, 1 national subsidiary established, 4 acquisitions
▪ Dividend increase of 10.8% proposed
▪ Strategic targets for 2020 confirmed

Sika continued its success story in the 2018 financial year with record figures. Sales in local currencies increased by 13.6% to CHF 7,085.4 million. Operating profit (EBIT) rose by 5.5% to CHF 945.9 million (previous year: CHF 896.3 million), while net profit grew by 5.9% to CHF 687.1 million (previous year: CHF 649.0 million). The 16 strategic investments made during the year under review will continue to drive future growth. The Board of Directors is proposing to the 2019 Annual General Meeting a dividend increase of 10.8%. The strategic goals for 2020 were confirmed.

▪ Sales growth of 13.7% in local currencies to CHF 7.09 billion in 2018
▪ Strong growth in all regions
▪ Continued investment in supply chain expansion with opening of 11 factories, 1 national subsidiary, and 4 acquisitions
▪ Outlook 2019: in line with the strategic targets, sales growth of 6-8% and over-proportional profit increase are expected

▪ Sales growth of 7.1% in local currencies to CHF 1,644.8 million (+5.8% in CHF)
▪ Growth in all regions
▪ Start-up of new mortar factory in Senegal
▪ Announced acquisition of three companies: Parex, global, King Packaged Materials, Canada, and Belineco, Belarus
▪ Confirmation of outlook with sales target of at least CHF 8 billion in 2019

▪ Sika made binding offer to acquire Parex from CVC Fund V
▪ Parex, a leading mortar manufacturer with sales of CHF 1.2 billion and an impressive track record of profitable growth and attractive margins (EBITDA: 16% margin)
▪ Strong footprint with 74 plants in 23 countries
▪ Combining two “growth engines”, highly complementary in product offering and channel penetration
▪ Enterprise value of CHF 2.5 billion with expected annual synergies of CHF 80 – 100 million
▪ Completion of transaction subject to French works council consultation process and regulatory approvals, expected in Q2/Q3 2019

Sika is starting operations at a plant in Doha, Qatar, for the production of concrete admixtures. The country on the east coast of the Arabian peninsula is an attractive market thanks to large-scale infrastructure investment and a number of mega projects, both ongoing and planned.

▪ 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