HALF-YEAR RESULTS 2014
AND STRATEGY 2018
SIKA PRESENTATION JULY 2014
1. HIGHLIGHTS AND RESULTS HALF-YEAR 2014
HIGHLIGHTS HALF-YEAR 2014
 Strategy 2018 well on track
 18.1% sales growth (10.6% in CHF) to CHF 2,656.9 million
 High growth dynamic in all regions
 Sales up 18.1% in emerging markets
 25.7% increase in net profit to CHF 177.6 million
 3 new factories in Brazil, Indonesia, and India
 3 acquisitions with CHF 53 million in sales
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KEY FIGURES HALF-YEAR 2014
HIGH SALES GROWTH – ABOVE-AVERAGE INCREASE
IN PROFIT
2013
2014
Δ%
2,402.5
2,656.9
+10.6%
53.2
53.3
EBITDA
293.4
347.7
+18.5%
EBIT
220.2
266.4
+21.0%
Net profit
141.3
177.6
+25.7%
Operating free cash flow
15.3
36.6
ROCE in %
18.0
20.9
in CHF mn
Net sales
Gross results as % of net sales
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GROWTH MOMENTUM CONTINUES HALF-YEAR 2014
18.1% SALES GROWTH (10.6% IN CHF)
+ 21.7%
,
+ 6.5%
+18.1%
335
North America
485
+ 16.8%
1,336
Asia/Pacific
EMEA
296
Latin America
HY 1 / 2013 HY 1 / 2014
(in CHF mn, growth at
constant exchange rates)
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Growth of 18.1% in Emerging Markets
ACCELERATED BUILD-UP OF EMERGING MARKETS
INVESTMENTS IN HALF-YEAR 2014
Opening of Sika plant:
 7th plant in Brazil
 2nd plant in Indonesia
 6th plant in India
India
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(Aparecida de Goiânia, January 2014)
(Surabaya, May 2014)
(Jhagadia, June 2014)
Brazil
LEADING ROLE IN MARKET CONSOLIDATION
ACQUISITIONS HALF-YEAR 2014
Company
Country
Target Market
Klebag Chemie AG
Switzerland
Sealing & Bonding,
Flooring
Company for flooring and coating
products
South Korea
Flooring
Lwart Química Ltda.
Brazil
Waterproofing,
Roofing
Total sales: CHF 53 million
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2. PERFORMANCE HALF-YEAR 2014
PROFIT & LOSS HALF-YEAR 2014
STRONG IMPROVEMENT OF KEY FINANCIALS
2013
NS
2014
NS
Growth
Net sales
2,402.5
100 %
2,656.9
100 %
+ 10.6%
Gross results
1,277.4
53.2 %
1,417.4
53.3 %
+ 11.0%
Personnel cost
-523.4 -21.8 %
-550.6
-20.7 %
+ 5.2%
Other OPEX
-460.6 -19.2 %
-519.1
-19.5 %
+ 12.7%
in CHF mn
Depreciation
-73.2
-3.0 %
-81.3
-3.1 %
+ 11.1%
EBIT
220.2
9.2 %
266.4
10.0 %
+ 21.0%
6.7 %
+ 25.7%
Financial expense
-23.8
-18.3
Income taxes
-55.1
-70.5
Net profit
Tax rate
Non-material cost
9
141.3
5.9 %
177.6
28.1 %
-1,057.2 -44.0 %
28.4 %
-1,151.0
-43.3 %
+ 8.9%
SALES HALF-YEAR 2014
NEGATIVE CURRENCY IMPACT OF 7.5%
2013
2014
Δ
%
2,402.5
2,656.9
+ 254.4
+10.6
Organic growth
+ 237.5
+9.9
Acquisition effect
+ 197.0
+8.2
Currency effect
- 180.1
-7.5
in CHF mn
Net sales
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SALES GROWTH BY QUARTER
CONTINUED GROWTH MOMENTUM
23.3%
17.8%
Net sales 12 month rolling
9.2%
14.0%
10.6%
9.6%
3.3%
7.0%
7.3%
8.2%
Q1 PY
Q2 PY
Q3 PY
Q4 PY
Q1 CY
Q2 CY
1,043.1
1,359.4
1,405.2
1,334.5
1,206.2
1,450.7
at constant FX
acquisition
organic
14.1%
6.6%
-0.2%
+1.1%
-1.3%
in CHF mn
Quarterly
sales
11
7.4%
8.2%
1.2%
SALES HALF-YEAR 2014
GROWTH IN ALL REGIONS
+ 21.7 %
+ 6.5 %
+ 18.1 %
+ 16.8 %
Growth (at constant FX)
- 3.3 %
- 6.5 %
- 11.6 %
- 19.2 %
FX impact
+ 14.7 %
+ 0.0 %
+ 4.0 %
+ 4.1 %
Acquisition
20%
80%
Construction
Industry
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1,336
355
EMEA
North
America
485
296
Asia/Pacific Latin America
GROSS RESULT DEVELOPMENT
STABLE GROSS RESULT
2009
2010
2011
2012
2013
2014 Jun
(YTD)
55.1 %
53.9 %
50.5 %
52.2 %
52.4 %
53.3 %
Gross result (trailing 12 months)
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CONSOLIDATED BALANCE SHEET JUNE 2014
31.12.2013
30.06.2014
Δ
Cash and cash equivalents
1,028.3
526.8
- 501.5
Other current assets
1,559.6
1,862.3
+ 302.7
Current assets
2,587.9
2,389.1
- 198.8
Non-current assets
2,144.1
2,194.3
+ 50.2
Total assets
4,732.0
4,583.4
- 148.6
Current liabilities
1,189.1
997.6
- 191.5
Non-current liabilities
1,406.7
1,438.7
+ 32.0
Equity incl. minorities
2,136.2
2,147.1
+ 10.9
Total liabilities and equity
4,732.0
4,583.4
- 148.6
in CHF mn
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FIVE-YEAR OVERVIEW (HALF-YEAR FIGURES)
NET SALES
+ 10.6%
in CHF mn
2'657
2'403
2'311
2'235
2'094
2010
15
2011
2012
2013
2014
FIVE-YEAR OVERVIEW (HALF-YEAR FIGURES)
EBIT
in CHF mn
+ 21.0%
266
220
217
198
178
2010
16
2011
2012
2013
2014
FIVE YEAR OVERVIEW (HALF-YEAR FIGURES)
NET PROFIT
in CHF mn
+ 25.7%
178
151
141
125
114
2010
17
2011
2012
2013
2014
3. STRATEGY 2018
ATTRACTIVE INDUSTRY AND MARKETS
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ATTRACTIVE INDUSTRY AND MARKETS
SIGNIFICANT GROWTH POTENTIAL
Market Volume 2013
CHF 60 billion
Market Volume 2018*
> CHF 70 billion
Industry
Industry
Concrete
Waterproofing
Refurbishment
Sealing &
Bonding
Waterproofing
Refurbishment
Roofing
Flooring
*3% annual market growth expected
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Concrete
Roofing
Sealing &
Bonding
Flooring
GROWING DEMAND FOR SIKA PRODUCTS
URBANIZATION AND MEGACITIES
 Increasing world population fuels construction markets
 Higher demand for performance / specialty concrete
 More waterproofing solutions needed
 Functional sealing and building envelopes
 Innovative roofing solutions
 Increased safety, fire, water,
earthquake and quality
requirements
 High demand for infrastructure
 Increasing demand for
refurbishment & repair solutions
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GROWING DEMAND FOR SIKA PRODUCTS
TREND FOR LIGHTER, SAFER VEHICLES
 New materials like carbon fiber
require bonding solutions
 Composite body structures need
bonding instead of welding
 Adhesives enable stiffer, lighter, safer
metal structures
 Modular production concepts are
based on fast, high strength bonding
systems
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GROWING DEMAND FOR SIKA PRODUCTS
TREND FOR SUSTAINABILITY
 More efficient use of limited natural
resources and energy («green cities»)
 Demand for longer life cycles of
infrastructure and buildings
 Demand for low-energy housing
 Drive towards higher recyclability of
materials
 Demand for safe-to-use products,
lower-emission products
 New technologies for vehicles and
transportation
 Increasing environmental regulations
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FRAGMENTED GLOBAL INDUSTRY OFFERS
SIGNIFICANT GROWTH POTENTIAL
Construction Chemical Market 2013
> CHF 50 billion
Sika
Competitor 1
Competitor 2
Competitor 3
Competitor 4
Others
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Top 5 companies
with 26%
market share
SIKA’S POSITION & COMPETITIVE
ADVANTAGES
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FOCUS ON 7 TARGET MARKETS
With our core competencies bonding, sealing, damping,
reinforcing and protecting
Waterproofing
Roofing
Sealing & Bonding Refurbishment
Industry
Concrete
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Flooring
STRONG GLOBAL POSITION: COMPETITIVE
ADVANTAGES FOR PROFITABLE GROWTH
 World market leader in construction chemicals
 Leading adhesive producer for industrial markets
 Successful focus on innovation (73 patents in 2013)
 First mover in emerging markets (38% of sales)
 Global footprint with over 160 factories worldwide

Leading global brand
 Entrepreneurial company
culture
 Solid financial position
(A- rating)
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GROWTH MODEL AND TARGETS 2018
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STRATEGY 2018
SIKA’S GROWTH MODEL WILL DELIVER
1. Market penetration
- from roof to floor (cross selling, 7 target markets, KPM)
- from new-build to refurbishment (life-cycle management)
- push and pull market channels (specification, branding)
2. Global technology leadership with continuous innovations and
economies of scale in core technologies
3. Accelerated build-up of emerging markets
4. Acquisitions to strengthen market access, technology,
economies of scale
5. Strong company values with entrepreneurial spirit and high
employee loyalty
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STRATEGY 2018
TARGETS
 Annual sales growth of 6% to 8%
(at constant exchange rates, including acquisitions)
 Emerging markets with 42% to 45% of group sales
by 2018
 Operating profit (EBIT) above 10% of net sales
 Operating free cash flow
above 6% of net sales
 ROCE above 20%
 Maintain A- rating
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4. OUTLOOK
OUTLOOK 2014
 Sales growth expectations lifted from 6 – 8% to 9 – 11% (at
constant exchange rates)
 Continued build-up of growth markets with 8 new factories
 Asia/Pacific: double-digit growth expected in China and
Southeast Asia, stable volumes in Japan, Korea and Pacific
 Latin America: double-digit growth expected overall but
uncertainties in various markets
 North America: after positive development of residential
market in 2013, commercial and infrastructure markets are
expected to improve, expect mid single-digit growth
 EMEA: Continuation of slow recovery, double-digit growth in
Middle East and Africa, high acquisition impact
 Margins on 2013 level expected
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FORWARD-LOOKING STATEMENTS
This presentation contains certain forward-looking statements. These forward-looking statements may be identified by words
such as ‘expects’, ‘believes’, ‘estimates’, ‘anticipates’, ‘projects’, ‘intends’, ‘should’, ‘seeks’, ‘future’ or similar expressions or by
discussion of, among other things, strategy, goals, plans or intentions. Various factors may cause actual results to differ
materially in the future from those reflected in forward-looking statements contained in this presentation, among others:
 Fluctuations in currency exchange rates and general financial market conditions
 Interruptions in production
 Legislative and regulatory developments and economic conditions
 Delay or inability in obtaining regulatory approvals or bringing products to market
 Pricing and product initiatives of competitors
 Uncertainties in the discovery, development or marketing of new products or new uses of existing products, including
without limitation negative results of research projects, unexpected side-effects of pipeline or marketed products
 Increased government pricing pressures
 Loss of inability to obtain adequate protection for intellectual property rights
 Litigation
 Loss of key executives or other employees
 Adverse publicity and news coverage.
Any statements regarding earnings per share growth is not a profit forecast and should not be interpreted to mean that Sika’s
earnings or earnings per share for this year or any subsequent period will necessarily match or exceed the historical published
earnings or earnings per share of Sika.
For marketed products discussed in this presentation, please see information on our website: www.sika.com
All mentioned trademarks are legally protected.
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THANK YOU FOR YOUR ATTENTION