SIKA CAPITAL MARKETS DAY FROM PATENTS TO WORLD CLASS PRODUCTS PAUL SCHULER, CEO, ZURICH, SEPTEMBER 20, 2017

Transcription

1 SIKA CAPITAL MARKETS DAY FROM PATENTS TO WORLD CLASS PRODUCTS PAUL SCHULER, CEO, ZURICH, SEPTEMBER 20, 2017

2 TABLE OF CONTENTS 1. STRATEGIC TARGETS OUTLOOK 3. SUCCESSFUL STRATEGY EXECUTION LIFE-CYCLE MODEL ACQUISITIONS 4. FROM PATENTS TO WORLD CLASS PRODUCTS 2

3 12% 10% 8% 6% 4% 2% 0% SIKA WELL ON TRACK 8.1% SALES GROWTH IN THE FIRST HALF % 8.1% 5.6% 1.6% 2.4% in LC acquisition organic 1.9% 3.7% 6.0% 5.7% 1HY HY HY 2017 in CHF mn 1HY HY HY 2017 Net sales 2, , ,

4 SIKA WELL ON TRACK CONTINUOUS MARGIN IMPROVEMENT HALF-YEAR FIGURES 4

5 1. STRATEGIC TARGETS 2020

6 SIKA S GROWTH MODEL WILL DELIVER STRATEGIC TARGETS 2020 MARKET PENETRATION 6-8% ANNUAL GROWTH INNOVATION EMERGING MARKETS ACQUISITIONS VALUES 30 NEW PLANTS 105 NATIONAL SUBSIDIARIES 14-16% EBIT MARGIN PER YEAR > 10% OPERATING FREE CASH FLOW PER YEAR > 25% ROCE PER YEAR 6

7 SIKA S GROWTH MODEL WILL DELIVER MORE THAN CHF 1 BILLION EBIT IN 2020 Megatrends Urbanization, New Vehicle Design and Sustainability drive growth Fragmented market of CHF 80 billion with huge growth opportunities Sika is ideally positioned to profit from all phases of the construction lifecycle Sika GROWTH MODEL confirmed key investments defined Strategic targets confirmed for 2020 confident that GROWTH MODEL continues to deliver growth and margin improvement More than CHF 1 billion EBIT in

8 2. OUTLOOK

9 CONFIRMATION OF OUTLOOK SALES TO EXCEED CHF 6 BILLION IN % sales growth in local currencies Sales to exceed CHF 6 billion for the first time Improvement in EBIT and net profit margins Opening of 8 new plants Foundation of 3 new national subsidiaries 9

10 3. SUCCESSFUL STRATEGY EXECUTION

11 SIKA S MARKET POTENTIAL LARGE AND GROWING MARKET SEGMENTS TOTAL MARKET SIZE 2020 CHF 80 BILLION Concrete Waterproofing FLOORING INDUSTRY CONCRETE WATER- PROOFING Roofing Flooring ROOFING SEALING & BONDING Sealing & Bonding Refurbishment Industry REFURBISHMENT 11

12 GROWTH MODEL WITH EARLY MARKET PENETRATION FROM NEW BUILD TO REFURBISHMENT Sika s Market Potential Repair & Refurbishment Market Education & Building Standards Concrete repair, mortars, roofing, flooring, waterproofing, sealing Infrastructure Bridges, tunnels, air and sea ports, water treatment, hospitals, power plants Increase of building standards, faster and more efficient systems 12 Maturity of the Construction Market EMERGING DEVELOPING MATURE

13 Sika s Market Potential GROWTH MODEL WITH EARLY MARKET PENETRATION FROM NEW BUILD TO REFURBISHMENT Products (examples): Sika ViscoFlow SikaProof A Infrastructure Bridges, tunnels, air and sea ports, water treatment, hospitals, power plants Maturity of the Construction Market 13 EMERGING DEVELOPING MATURE

14 GROWTH MODEL WITH EARLY MARKET PENETRATION FROM NEW BUILD TO REFURBISHMENT Sika s Market Potential Products (examples): Sikafloor PurCem Gloss SikaScreed HardTop Sika Unitherm Platinum Market Education & Building Standards Increase of building standards, faster and more efficient systems 14 Maturity of the Construction Market EMERGING DEVELOPING MATURE

15 GROWTH MODEL WITH EARLY MARKET PENETRATION FROM NEW BUILD TO REFURBISHMENT Sika s Market Potential Products (examples): Sikalastic -641 Sikafloor PurCem Gloss Sika Injection-307 Repair & Refurbishment Concrete repair, mortars, roofing, flooring, waterproofing, sealing 15 Maturity of the Construction Market EMERGING DEVELOPING MATURE

16 Sika s Market Potential GROWTH MODEL WITH EARLY MARKET PENETRATION FROM NEW BUILD TO REFURBISHMENT Sika is ideally positioned to profit from all phases of the construction life-cycle Sika s long-term MARKET POTENTIAL Market Education & Building Standards Repair & Refurbishment Concrete repair, mortars, roofing, flooring, waterproofing, sealing Infrastructure Bridges, tunnels, air and sea ports, water treatment, hospitals, power plants Increase of building standards, faster and more efficient systems 16 Maturity of the Construction Market EMERGING DEVELOPING MATURE

17 EMERGING MARKETS BUILD-UP IN THE LAST FIVE YEARS CAPTURING GROWTH POTENTIAL IN NEW MARKETS % 22 36% new plants opened average annual sales growth new national subsidiaries of sales in Emerging Markets 17

18 SIKA S MARKET POTENTIAL FRAGMENTATION OFFERS ACQUISITION OPPORTUNITIES CONSTRUCTION CHEMICAL MARKET 2016 > CHF 60 BILLION Sika Top 10 companies with a combined market share of 40% Other 18

19 ACQUISITIONS IN THE LAST FIVE YEARS GROWTH PLATFORMS FOR THE FUTURE In all In all acquisitions million CHF additional turnover Target Markets regions 19

20 ACQUISITIONS AS GROWTH PLATFORM RMAX, USA Rmax Operating, LLC, USA (announced Dec 16, closing Jan 17) Market leader in the production of polyiso insulation products for complete Building Envelope solutions (roofing and wall systems) CHF 75 million sales New technology and know-how will accelerate growth and drive innovation in the North American market Strong synergies with Sika technologies Will allow Sika USA to benefit from in-house production of wall and roofing insulation products in three plants with good geographical coverage 20

21 ACQUISITIONS AS GROWTH PLATFORM BITBAU DÖRR, AUSTRIA Bitbau Dörr, Austria (closing end Feb 17) Leading waterproofing system manufacturer CHF 50 million sales Sika will be able to offer a wider range of durable, highgrade waterproofing systems based on polymermodified bitumen membranes Strong growth opportunities resulting from expanded distribution channels and broader customer base Sika will establish new site as Center of Excellence for bitumen waterproofing systems 21

22 ACQUISITIONS AS GROWTH PLATFORM ABC SEALANTS, TURKEY ABC Sealants, Turkey (closing end Aug 17) Leading sealants and adhesives manufacturer Will strengthen market position in Turkey and further establish Sika as comprehensive supplier of solutions for interior finishing applications Extensive cross-selling opportunities through wider product range and improved access to professional distribution channels Will function as distribution and production hub for Middle East and Africa, reinforcing the supply chain in this region 22

23 ACQUISITIONS AS GROWTH PLATFORM KVK HOLDING, CZECH REPUBLIC KVK Holding, Czech Republic (estimated closing Oct 17) Leading manufacturer of waterproofing and roofing systems as well as a wide range of mortar products CHF 42 million sales Six strategically located plants will strengthen production platform and expand geographical footprint in the growing Czech market Highly complementary product portfolios Better access to major builders merchants will enhance market presence 23

24 4. FROM PATENTS TO WORLD CLASS PRODUCTS

25 INNOVATION STRONG TRACK RECORD More than More than More than Established patents were filed in the last five years employees are dedicated to Research and Development invention disclosures in the last five years Technology Centers worldwide 25

26 FROM PATENTS TO WORLD CLASS PRODUCTS 3 MAJOR TRENDS IN THE MARKET Higher building standards Urbanization and megacities require intelligent and safe building designs Addressable market for fire protective coating products CHF 1 billion by D Printing Paradigm shift in construction industry with 3-D concrete printing Additional market potential of CHF 1 billion by 2025 New opportunities in electric vehicles Electric vehicles will be a game changer for automotive industry 20% more Sika solutions in electric vehicles 26

27 SIKA IS THE TECHNOLOGY LEADER CREATING CUSTOMER VALUE Sika is an innovation company Innovation is a combination of Sika s core strengths: Empowered cross functional teams and strong customer interaction R&D is aligned to real customer needs Innovation drives sales growth and margin improvement 27

28 FROM PATENTS TO WORLD CLASS PRODUCTS INNOVATION INCREASES SALES AND PROFIT 20% 420 NEW PATENTS 1,500 = NEW PRODUCTS LAUNCHED IN THE LAST 5 YEARS ANNUAL ORGANIC SALES GROWTH INCREASE 30% ANNUAL EBIT CONTRIBUTION 28

29 THANK YOU FOR YOUR ATTENTION

30 FORWARD-LOOKING STATEMENT 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 are 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: All mentioned trademarks are legally protected. 30