Media Releases 2020

Sika further expands its production capacity in the United Arab Emirates with the commissioning of a new manufacturing facility in Dubai. In addition to concrete admixtures, epoxy resins are now being produced locally for the Target Market Flooring. The site in Dubai was established in 2018 as a strategic distribution and sales center for the region.

Sika appoints Raffaella Marzi, Corporate Head Human Resources & Compliance, as a new member of the Group Management effective as of November 1, 2020 and recommends Esther Berrozpe Galindo to be elected to the Board of Directors at the next Annual General Meeting, to be held on April 20, 2021.

Sika appoints Raffaella Marzi, Corporate Head Human Resources & Compliance, as a new member of the Group Management effective as of November 1, 2020 and recommends Esther Berrozpe Galindo to be elected to the Board of Directors at the next Annual General Meeting, to be held on April 20, 2021.

▪ In the first nine months: sales growth of 2.6% in local currencies
▪ Strongly negative currency effect of –6.0%
▪ EBITDA margin increased to 18.5%
▪ Over-proportional EBIT growth and increase in operating profit margin (EBIT) to 13.7%
▪ Operating free cash flow remains strong and exceeds prior-year figure
▪ Completion of acquisition of Adeplast (Romania), takeover of Modern Waterproofing Group (Egypt), and construction of new factories in Barranquilla (Colombia) and Chengdu (China)
▪ Outlook for 2020: For the fiscal year 2020, Sika is expecting slightly lower sales in CHF but EBIT broadly in line with last year, implying an over-proportional rise in EBIT in the second half.
▪ Confirmation of 2023 strategic targets for sustainable, profitable growth

At the Sika Capital Markets Day 2020 held in Zurich today, CEO Paul Schuler will confirm the strategic targets 2023. Under the motto: "Weathering the storm – emerging from the COVID‐ 19 crisis as a stronger company," members of Group Management and Sika experts explain how important trends such as innovation and digitalization, renovation and sustainability are opening up the opportunity for the company to gain further market share during the crisis.

▪ Sales growth of 2.9% in local currencies to CHF 3,614.6 million (–3.2% in CHF)
▪ High negative currency effect of –6.1% (impact of minus CHF 225 million in sales and CHF 29 million in EBIT)
▪ Maintained high EBITDA margin of over 16% (currency adjusted absolute EBITDA was flat)
▪ Operating profit (EBIT) at CHF 410.2 million (–14.8%)
▪ Increased operating free cash flow amounting to CHF 254.7 million (+41.7%)
▪ Closing of acquisition of Adeplast (Romania), takeover of Modern Waterproofing Group (Egypt), and buildup of a new factory in Barranquilla (Colombia)
▪ Outlook for the second half of the year: Sika is expecting more favorable market conditions. With the anticipated improvement in sales volumes, the company expects an over-proportional EBIT increase for the second half of the year
▪ Confirmation of 2023 strategic targets for sustainable, profitable growth

Sika has acquired Modern Waterproofing Group, a leading manufacturer of roofing and waterproofing systems in Egypt. The acquisition supplements and rounds off the product portfolio of Sika Egypt and offers new opportunities for growth in the Egyptian construction market. The acquired business generates annual sales of CHF 26 million.

Sika has commenced production of respiratory masks in France. In addition to hand sanitizer, which is being manufactured at over 15 Sika national subsidiaries since March 2020, safety masks are now being produced for employees, customers, and other interested parties. Production capacity stands at around 15,000 masks per day.

At the 52nd Annual General Meeting of Sika AG on April 21, 2020, all proposals of the Board of Directors were approved.

▪ Sales increase of 15.4% in local currencies to CHF 1,813.6 million (+10.3% in CHF)
▪ Negative currency effect of –5.1%
▪ Acquisition of Adeplast (Romania) concluded, new production facility in Sarnen (Switzerland) comes on stream
▪ Outlook for 2020: forecast for 2020 not yet possible due to ongoing developments related to COVID-19
▪ Confirmation of 2023 strategic targets for sustainable, profitable growth