DISCLOSURE 103-1: EXPLANATION OF THE MATERIAL TOPIC AND ITS BOUNDARY
Financial solidity and long-term profitability ensure that Sika remains a reliable and value-adding partner for all its stakeholders now and in the future, and they represent important cornerstones in maintaining global technology leadership and market penetration from design and construction to refurbishment.
By evaluating economic impacts, risks and opportunities deriving from investments in assets and innovation, Sika strives to focus on the most promising opportunities that deliver optimized value for its customers, in the form of durable solutions, and create returns that benefit shareholders. Moreover, economic health enables Sika to share created value with its various stakeholders, be a reliable employer, an attractive long-term investment opportunity, a responsible taxpayer, and a good corporate citizen that helps communities to flourish. Ultimately, economic value creation simultaneously helps improve the economic, environmental, and social conditions for Sika and its stakeholders and is therefore an aspect of high importance.
DISCLOSURE 103-2: THE MANAGEMENT APPROACH AND ITS COMPONENTS
GOALS AND TARGETS
The Sika growth model is synonymous with long-term success and profitable growth. By targeting the six pillars of market penetration, innovation, operational efficiency, acquisitions, strong corporate values, and sustainability, Sika plans to grow by 6-8% a year up to 2023. At the same time, it is aiming for a higher EBIT margin of 15-18%, instead of today’s 14-16%.
Thee Goals and Target are specified on the Corporate Website (Link) and in the Annual Report 2020, p. 16.
Overall responsibility for financial performance at Group level remains with the Group CFO, CEO, and the Board of Directors. Since Sika’s international expansion first began, Sika has organized its global activities by country. The national units were later consolidated into regions with higher-level management functions. The heads of the regions are members of the Group Management. The regions are EMEA (Europe, Middle-East, and Africa), Asia Pacific (APAC), Americas and Global Business. The regional and national management teams bear full profit and loss responsibility, and – based on the Group strategy – set country-specific growth and sustainability targets and allocate resources.
DISCLOSURE 103-3: EVALUATION OF THE MANAGEMENT APPROACH
Sika evaluates its management approach through a process steered by the Board of Directors. The company audits and publishes the results accordingly in the quarterly and annual reports.