Sika Group net sales in 2005 rose against the preceding year by 13.9% from CHF 2,559.8 mil. to 2,916.5 mil. The improvement was largely due to organic growth.

Acquisitions contributed merely 0.3 percentage points to the expansion. In local currencies sales were 12.1% higher. For the first time in a long while currency effects added 1.8 percentage points to the growth expressed in Swiss francs. The Construction and Industry Divisions supported the advance equally. Regionally the company’s growth was broad-based.

Operating profit (EBIT) were up 16.7% from CHF 209.6 mil. to CHF 244.7 mil. At CHF 154.9 mil. (prior year: CHF 121.6 mil.) consolidated net profit was 27.4% higher than in the preceding year.

The operating free cash flow of CHF 128.7 mil. (prior year: CHF 152.6 mil.) was 15.7% lower than a year earlier. The sharp growth in sales, particularly in the last quarter, tied up more net working capital than usual at the balance sheet date.

The acquisition of Sarna Polymer Holding Inc. is consolidated in the balance sheet. The impact on the income statement 2005 was negligible.

The Board of Directors will propose to the Annual General Meeting on April 6, 2006 a repayment of the nominal share value amounting per bearer share to CHF 19.20 or CHF 3.20 per registered share.