Media Releases 2016

Approximately one year after its national subsidiary was founded in Ethiopia, Sika is opening the first concrete admixture production plant in the country. Sika is the first-ever international company to manufacture its products locally, and the move creates a base from which to build up business activities in the growth market, which has a total population of approximately 100 million.

Sika has agreed to acquire Rmax Operating, LLC, a US-based market leader in the production of polyiso insulation products for complete Building Envelope solutions (roofing and wall systems). The acquisition brings technology and know-how that will accelerate Sika’s growth and drive innovation in the North American market via the strong synergies between the companies. Rmax generated sales in excess of USD 75 million in 2016. The transaction is subject to clearance by anti-trust authorities.

In its decision of October 27, 2016, the Cantonal Court (“Kantonsgericht”) Zug denied all requests of Schenker-Winkler Holding AG (SWH). The Court held that the share transfer restriction (“Vinkulierung”, art. 4 of Sika’s articles of association) applies to the sale of the Sika shares held by SWH to Saint-Gobain.

The Cantonal Court of Zug has informed Sika that it will communicate the judgment to the parties in the case regarding the challenge of certain resolutions adopted by the Annual General Meeting of Sika in 2015 this evening. The judgment will be published on the website of the Cantonal Court at 8.00 p.m. CET. The judgment concerns the legality of the restriction of the voting rights of Schenker-Winkler Holding AG to 5% of all registered shares. Sika will issue a media release when the judgement is known.

▪ Sales growth of 6.3% in local currencies (5.8% in CHF)
▪ Growth in all regions
▪ Operating profit (EBIT) 20.6% higher, net profit up 22.9%
▪ Continued pursuit of growth strategy with four new national subsidiaries and eight new factories
▪ Confirmation of annual targets 2016, new record in sales and profit expected

Sika has agreed to acquire Ronacrete (Far East) Ltd., one of the leading suppliers of repair mortars, tile adhesives and other mortar products in Hong Kong. This acquisition is in line with the global expansion of the high-margin mortar business – a core component of Strategy 2018. The Ronacrete plant brings Sika’s mortar footprint to 89 factories worldwide.

Sika is tapping into the future potential of the automotive sector in Latin America by opening a new factory for adhesives and acoustic products in Sao Paulo, Brazil. Today, more than 25 million vehicles produced worldwide are made stronger and safer with the company’s structural adhesives, while its acoustic systems reduce interior noise by more than 30%.

Sika has acquired FRC Industries a fiber manufacturer based in Tuscaloosa, Alabama. The company offers a full line of high quality synthetic polypropylene and steel fibers for concrete. This acquisition will accelerate growth in the USA and further establish Sika as a comprehensive supplier of solutions for the construction industry.

Sika has opened a technology center focusing on the further and new development of mortar products in Rosendahl, Germany. Following a construction period of 14 months, it was inaugurated in an official ceremony.

The establishment of new national subsidiaries in Djibouti and Cameroon takes the total number of subsidiaries on the African continent to 18. This increases Sika’s international presence to a global total of 97 national subsidiaries.

▪ Sales growth of 7.6% (6.9% in CHF) to CHF 2,806 million
▪ Growth in all regions
▪ Net profit up 24.8%
▪ 2 new national subsidiaries; 6 new factories
▪ Confirmation of annual targets: 6–8% sales growth and disproportionately high growth in profitability

Sika is investing around CHF 2.2 million in the expansion of its production site in Bludenz, Austria. A new warehouse and a new manufacturing line for waterbars is being added to the existing site.

Sika has today been informed that Schenker-Winkler Holding AG (SWH) challenges certain decisions of the Annual General Meeting of Sika of April 12, 2016. With its action SWH challenges essentially the re-election to the board of directors of Monika Ribar as well as Paul Hälg, Daniel Sauter, Ulrich Suter and Christoph Tobler as well as the non-election of Jacques Bischoff as a board member.

Sika has today been informed that Schenker-Winkler Holding AG (SWH) challenges certain decisions of the Annual General Meeting of Sika of April 12, 2016. With its action SWH challenges essentially the re-election to the board of directors of Monika Ribar as well as Paul Hälg, Daniel Sauter, Ulrich Suter and Christoph Tobler as well as the non-election of Jacques Bischoff as a board member.

Sika continues to expand its presence in Latin America. Another mortar factory has come on stream in Ecuador, and a new subsidiary has been set up in Nicaragua. These two growth initiatives tap into additional potential in Latin America and mark the ongoing successful implementation of Strategy 2018.

Sika is expanding its supply chain footprint in Thailand by inaugurating a mortars and concrete admixtures plant. The new facility in Saraburi, 100 km North of Bangkok, is the Group's second in the country. This latest investment will enable Sika to meet the needs of Thailand’s booming construction market, expand its local product portfolio and continue its strong growth.

June 1 marks the official inauguration of the world's longest rail tunnel. Sika's front-line technologies and construction expertise played a crucial role in the successful completion of one of Europe's most important infrastructure projects. The immensely challenging quality requirements were met through the use of Sika's durable solutions for waterproofing, fire protection, coatings, and concrete and shotcrete production.

Sika has appointed Yumi Kan as its new Head Building Systems & Industry and Member of Group Management effective July 1, 2016. The 45 year old Vietnamese succeeds Silvio Ponti, who has decided to retire at the end of 2016.

Sika Automotive has won 4 awards in the 22nd annual Communicator Awards competition in North America.

▪ April 12, 2016 confirmed as date of 2016 Annual General Meeting
▪ All current members of the Board of Directors are standing for re-election
▪ Board of Directors rejects proposal of Schenker-Winkler Holding AG to elect Jacques Bischoff to the Board of Directors
▪ Board of Directors supports proposal of shareholder group comprising Cascade Investment/Bill & Melinda Gates Foundation Trust/Fidelity Investments International/ Columbia Threadneedle Investments regarding extension of term office of Special Experts