Media Releases 2020

Sika is expanding its cooperation with CiDRA Concrete Systems Inc., headquartered in Eden Prairie, Minnesota, and has completed a growth equity investment agreement to supplement its existing global relationship. CiDRA specializes in IoT-based digital systems to monitor concrete properties during transport. Sika and CiDRA already offer this service to customers in the US and Canada – now concrete producers in other countries will follow.

Sika, the world's biggest manufacturer of adhesives and sealants for the building sector and automotive industry, has developed a new polyurethane technology, which it is launching onto the market under the Purform® brand. The new polymers will first be integrated into Sika's top seller Sikaflex®, as well as into liquid applied membranes. This innovation brings important benefits for customers: the products have an improved performance profile, are even more enduring, and have a strong sustainability profile. Investments in the associated production facilities were recently made at the Düdingen site.

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 has started production of shotcrete admixtures at its main plant at Gournay-en-Bray, north west of Paris. The set accelerator marketed under the Sigunit® brand is used primarily in tunnel construction. The market potential in France and beyond is considerable – in western Europe alone, tenders have been issued for tunnel construction projects with a combined length of 900 kilometers, with these projects set to come on stream over the next few years.

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

With the commissioning of a new production facility in Chengdu, Sika has further expanded its capacity in the rapidly growing mortar market in China. In addition to profiting from the strong demand, Sika can also benefit from the launch of new products and the expansion of the distributor network offering Sika solutions directly to craftsmen and DIY customers.

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.