Brexit Update

To assist our customers this statement provides an overview of the actions the business is taking to minimise the possible disruption if a Trade Agreement cannot be realised between the UK and the EU by 31 December 2020 and WTO Terms are imposed. Whilst we hope that an agreement will be made we have taken a number of steps to secure our supply chains, some of which are outlined below:

• We have again formed a Senior Management Project Team who are working with industry specialists, government advisory services and partners within our supply chains to prepare and plan as we navigate through this next phase of Brexit. This has been ongoing for some time to ensure sensible preparations can be undertaken and contingencies established in a suitable time frame.
• Where possible we will be increasing our inventories of Finished Goods, Raw Materials and Packaging for all our Target Markets.
• We have been in and continue discussions with all our key suppliers and are developing contingency plans as to how they can support us during the critical period, this includes our sister companies.
• We have the option to increase storage at our existing facilities and the use off site storage; but the levels of inventory required are difficult to quantify in these circumstances.
• We have initiated a process of exploring alternative supply chains and evaluating the potential benefits they may provide during this difficult time.

The view of Sika UK is that with our current stockholding and planned activities we will be well placed to deal with some disruption however the extent of any disruption is unknown so we cannot quantify to what extent serious disruption would impact our supply chains. We will endeavour to use our considerable resources to support and maintain suitable supply chains for all our customers during these potentially challenging times.