Sika News 2014

Sika AG has received from Ethos Stiftung and eleven other shareholders* who represent together 22,493 bearer shares of Sika with a total nominal value of CHF 13,495.80 the request for an agenda item for the extraordinary General Meeting requested by Schenker-Winkler Holding AG. Ethos and the eleven other shareholders propose the deletion of article 5 of the articles of incorporation (Opting out). The Board of Directors will examine the request and proposal and will comment in due course.

In response to numerous requests from shareholders and with the intent of entering into a constructive dialogue, Sika will discuss the situation resulting from the planned transaction between the Burkard Family and Saint-Gobain with its investors, based on the presentation as published on the Sika website.

Sika AG has received from Schenker Winkler Holding AG the request to convene an extraordinary General Meeting. Schenker Winkler Holding AG represents more than 10% of the share capital of Sika AG and proposes to remove Dr. Paul Hälg, Monika Ribar and Daniel Sauter as current members of the Board of Directors and to elect Chris Tanner and Max Roesle as additional members of the Board of Directors. Further Schenker Winkler Holding AG proposes to elect Max Roesle as chairman of the Board of Directors and Willi Leimer as additional member of the Nomination and Compensation Committee. The Board of Directors will examine the request and proposals and will comment in due course.

The Board of Directors and the Group Management of Sika were informed Friday evening, December 5, 2014, that the French Group Saint-Gobain intends to indirectly acquire all shares held by the Burkard family, Sika's current majority shareholder. If the transaction were to be closed, Saint-Gobain would control 52.4% of all voting rights and 16.1% of Sika's share capital. The Board and Group Management are informed that Saint-Gobain will not make an offer to public shareholders of Sika AG and that the transaction is subject to approval by the anti-trust authorities.

Sika is further expanding its research and development activities. In the presence of His Royal Highness, Prince Edward Duke of Kent, Sika has opened a state-of-the-art research facility in Preston in north west England.

RESULTS FOR THE FIRST 9 MONTHS OF 2014:
▪ 15.8% sales growth (9.6% in Swiss francs) to CHF 4,174.4 million
▪ Growth in all regions
▪ Sales up 16.5% in emerging markets
▪ Net profit 21.2% higher

Sika CEO Jan Jenisch: “We achieved further strong growth in the third quarter and, despite challenging market conditions worldwide, increased sales by over 11% and posted an above-average rise in net profit. We are on track to realize the targets set under Strategy 2018. Our success is based on the accelerated expansion of growth markets, our investments in new factories, acquisitions and new product launches, coupled with the achievements and know-how of our employees.”

With a new plant in Serbia and the foundation of a subsidiary in Bosnia-Herzegovina, Sika is laying the foundation for further growth in South-Eastern Europe.

Rod Benson, Business Unit Manager for Sika Roofing give an update on the history of Sika roofing in the UK for both the liquid applied membranes and single ply brands.

Sika began in 1910 and through the century has continually evolved and developed in order to keep ahead of the competition, as well as meeting the needs of our customers within all elements of the construction industry.

▪ Sales up 18.1% (10.6% in Swiss francs) to CHF 2,656.9 million
▪ Sales gains in all regions
▪ 18.1% growth in the emerging markets
▪ Net profit 25.7% higher

Following an increased demand for Sika within the caravan and motorhome industries, we are pleased to announce our membership of the National Caravan Council (NCC).

On 15th May 2014 Sika Limited welcomed new and existing customers to our UK headquarters and training facilities at Welwyn Garden City to take part in the 2014 UK Transportation Seminar. The seminar was a corporate and UK combined event, to promote our expertise and solutions in bus, commercial vehicle, rail and specialist vehicle markets.

Sika is acquiring the business of Klebag Chemie AG, a manufacturer of adhesives for the sealing, bonding and flooring markets. The takeover strengthens Sika’s position in the Swiss interior finishing sector. Last financial year, Klebag generated net sales of CHF 12 million.

All the Board of Directors' proposals were accepted by shareholders at the 46th Annual General Meeting of Sika AG on April 15, 2014.

▪ 23.3% sales growth (15.6% in Swiss francs) to CHF 1,206.2 million
▪ Sales gains in all regions
▪ 20.6% growth in the emerging markets

Sika has acquired a manufacturing facility located in South Korea in order to build up a locally produced flooring and coating range. With this additional production capacity, Sika is taking another step in expanding its supply chain in the Asia/Pacific region.

One of the pillars of Sika’s success and reputation is its long-lasting tradition of innovation. Accordingly, the core of its business is innovation management and a focus on developing quality products and the best solutions for customers.

▪ 9.4% sales growth (6.5% in Swiss francs) to CHF 5,142.2 million
▪ Sales up 17.2% in emerging markets
▪ 23.8% increase in net profit to CHF 344.7 million
▪ Operating free cash flow of CHF 432.7 million (+43.0%)
▪ Further investments in growth markets with ten new factories in Asia, Latin America, Africa and Eastern Europe
▪ 73 new patents
▪ Profitable growth and market leadership targeted with Strategy 2018

Pálava in Southern Moravia in Czech Republic is not just a great place for strolls in nature and getting to know Moravian wines! A huge water park with the largest amount of indoor attractions in the country was built.

Sika has agreed to acquire Lwart Química Ltda., a renowned supplier of waterproofing products in Brazil. The acquisition strengthens Sika’s position in the Brazilian construction chemicals market and complements Sika’s geographical footprint in Brazil. Last year Lwart Química generated net sales of CHF 33 million.