Sika News 2017

More than 160 cyclists took part in an endurance bike ride through the Trough of Bowland to raise vital funds for the North West Air Ambulance.

Sika UK welcomed journalists from some of the leading construction industry publications to its Preston site this month for a behind-the-scenes tour.

Every year, Manchester School of Architecture organizes ‘Events’, a series of collaborative design exercises that encourage communication between architecture academia and other domains such as arts, construction, industry, film or fashion.

Sika UK are pleased to announce our attendance at this year’s Automechanika. Launched in 2016, the event has gained overwhelming approval from the market, attracting over 12,000 visitors.

Sika has relocated its concrete admixture and mortar production in Almaty, in the south of Kazakhstan, to a larger site in the 1.7-million-population city.

We are pleased to announce that Sika UK will be exhibtibiting for the very first time at Railtex exhibition on Tuesday 9th May. The event takes place at the NEC Birmingham and attracts thousands of people involved in both rail infrustructure and rolling stock sectors.

Sika has received the "Research Cooperation Prize" from the Technical University
of Madrid for its socio-economic impact and relations with the university. The accolade recognizes the company's commitment to innovation and its model
relationship with the university, which has been close for more than 20 years.

The Sika success story continued in 2016, another record year. In local currencies, sales increased by 5.5% to CHF 5,747.7 million.

Global building product manufacturer Sika has joined the Construction Products Association’s (CPA) Industry Principals Council

In its judgment of October 27, 2016, the Cantonal Court of Zug denied all requests of Schenker-Winkler Holding AG (SWH). The Court held that the restriction of SWH's voting rights at the Annual General Meeting 2015 pursuant to the share transfer restriction ("Vinkulierung", art. 4 of Sika's articles of association) was legal.

April 11, 2017 is confirmed as date of the Annual General Meeting. All current members of the Board of Directors are standing for re-election.

Sika has completed the acquisition of Rmax Operating, LLC, a US-based market leader in the production of polyiso insulation products for complete Building Envelope solutions (roofing and wall systems) on January 31, 2017. The deal was announced on December 14, 2016. With annual sales of CHF 75 million, Rmax is a proven industry leader with headquarters in Dallas, Texas.

Today after the publication of the invitation for the Annual General Meeting of April 11, 2017, Sika AG has received an additional agenda item request from Schenker-Winkler Holding AG (SWH). SWH requests that with Jacques Bischoff another representative of SWH be elected to the Board of Directors of Sika AG.

Schenker‐Winkler Holding AG (SWH) announced today that it rejects the Board’s proposal to pay out a dividend of CHF 102 per bearer share and will propose a dividend of CHF 96 per bearer share at the Annual General Meeting of April 11, 2017.

Sika is acquiring Bitbau Dörr, a leading waterproofing system manufacturer, headquartered in Innsbruck, Austria. The transaction is subject to approval by the Austrian competition authority. The product portfolio includes complete waterproofing systems for roofs, buildings and civil engineering applications. In the past business year, the company with its 85-strong staff recorded sales of CHF 50 million.

The Board of Directors of Sika has decided on changes in Group Management to align the organization with Sika’s growth strategy and its targets 2020. The following management changes are effective as of April 1, 2017.

Important proposals of the Board approved

Sika is opening a new mortar production facility at Coatzacoalcos in southeast Mexico. The new plant will also take over the manufacture of concrete admixtures from the previous production site at Villahermosa. Through its five factories, Sika has now established a nationwide supply chain. With a population of 120 million, Mexico has one of the largest domestic markets in Latin America and is investing heavily in infrastructure expansion.

Sika is expanding its presence in West Africa and is establishing a new national subsidiary in Senegal – following those in Nigeria, Ivory Coast and Cameroon. After Ivory Coast, Senegal is the country with the fastest growth in the region. A local production facility for concrete ad-mixtures is already being planned, which will subsequently be expanded to include mortar products. The company has a strong presence in Africa with 19 national subsidiaries and 17 factories.

Sika has today been informed that Schenker-Winkler Holding AG (SWH) challenges certain decisions of the Annual General Meeting of Sika of April 11, 2017. With its action SWH essentially challenges 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.

Automated technologies such as 3D printing, extrusion, the use of artificial intelligence and virtual reality will revolutionize the construction industry - in particular 3D printing technology is considered a driver for a paradigm shift in concrete industrialization. Sika has been involved from the onset in this technology, working in close cooperation with leading universities and other key industrial players.

Sika has relocated its concrete admixture and mortar production in Almaty, in the south of Kazakhstan, to a larger site in the 1.7-million-population city. Aside from the booming Kazakh market, the new plant will also serve the construction sector in the neighboring country of Kyrgyzstan to the south. The country benefits from its strategic location on a key transportation route between Europe and China.

Sika has appointed Paul Schuler, currently Regional Manager Europe Middle East Africa (EMEA), as Chief Executive Officer as of July 1, 2017. He succeeds Jan Jenisch who has accepted to become the new CEO at LafargeHolcim.

Sika is setting up production in Tanzania and is opening a concrete admixtures factory. Sika is the first company to manufacture these products locally. Plans are already being made to add a mortar products manufacturing line. The company’s aim in establishing a local supply chain in the East African state, which has a population of 50 million, is to benefit from planned investments in infrastructure.

Sika is expanding its product portfolio in Russia with the commissioning of a new production line for PVC membranes at its factory in Lobnya, near Moscow. It will now also manufacture high-performance thermoplastic membranes for waterproofing structures at this location, resulting in significant cost savings and competitive advantages.

Sika has acquired ABC Sealants, a leading Turkish-based manufacturer of sealants and adhesives. The acquisition will strengthen Sika’s market position in Turkey and further establish Sika as a comprehensive supplier of solutions for interior finishing applications.

Ivo Schädler will assume responsibility for the Europe, Middle East and Africa (EMEA) region and will join Sika's Group Management. He succeeds Paul Schuler, who was appointed Chief Executive Officer in May. Both will commence their new roles on July 1, 2017.

Sika has agreed to acquire KVK Holding a.s, headquartered in Prague, Czech Republic, a leading manufacturer of waterproofing and roofing systems as well as a wide range of mortar products. KVK generated sales of CHF 42 million in 2016. The transaction is subject to clearance by anti-trust authorities.

With the commissioning of a new factory for mortar products and concrete admixtures, Sika has expanded its manufacturing capacity in Pakistan and is responding to the country's construction boom. Demand in the infrastructure and residential construction segments in particular is enormous. With its rapidly growing population of over 200 million, Pakistan is one of the world’s most populous countries.

Sika has acquired Butterfield Color, Inc. a US-based market leader in the production of decorative concrete floor products and systems. The acquisition will accelerate Sika’s growth by bringing the most comprehensive range of solutions for concrete contractors in the North American construction market. Butterfield generated sales of CHF 20 million in 2016.

Sika has agreed to acquire Faist ChemTec Group, a leading manufacturer of high-performance engineered, structure-borne acoustic solutions for the automotive industry. Headquartered in Worms, Germany, the company generates annual sales of CHF 190 million and employs 840 people worldwide. The acquisition brings technology and know-how that will accelerate Sika’s growth and drive market penetration via the strong synergies between the two companies. The transaction is subject to clearance by anti-trust authorities.

Sika is continuing to expand its presence in Central America and is setting up its 99th national subsidiary in El Salvador. The company will thus be represented by its own sales and distribution organization in the smallest Central American country – which, however, has the highest population density and over 6 million inhabitants.

Sika has started producing high-performance concrete reinforcing fibers for clients in the Europe, Middle East and Africa region at its manufacturing facility in Troisdorf, Germany, where a new production line has been commissioned. Made of a thermoplastic material (polypropylene), the fibers are used to increase the structural strength of concrete in highly demanding applications. With this new production line, Sika is continuing to expand its range of concrete additives and positioning itself as an innovative single-source supplier to the construction industry.

Sika is expanding its presence in Africa and opens a new facility in the Angolan capital, Luanda. In addition to the production of concrete admixtures in an existing factory, mortar products – one of the Sika Group's fastest-growing areas of business – will also be manufactured locally.

Sika is further expanding its presence in Africa by opening its first facility for concrete admixtures in Cameroon. Following the foundation of the national subsidiary in 2016 to address the developing market potential the latest investment will enhance the local supply chain footprint.

STRATEGIC TARGETS CONFIRMED; OVER 20 PRODUCTS AND INNOVATIONS PRESENTED.
At the Sika Capital Markets Day in Zurich today, Sika CEO Paul Schuler confirmed the 2020 strategic targets. Heralded by the slogan “From patents to world-class products”, more than 20 products and innovations from all target markets were presented, including products for higher building standards, for 3-D concrete printing and for electric vehicles.

The Board of Directors of Sika has decided to set up a new, strong region Americas. The aim is to create a more efficient supply chain and benefit from larger purchasing volumes in the closely intertwined regions of North and Latin America. This change will take effect as of March 1, 2018.

With the establishment of a new national subsidiary in Bangladesh, Sika has reached a further milestone in the implementation of its growth strategy and is now represented in 100 different countries. 23 national subsidiaries have been established over the past five years alone, making it possible to tap into growth potential in new markets. Bangladesh has over 163 million inhabitants and is one of the most populous countries in the world with a flourishing construction industry.

Sika has agreed to acquire certain assets of Grupo Industrial Alce in Mexico. As a result Sika will extend its range of solutions for roofing and waterproofing customers, and further expand its manufacturing footprint in Mexico to better serve the Mexico City metropolitan area.

Sika has acquired Emseal Joint Systems, Ltd., a US-based market leader in the development and manufacturing of structural expansion joint products for new construction and refurbishment. With the acquisition, Sika will be able to offer the most comprehensive range of sealing and bonding solutions available in the North American construction market. Emseal generates annual sales of CHF 40 million.

▪ 5.6% increase in sales in local currencies to CHF 5.75 billion for 2016
▪ Growth in all regions
▪ 9 new factories and 4 national subsidiaries opened
▪ Disproportionately high increase in profit expected for full year

2016 saw sales climb by 5.6% in local currencies to the equivalent of CHF 5.75 billion. Investments in new factories and national subsidiaries, as well as market launches of new products, contributed to the broad-based organic growth of 4.7%. A record profit is expected for business year 2016.

With the opening of a new facility near Houston, Sika is further expanding its presence in the fast-growing US market. The 16-hectare site will be used for manufacturing a comprehensive portfolio of concrete admixtures and mortar products. The facilities will also serve as a strategic business center which will help tap into the enormous growth potential of the construction market in Texas and the southwestern states of the USA.

▪ 10.7% sales growth in local currencies to CHF 1,389.0 million
▪ Dynamic growth in all regions
▪ Opening of one new factory, acquisition of one company
▪ Sales to exceed CHF 6 billion in 2017

▪ Record results for sales, earnings and operating free cash flow
▪ Sales of CHF 5,747.7 million achieved (+5.5% in local currencies)
▪ Net profit increased to CHF 566.6 million (+21.8%)
▪ Growth in all regions
▪ 9 new factories opened, 4 national subsidiaries established, 4 acquisitions
▪ Strategic targets for 2020 raised

▪ Sales growth of 7.9% in local currency (6.8% in CHF) to CHF 4,627.5 million
▪ Growth in all regions
▪ Operating result (EBIT) up 13.2%, net profit 14.9% higher
▪ Growth strategy continues with two more national subsidiaries, four new factories and three acquisitions
▪ Confirmation of 2017 annual targets – annual sales expected to exceed CHF 6 billion for the first time