Construction World April 2020

CEMENT & CONCRETE TECHNOLOGY

RECORD RESULTS FOR SALES, PROFIT, AND CASH FLOW

Sika once again delivered record results in 2019. Sales in Swiss francs rose by 14,4% year-on- year to CHF8 109-million, which equates to an increase of 16,3% in local currencies. Operating profit increased by 11,5% to CHF 1 055-million, thereby surpassing the billion-franc threshold for the first time. Net profit was recorded at CHF 759-million, representing a year-on-year growth of 10,4%. Operating free cash flow doubled versus the previous year, amounting to CHF 1 026-million.

P DXO 6FKXOHU &(2 :LWK VWURQJ JURZWK RI DQG VDOHV UHDFKLQJ &+) ELOOLRQ ZH VXUSDVVHG RXU &+) ELOOLRQ VDOHV WDUJHW IRU ͤVFDO ,Q D FKDOOHQJLQJ PDUNHW HQYLURQPHQW ZH DFKLHYHG UHFRUG UHVXOWV LQ RSHUDWLQJ SURͤW SURͤW DQG FDVK ͥRZ and we are convinced that we will be able to sustain our positive growth momentum over the coming years. With our new Strategy 2023, we are moving the performance of our organization to the next level. The business potential opening up for Sika places us in an RXWVWDQGLQJ SRVLWLRQ IRU VXVWDLQDEOH DQG SURͤWDEOH JURZWK , ZRXOG like to thank our worldwide workforce of over 25 000 people for their tremendous dedication and for the unique way they identify with our organization." 6LND FDQ ORRN EDFN RQ D KLJKO\ VXFFHVVIXO ,W ZDV D \HDU in which numerous projects were realized to set the course for an even stronger performance, in particular the acquisition of Parex, WKH ODUJHVW LQ 6LND̵V KLVWRU\ :LWK VDOHV RI &+) ELOOLRQ RQ DQ DQQXDOL]HG EDVLV DQG PRUH WKDQ HPSOR\HHV WKLV WDNHRYHU PDNHV D VLJQLͤFDQW FRQWULEXWLRQ LQ EULQJLQJ 6LND WR WKH QH[W level of growth. The new 2023 growth strategy was launched and publicly XQYHLOHG LQ 2FWREHU 7KH VWUDWHJLF WDUJHWV LQFOXGH DQQXDO JURZWK LQ ORFDO FXUUHQFLHV RI ̰ DQG DQ LQFUHDVHG (%,7 PDUJLQ WDUJHW RI ̰ ZKLFK LV WR EH DFKLHYHG IURP RQZDUG ,Q DGGLWLRQ WR WKHVH DPELWLRXV ͤQDQFLDO WDUJHWV WKH PRVW LPSRUWDQW elements of the company’s new strategic direction include the LQWURGXFWLRQ RI DQ HLJKWK 7DUJHW 0DUNHW %XLOGLQJ )LQLVKLQJ D IRFXV RQ RSHUDWLRQDO HͦFLHQF\ DQG WKH WDUJHWHG RULHQWDWLRQ RI WKH *URXS toward sustainability. Sika wins Swiss technology award for innovation ,Q 6LND ODXQFKHG DURXQG LPSRUWDQW QHZ SURGXFWV DQG FRQͤUPHG LWV LQQRYDWLRQ OHDGHUVKLS )RU H[DPSOH QHZ VXVWDLQDEOH solutions with improved performance have been developed in the DUHDV RI ORZ HPLVVLRQ HSR[\ UHVLQ ͥRRU FRDWLQJV DQG KHPS EDVHG cement-free mortars. Sika has also been making progress with new concepts for future building, such as modular construction and 3-D FRQFUHWH SULQWLQJ $W WKH HQG RI 6LND ZRQ WKH 6ZLVV 7HFKQRORJ\ $ZDUG LQ WKH ,QQRYDWLRQ /HDGHUV FDWHJRU\ IRU D JURXQG EUHDNLQJ new adhesive technology. SikaForce ® 3RZHUͥH[ ZKLFK FRPELQHV the properties of elastic and high-strength structural adhesives in a single product, enables manufacturers of cars, rail vehicles, buses, and trucks to implement new, lighter, more ecological vehicle

FRQFHSWV ZKLOH PDLQWDLQLQJ ERG\ VWLIIQHVV JRRG HODVWLFLW\ ̰ DQG thus ideal mechanical properties. Growth in all regions In a challenging market environment, Sika has grown more strongly than the market in all regions. The EMEA region (Europe, Middle East, Africa) reported a VDOHV LQFUHDVH LQ ORFDO FXUUHQF\ RI LQ DPRXQWLQJ WR &+) PLOOLRQ $ VWURQJ GHYHORSPHQW ZDV VHHQ ZLWK GRXEOH GLJLW growth rates in Africa and high single-digit growth in Eastern Europe. In Belarus, Sika acquired Belineco, a specialist manufacturer of polyurethane foam systems. In Romania, the company agreed to acquire Adeplast, a leading manufacturer of mortar products and thermal insulation solutions. This deal is expected to close in the ͤUVW TXDUWHU RI 3URGXFWLRQ FDSDFLW\ ZDV H[SDQGHG LQ (J\SW 4DWDU 6HUELD 6HQHJDO &DPHURRQ DQG (WKLRSLD ZLWK QHZ IDFWRULHV opened for concrete admixtures and mortars. The Americas region continued to focus its business activities on the largest metropolitan areas and generated impressive sales JURZWK LQ ORFDO FXUUHQF\ RI LQ DPRXQWLQJ WR &+) PLOOLRQ *URZWK PRPHQWXP ZDV SDUWLFXODUO\ SURQRXQFHG in North America. In Latin America, political tensions in countries such as Mexico, Chile, and Ecuador, are leaving their mark on local construction industries. Brazil, Colombia, and Peru all posted strong growth rates. In Canada, the acquisition of King Packaged Materials in the reporting period brought a market leader in concrete repair systems into the Group. *URZWK LQ WKH $VLD 3DFLͤF UHJLRQ LQ ORFDO FXUUHQF\ UHDFKHG DPRXQWLQJ WR &+) PLOOLRQ 7KLV ͤJXUH LQFOXGHV D VLJQLͤFDQW DFTXLVLWLRQ HIIHFW RI LQ SDUWLFXODU GHULYLQJ IURP WKH 3DUH[ acquisition. The highest organic growth rates were recorded in China, India, and the Philippines. In China, Sika acquired Crevo-Hengxin, a manufacturer of silicon-based sealants and adhesives. The newly acquired range of products opens up cross-selling opportunities in the extended distribution channels. Furthermore, a new factory in the Bekasi district on the outskirts of Jakarta commenced operations in Indonesia in the reporting period. Sika now produces concrete admixtures and mortar products for the local construction market in three factories. The Global Business segment recorded a growth rate in ORFDO FXUUHQF\ RI ZLWK VDOHV DPRXQWLQJ WR &+) PLOOLRQ 6LND JDLQHG IXUWKHU PDUNHW VKDUH LQ WKH DXWRPRWLYH DUHD LQ GHVSLWH WKH VKDUS GHFOLQH LQ JOREDO SURGXFWLRQ ͤJXUHV LQ WKLV VHFWRU

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CONSTRUCTION WORLD APRIL 2020