SUCCESSFUL STRATEGY EXECUTION CONTINUING

Transcription

1 We are innovation(tbd) Motto und Bild austauschen SUCCESSFUL STRATEGY EXECUTION CONTINUING SIKA INVESTORS AND MEDIA DAY, JUNE 24, 2015 JAN JENISCH, CEO

2 1. HIGH OPERATING SPEED IN 2015

3 HIGHLIGHTS 2015 Q growth of 5.1% despite exceptionally strong Q1/2014 (+23.3%) Real CHF growth of -0.9% due to negative translation effects All regions contributing to Q1 growth - North America, Latin America double digit 4 new production plants in UAE, Sri Lanka, La Réunion, Paraguay New company in Myanmar country no. 91 with own Sika operations 4 acquisitions with CHF 108 million annualized sales Promising run rates for growth and margins for full year

4 2. SIKA S STRATEGY 2018

5 STRATEGY 2018: SIKA S GROWTH MODEL IS DELIVERING MARKET PENETRATION INNOVATION EMERGING MARKETS ACQUISITIONS VALUES 6-8% GROWTH PER YEAR 42% - 45% OF SALES IN EMERGING MARKETS > 10% OPERATING PROFIT > 6% OPERATING FREE CASH FLOW > 20% RETURN ON CAPITAL EMPLOYED 5

6 STRATEGY 2018: SIKA S GROWTH MODEL IS DELIVERING MARKET PENETRATION INNOVATION EMERGING MARKETS ACQUISITIONS VALUES 6-8% GROWTH PER YEAR 42% - 45% OF SALES IN EMERGING MARKETS > 10% OPERATING PROFIT > 6% OPERATING FREE CASH FLOW > 20% RETURN ON CAPITAL EMPLOYED 6

7 MEGATRENDS DRIVE OUR GROWTH: URBANIZATION, NEW VEHICLE DESIGN & SUSTAINABILITY Higher demand for infrastructure and refurbishment solutions Increasing world population with urbanization and megacities Increased safety, fire, water, earthquake and quality requirements Rising demand for high performance concrete, sealing and waterproofing Sustainability: Increasing demand for safe-to-use and low-emission products New vehicle design with material mix requires bonding solutions 7 New modular vehicle manufacturing concepts need fast, high strength bonding systems

8 SIKA IS ACTIVE IN ATTRACTIVE MARKETS WITH CORE COMPETENCIES IN BONDING, SEALING, DAMPING, REINFORCING AND PROTECTING Concrete Waterproofing Roofing Flooring & Coating Sealing & Bonding Refurbishment Industry 8

9 URBANIZATION AND SUSTAINABILITY LIQUID ROOF MEMBRANES FOR URBAN CENTERS Sikalastic Evercoat Zero-1 A MAJOR SUCCESS IN JAPAN S CITIES DUE TO FASTER AND EASIER APPLICATION TIME Sikalastic -641 ODORLESS LIQUID ROOF MEMBRANES AS REQUIREMENT FOR URBAN DENSELY POPULATED CENTERS GLOBAL LAUNCH IN 2015 WITH MAJOR POTENTIAL IN MEGACITIES WITH HIGH-LEVEL OF NEW-BUILD AND REFURBISHMENT ACTIVITY ECOFRFRIENDLY VOC-FREE, ONE COMPONENT LIQUID MEMBRANE 9

10 URBANIZATION AND HIGHRISE BUILDINGS HIGH PERFORMANCE CONCRETE, EARTHQUAKE RESISTENCY, SAFETY Tokyo Sky Tree Second tallest building after Burj Khalifa (Dubai) at 634 meters Only 6 months of construction time (2012) Concrete volume: m ³ Sika s high performance superplasticizers: high pumpability/flowability of concrete during filling and fast initial strength development for continuous construction process Increased safety and earthquake resistance 10

11 MARKET PENETRATION: SIKA AMONG BEST SWISS BRANDS BRAND VALUE INCREASE: +78% 11

12 MARKET PENETRATION: BRAND AWARENESS INCREASE «WE ARE SIKA» AD CAMPAIGN CONCRETE SEALING & BONDING WATERPROOFING REFURBISHMENT ROOFING INDUSTRY FLOORING

13 STRATEGY 2018: SIKA S GROWTH MODEL IS DELIVERING MARKET PENETRATION INNOVATION EMERGING MARKETS ACQUISITIONS VALUES 6-8% GROWTH PER YEAR 42% - 45% OF SALES IN EMERGING MARKETS > 10% OPERATING PROFIT > 6% OPERATING FREE CASH FLOW > 20% RETURN ON CAPITAL EMPLOYED 13

14 WE ARE INNOVATION SIKA KEY FACTS AND FIGURES Patents were filed for in 2014 Employees are dedicated to Research and Development Invention disclosures in 2014 Technology Centers world-wide 14

15 INNOVATION AS A KEY DRIVER REFURBISHMENT NEW LEVEL OF SUSTAINABILITY IN TILE ADHESIVES SIKA S NEW HIGH PERFORMANCE TILE ADHESIVE OFFERS A CONSIDERABLY LOWER CONSUMPTION RATE SikaCeram COMBINES COST EFFECTIVENESS WITH ECO-EFFICIENCY SikaCeram -290 StarLight FOR 80% HIGHER COVERAGE WITH SUSTAINABLE RAW MATERIALS ACCOUNTING FOR 50% OF ITS CONSTITUTENTS, IT HAS ACHEIVED AN EC1 PLUS RATING 15

16 INNOVATION AS A KEY DRIVER CONCRETE INCREASED WORKABILITY TIME A NEW SUBSTANCE THAT PERMITS THE TIME-DEPENDENT CONTROL OF CONCRETE CONSISTENCY > 8 HOURS WORKABILITY Sika ViscoFlow ADMIXTURE FOR CONTROLLABLE CONCRETE WORKABILITY TIMES MEETING THE CHALLENGES OF CONSTRUCTION IN URBAN ENVIRONMENTS ALLOWING LONG TRANSPORTABILITY COUPLED WITH SHORT SETTING TIMES 16

17 INNOVATION AS A KEY DRIVER AUTOMOTIVE THE NEXT GENERATION IN VEHICLE BONDING LIGHTWEIGHT CONSTRUCTION AND MULTI-MATERIAL DESIGN ARE THE MEGATRENDS IN THE AUTOMOTIVE INDUSTRY SikaPower ADHESIVES COMBINE HIGH STRENGTH AND ELASTICITY IDEAL FOR CONTEMPORARY AUTOMOTIVE MANUFACTURING ADHESIVE BONDING IS BECOMING THE SUPREME JOINING TECHNOLOGY AND A KEY ROLE IS PLAYED BY SikaPower EVERY YEAR SikaPower ADHESIVES MAKE 20 MILLION CARS SAFER AND MORE STABLE > 40% SALES GROWTH EVERY YEAR LAST 3 YEARS 17

18 STRATEGY 2018: SIKA S GROWTH MODEL IS DELIVERING MARKET PENETRATION INNOVATION EMERGING MARKETS ACQUISITIONS VALUES 6-8% GROWTH PER YEAR 42% - 45% OF SALES IN EMERGING MARKETS > 10% OPERATING PROFIT > 6% OPERATING FREE CASH FLOW > 20% RETURN ON CAPITAL EMPLOYED 18

19 EMERGING MARKETS BUILD-UP SINCE % 14 37% New plants opened Average sales growth New countries of turnover in Emerging Markets 19

20 CONTINUING HIGH OPERATING SPEED INVESTMENTS AND NEW SUBSIDIARIES IN 2015 Opening of Sika plants: 2 nd plant in UAE (Dubai, March 2015) 1 st plant on Reunion Island (March 2015) 1 st plant in Sri Lanka (Ekala, March 2015) 1 st plant in Paraguay (Asunción, May 2015) New subsidiary: Myanmar (March 2015) UAE REUNION ISLAND 20

21 ACCELERATED BUILD-UP: EXPAMPLE AFRICA FROM 8 TO 14 SUBSIDIARIES IN THE LAST THREE YEARS Tunisia Foundation years of Sika companies: Algeria (1947) Angola (2010) Algeria Egypt Tunisia (1958) Kenya (2013) Morocco (1979) Mauritius (1981) Ivory Coast (2014) Nigeria (2014) Côte d Ivoire Nigeria Kenya La Réunion (1981) Namibia (2014) South Africa (1984) Botswana (2014) Egypt (1985) Mozambique (2014) Angola Namibia Botswana Mauritius La Réunion 21

22 ACCELERATED BUILD-UP: EXPAMPLE AFRICA FROM 7 TO 14 FACTORIES IN THE LAST THREE YEARS Tunisia Number of factories and employees Sika factories opened in the last three years Algeria: 1 factory, 108 employees Tunisia: 1 factory, 60 employees Morocco: 1 factory, 94 employees Mauritius: 1 factory, 40 employees Algeria Egypt South Africa: 2 factories, 184 employees Egypt: 2 factories, 174 employees Kenya: 1 factory, 27 employees Côte d Ivoire Nigeria Kenya Mozambique: 1 factory, 27 employees La Réunion: 1 factory, 20 employees Angola: 1 factory, 17 employees Ivory Coast: 1 factory*, 16 employees** Nigeria: 1 factory*, 20 employees** 22 * Under construction ** Planned number of employees Angola Namibia Botswana Mauritius La Réunion

23 AFRICA STRATEGY PRIORITIES Africa strategy on track for success + 18% sales increase in first quarter of 2015 Further subsidiaries and factories planned Market leadership Doubling of sales within the next five years Knowledge transfer Development and advancement of local employees Social responsibility Support for local communities via social and environmental projects 23

24 STRATEGY 2018: SIKA S GROWTH MODEL IS DELIVERING MARKET PENETRATION INNOVATION EMERGING MARKETS ACQUISITIONS VALUES 6-8% GROWTH PER YEAR 42% - 45% OF SALES IN EMERGING MARKETS > 10% OPERATING PROFIT > 6% OPERATING FREE CASH FLOW > 20% RETURN ON CAPITAL EMPLOYED 24

25 25 ACQUISITIONS: SINCE In all 7 In all 4 Acquisitions million turnover Target Markets regions

26 CONTINUING HIGH OPERATING SPEED ACQUISITIONS IN 2015 Company Country Target Market Duro-Moza Mozambique Refurbishment BMI USA Refurbishment, Flooring Axson Technologies Global Industry CTA Australia Refurbishment 26 Axson Technologies

27 STRATEGY 2018: SIKA S GROWTH MODEL IS DELIVERING MARKET PENETRATION INNOVATION EMERGING MARKETS ACQUISITIONS VALUES 6-8% GROWTH PER YEAR 42% - 45% OF SALES IN EMERGING MARKETS > 10% OPERATING PROFIT > 6% OPERATING FREE CASH FLOW > 20% RETURN ON CAPITAL EMPLOYED 27

28 SIKA S VALUES AND PRINCIPLES Customer first Courage for innovation Sustainability & Integrity Empowerment and Respect Manage for results 28

29 STRATEGY 2018: SIKA S GROWTH MODEL IS DELIVERING MARKET PENETRATION INNOVATION EMERGING MARKETS ACQUISITIONS VALUES 6-8% GROWTH PER YEAR 42% - 45% OF SALES IN EMERGING MARKETS > 10% OPERATING PROFIT > 6% OPERATING FREE CASH FLOW > 20% RETURN ON CAPITAL EMPLOYED 29

30 3. OUTLOOK 2015

31 OUTLOOK BUSINESS DEVELOPMENT IN THE CURRENT YEAR Sales growth expectations of 6-8% at constant exchange rates Continued build-up of growth markets with 7-9 new factories and 3-5 acquisitions Solid growth drivers in the Middle East and Africa Europe expected to stagnate USA with strong growth trend Strong growth expected in Asia and Latin America, with uncertainties in some markets Growth in China expected to be slower The appreciation of CHF is a challenge Low crude oil prices will result in lower raw material costs Expecting slight improvements on the margins for business year 2015 UNKNOWN OUTCOME OF SAINT-GOBAIN S HOSTILE TAKEOVER ATTEMPT 31