Slides
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SIKA GENERATES GROWTH IN Q1 DESPITE UNPREDICTABLE MARKETS AND CONTINUES INVESTING WORLDWIDE SIKA COMPANY PRESENTATION JULY 2025
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HIGHLIGHTS IN THE FIRST MONTHS OF 2025
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▪ Growth in local currencies of +1.9% (growth in CHF: +1.1%) ▪ Q1 sales of CHF 2,678.3 million (previous year: CHF 2,648.0 million) ▪ Organic growth of 0.9% ▪ Acquisition effect of 1.0% ▪ Targeted investment in future growth • Acquisition of Elmich (Singapore), Cromar (UK), and HPS (USA) • Opening of new factories in Singapore, Xi’an (China), Quito (Ecuador), and Ust-Kamenogorsk (Kazakhstan) • Joint Venture with Sulzer (Switzerland) and Investment in Giatec (Canada) 3 SIKA IS GENERATING GROWTH IN Q1 AND INVESTING WORLDWIDE ORGANIC GROWTH OF 0.9% – ACQUISITION EFFECT OF 1.0%
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SIKA IS GENERATING GROWTH IN Q1 AND INVESTING WORLDWIDE ORGANIC GROWTH OF 0.9% – ACQUISITION EFFECT OF 1.0% 4 +4.9 % AMERICAS +0.7 % EMEA 0.93 1.20 +0.0 % Asia/Pacific 0.54 +1.9 % GROUP 2.68 Q1 2024 (in CHF billion, growth in LC) Q1 2025
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TARGETED INVESTMENTS IN FUTURE GROWTH KEY INVESTMENTS IN 2025 5 New plants in Singapore, China, Ecuador, Kazakhstan, Brazil and Marocco ▪ Singapore plant: production of mortars ▪ China plants: tile adhesives, cementitious waterproofing, and flooring solutions; advanced bonding and sealing solutions ▪ Ecuador plant: mortar solutions, and tile adhesives ▪ Kazakhstan plant: concrete admixtures and mortars ▪ Brazil plant: admixture production ▪ Morocco plant: admixtures and mortars Acquisitions in Singapore, United Kingdom, North America and Katar ▪ Elmich Pte Ltd (February 2025): Innovative and sustainable green roof solutions ▪ Cromar Building Products (March 2025): Leading provider of flat and pitched roofing products ▪ HPS North America, Inc. (March 2025): Building Finishing Materials including self- leveling and waterproofing solutions ▪ Gulf Additive Factory LLC (June 2025): High quality solutions, including concrete admixtures, mortars, flooring, waterproofing, and facade systems Investment and Joint Venture in Canada and Switzerland (June 2025) ▪ Sika and Sulzer (June 2025): Joint venture to advance plastics recycling in the construction industry. Pilot projects to commence in Germany, Austria, and Switzerland ▪ Giatec Scientific Inc. (June 2025): Global leader in digital concrete technology platforms specializing in smart testing and AI-driven solutions to optimize concrete quality, durability, and sustainability
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CONSISTENT STRATEGY EXECUTION
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HIGHLIGHTS 2024 CONTINUATION OF STRONG GROWTH/PROFITABILITY INCREASE OF LAST YEARS 7
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STRATEGY 2028 FIRST YEAR OF SUCCESSFUL EXECUTION 8
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9 4.0% 4.6% 6.3% 6.8% 3.3% -3.8% 15.1% 13.1% 1.2% 1.1% 4.0% 1.9% 4.0% 4.3% -0.5% -3.7% 12.7% 13.2% -3.1% -0.9% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Sika Peers Sika vs Peers, Organic Growth pre-Covid 2015 – 2019 Sika vs Peers, Organic Growth 2021 – 2024 Average Organic Growth difference per year 2.2% Average Organic Growth difference per year 2.2% SIKA CONSTANTLY GAINING MARKET SHARE OVER THE YEARS OUTGROWING ITS PEERS
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TARGET MARKETS – FOCUS ON ATTRACTIVE MARKETS SOLUTIONS, LIFE-CYCLE MANAGEMENT, ONE STRONG BRAND Concrete Flooring & Coating Waterproofing Sealing & Bonding Roofing Engineered Refurbishment Building Finishing Industry ~ 15% of total sales ~10% of total sales ~15% of total sales ~20% of total sales ~10% of total sales ~10% of total sales ~15% of total sales~10% of total sales 10
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BALANCED BUSINESS MIX STRONG CROSS-SELLING INTO VERTICAL MARKETS 11 RESIDENTIAL INFRASTRUCTURE COMMERCIAL AUTOMOTIVE & INDUSTRY 20% 35% 30% 15%
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SIKA’S EXCEPTIONAL ACQUISITION HISTORY M&A FUNNEL FROM 2020 TO 2024 # of companies in M&A funnel * excluding large acquisition (MBCC) 12 16 acquisitions completed of which 15 bolt-on acquisitions with CHF 50 million sales on average* ~60
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SUCCESSFUL INTEGRATION OF MBCC SYNERGY GENERATION WITH EXCEPTIONAL PROGRESS Additional MBCC in AMERICAS ~2,000 PEOPLE 23 PLANTS Additional MBCC in ASIA/PACIFIC ~1,600 PEOPLE 36 PLANTS Additional MBCC in EMEA ~2,500 PEOPLE 38 PLANTS Note: Highlighted countries refer to all acquired business activities 2023 Dec 2024 2025 2026 MBCC Synergies (in CHF mn) 125 140 to 160 180 to 200 41 13 2024
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STRONG BUSINESS EXECUTION GLOBAL SOLUTIONS FOR INFRASTRUCTURE AND DATACENTERS 14 Solutions for critical Infrastructure projects With length of 2.5 km, longest cable-stayed bridge in North America Solutions for Datacenters CHF 810 billion data center investment globally by 2028 Focus on speed, quality, and carbon footprint Gordie Howe International Bridge, USA and Canada M2 Highway, Montenegro 16 tunnels and 20 bridges on a 41 km long highway section Thames Tideway Tunnel, UK 95% reduction of sewage pollution into the River Thames
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STRONG BUSINESS EXECUTION INNOVATION POWER 15 Concrete Recycling ▪ A total of 500 million m3 of fresh concrete discarded every year ▪ Innovative admixtures that simplify recycling Sika Fibers for Reinforced Concrete ▪ Higher durability and longer life cycle of concrete ▪ Best practice for reducing CO2 emissions* Self -healing Membrane for Modern Flat Roofs ▪ Membrane automatically seals damages when exposed to water, ensuring long-term waterproofing ▪ Higher lifespan, longer lifecycle *Avoided Emissions Initiative led by the World Business Council for Sustainable Development (WBCSD)
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Cement -free Tile Adhesives ▪ Quick and easy to apply, increased efficiency on job site and improved health & safety for applicator ▪ 50% lower carbon footprint STRONG BUSINESS EXECUTION INNOVATION POWER 16 Conductive Flooring Systems for Protection of Sensitive Equipment ▪ Sika conductive flooring systems eliminate transfer of electrical charge to sensitive electrical and electronic equipment ▪ Prevent damages to microelectronic parts
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OUTLOOK
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▪ Sika confirms the outlook, but points to increased market uncertainties arising from potentially prolonged trade conflicts ▪ For 2025, Sika expects sales growth in local currencies of 3-6% ▪ Over-proportional increase in EBITDA and expansion of EBITDA-margin to 19.5%-19.8% ▪ Confirmation of 2028 strategic mid-term targets for sustainable, profitable growth OUTLOOK CONFIRMATION OF 2028 STRATEGIC TARGETS 18 3-6% 2025 expected sales growth in LC
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