Media Releases 2021

On January 25, 2022, an extraordinary shareholders' meeting of Sika will be held. The Board of Directors proposes to the extraordinary general meeting to increase the existing conditional capital from currently CHF 155,893.20, corresponding to 15,589,320 registered shares with a par value of CHF 0.01 each, to CHF 187,893.20, corresponding to 18,789,320 registered shares with a par value of CHF 0.01 each and to amend the respective clause of the Articles of Association accordingly.

Sika is opening a new technology center and manufacturing plant for high-quality adhesives and sealants in Pune, a city in the federal state of Maharashtra. Developments at the new R&D laboratories and the production in the new plant are aimed at meeting the rapidly growing demand in the Indian market. On its three new production lines, Sika mainly manufactures products for the transportation, construction, and renewable energy sectors.

By opening a new mortar production facility in Jiaxing City, in the province of Zhejiang in Eastern China, Sika has further expanded its production capacity in the rapidly growing Chinese construction market. The commissioning of the new facility is Sika’s response to high demand in the region. At the same time, this step guarantees optimized logistics, shorter transportation routes for raw materials and finished goods, and a reduction in CO2 emissions.

▪ MBCC Group is one of the most recognized companies in construction chemicals worldwide with sales of approximately CHF 2.9 billion (EUR 2.7 billion)
▪ Enterprise value of CHF 5.5 billion represents a 11.5x EV/pro forma 2022E EBITDA multiple with expected annual synergies of CHF 160 – 180 million bringing the multiple down to 8.5x EV/EBITDA
▪ Transaction is highly complementary across almost all of Sika’s core technologies, applications, and solutions
▪ Acquisition is accretive to Sika’s earnings per share from the first full year post closing
▪ The combined company will drive the sustainability transformation of the construction industry further and faster
▪ Transaction is subject to regulatory approval, but Sika is confident that all required clearances will be obtained. Closing targeted for the second half of 2022

Sika is continuing to expand its presence in Africa and has established a new national subsidiary in Ghana. By adding this latest company to its network, Sika is taking a further step towards implementing its growth strategy in Africa. With more than 30 million inhabitants, Ghana is West Africa’s second most populous country. Thanks to strong cocoa exports and a wealth of natural resources, its economy is flourishing. The country’s growing construction market gives Sika the opportunity to contribute to its economic development.

▪ Sales up by 18.1% in local currencies, sales of CHF 6,862.7 million (+18.2% in CHF)
▪ Operating profit (EBIT) at CHF 1,054.0 million (+32.2%), EBIT margin at 15.4%
▪ 7 acquisitions realized to date: Kreps (Russia), DriTac (USA), BR Massa (Brazil), Hamatite (Japan), American Hydrotech (USA), Bexel (Mexico), and Landun (China)
▪ Change in Group Management with Patricia Heidtman as new Chief Innovation and Sustainability Officer
▪ Outlook for 2021 confirmed: expected growth in local currencies: 13–17%; over-proportional increase in EBIT, EBIT margin to reach 15% for the first time
▪ Confirmation of 2023 strategic targets for sustainable, profitable growth

Sika recommends the election of Lucrèce Foufopoulos-De Ridder to the Board of Directors at the next Annual General Meeting, to be held on April 12, 2022.

At the Sika Capital Markets Day 2021 being held in Zurich today, CEO Thomas Hasler confirms the strategic targets 2023. Under the motto: "Sika as Enabler for a Sustainable Construction Industry", members of Group Management and Sika experts demonstrate the groundbreaking Sika concrete recycling process at a test facility in Zurich. The new reCO2ver concept can be considered a breakthrough in concrete recycling and has the potential to significantly contribute to a more sustainable and circular economy. Furthermore, Sika demonstrates how to further drive the decarbonization of the construction industry, and how innovations meet the challenges of tomorrow.

Sika acquires Shenzhen Landun Holding Co., Ltd., a manufacturer of waterproofing systems in China. The company offers a comprehensive range of waterproofing products and technologies, perfectly complementing Sika’s existing portfolio. The combined offering will provide new growth opportunities in the fast-growing Chinese waterproofing market.

Sika has agreed to sell its European industrial coatings business, based in Germany, to The Sherwin-Williams Company, the US-based global leader in paints and coatings. In 2020, the business segment generated sales of approximately CHF 75 million. The transaction is expected to close in the beginning of 2022.