• Sales growth of 11.0% in local currencies to CHF 1,554.0 million (+11.9% in CHF)
  • Growth in all regions
  • Organization geared to growth and enhanced efficiency with the new Americas andGlobal Business regions
  • Opening of a new factory, establishment of another national subsidiary and acquisitionof one company
  • Sales target of CHF 7 billion in 2018

With a dynamic start to the 2018 financial year, Sika maintained its strong growth trajectory,achieving double‐digit sales growth in the first quarter and a new sales record of CHF 1,554.0million. This equates to an increase of 11.0% in local currencies (previous year: 10.7%). A positivecurrency effect (0.9%) led to robust sales growth in Swiss francs of 11.9%. Sika’s growth was alsopositively impacted by the consolidation of the seven companies acquired last year (acquisitioneffect: 6.3%). When compared to 2017, the fact that the Easter holiday period fell early this yearhad a negative impact on organic growth in the first quarter of 2018.

 

Paul Schuler, CEO: “The good development of business in the first quarter indicates that we willbe able to grow strongly once again in 2018, and to further implement our strategic targets for2020. We are looking to increase sales by more than 10% for the year as a whole, and therebybreak through the CHF 7 billion sales mark for the first time.”

GROWTH IN ALL REGIONS

In the EMEA region (Europe, Middle East, Africa) sales increased by 10.2% (previous year: 12.4%).The major EU countries with the core markets of Spain and the UK also exhibited growth. TheMiddle East, Eastern Europe and Africa delivered very impressive growth rates. In the beginningof 2018, Sika acquired Index Construction Systems and Products, a leading manufacturer ofroofing and waterproofing systems headquartered close to Verona, Italy. By acquiring Index, Sikawill extend its product range and significantly strengthen its position in the Italian market.

 

The newly formed Americas region generated growth of 12.2% (previous year: 14.0%), of which5.5% was achieved through acquisitions. The harsh North American winter led to thepostponement of numerous large projects. Mexico and Argentina continue to exhibit aboveaveragedevelopment. The basis for further growth in Central America was laid with theestablishment of a new national subsidiary in Honduras.

 

Growth in the Asia/Pacific region amounted to 3.9% (previous year: 7.1%). The highest growthrates were recorded by India, Australia and New Zealand. China and Japan also contributed togrowth in this region. In Vietnam, a state‐of‐the‐art facility for mortar production has come onstream in the Bac Ninh plant alongside the existing production of concrete admixtures. This willenable Sika to continue its dynamic growth in this country’s booming construction market.

 

The new Global Business segment recorded a growth rate of 20.9% (previous year: 3.3%). Amongother things, this includes the globally managed automotive business as well as the twoacquisitions Axson Technologies and Faist ChemTec – which are both established providers ofcomponents and solutions for the automotive area and also managed globally.

OUTLOOK: SALES TARGET OF CHF 7 BILLION IN 2018

The strong start to the year supports the target for the 2018 financial year – namely an increasein sales of more than 10% to reach CHF 7 billion for the first time. Volatile and rising raw materialprices continue to pose a challenge. For the year as a whole, EBIT and net profit should onceagain increase at a disproportionately high rate. The growth strategy will be continued in 2018with the opening of eight new factories and the founding of more national subsidiaries. Inaddition, Sika will seek to fully exploit the business potential offered by acquisitions throughenhanced distribution channels, expanded product portfolios and improved prospects for marketaccess.

FINANCIAL CALENDAR

50th Annual General Meeting Tuesday, April 17, 2018, 1.00 p.m.

Half‐Year Report 2018 Thursday, July 26, 2018

Results first nine months 2018 Thursday, October 25, 2018

Net sales 2018 Tuesday, January 8, 2019

Full‐Year Results 2018 Friday, February 22, 2019

51st Annual General Meeting Tuesday, April 9, 2019