SEIKA-High performance superplasticiser

7/23/2019 SEIKA-High performance superplasticiser

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Product Data SheetEdition 19.01.2007Revision no: 0Identification no:01 01 01 01 200 0 000331Sika ViscoCrete-PC 10

1 1/3

Co

nstruct

ion

Sika ViscoCrete-PC 10

SikaViscoCrete

-PC 10

High performance superplasticiser

ProductDescription

SikaViscoCrete

-PC 10 is a third generation superplasticiser for concrete and

mortar.

Uses SikaViscoCrete

-PC 10 is especially suitable for the production of concrete mixes

which require high early strength development, powerful water reduction andexcellent flowability.

SikaViscoCrete

-PC 10 is mainly used for the following applications:

n Precast concrete

n Fast track concrete

n In situ concrete requiring fast stripping time

n Self Compacting Concrete (SCC)

Characteristics /Advantages

SikaViscoCrete

-PC 10 as a powerful superplasticiser acts by different

mechanisms.

Through surface adsorption and sterical effects separating the binder particles thefollowing properties are achieved:

n Pronounced increase in the early strength development, resulting in veryeconomic stripping times for precast and in situ concrete

n Extremely powerful water reduction, resulting in high density, high strengthand reduced permeability for water etc.

n Excellent plasticising effect, resulting in improved flowability, placing andcompacting behaviour.

n Reduced energy cost for steam cured precast elements

n Especially suitable for the production of Self Compacting Concrete (SCC)

n Improved shrinkage and creep behaviour

n Reduced closure times for repairs of roads and runways

SikaViscoCrete

-PC 10 does not contain chlorids or other ingredients promoting

corrosion of steel reinforcement. It is therefore suitable for reinforced andprestressed steel.

Tests

Approval/ Standarts Conforms to the requirements of TS EN 934 - 2, Table 3.1 / 3.2.


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2 2/3Sika ViscoCrete-PC 10

Product Data

Form

Appearance / Colours Light brownish liquid

Packaging 200 kg drumsBulk supply on demand

StorageStorage Conditions /Shelf -Life

12 months from date of production if stored properly in original, unopenedpackaging, at temperatures between +5C and +35C. Protect from direct sunlightand frost.

Technical Data

Chemical Base Modified polycarboxylates based polymer

Density 1.090,02 kg/l, at 20C

pH Value 3 7

Soluble in WaterChloride Ion Content %

w/w

Max 0,1%, Chloride-free (TS EN 934-2)

Effect on Setting Non-retarding

Effect of Overdosing Bleeding may occur

SystemInformation

Application Details

Consumption / Dosage Recommended dosage:

n For medium workability: 0.4 1,0 % by weight of cement

n For concrete of high workability, very low water/cement ration and for selfcompacting concrete: 1.0 - 2.0% by weight of cement

When adjusting the consistency, high water retarding feature of the additive mustbe taken into account and excessive water addition to the mixture must beprevented. Before application, pre-trials are always recommended.

ApplicationConditions /Limitations

Compatibility SikaViscoCrete

-PC 10 may by combined with the following Sika Products among

other:

SikaPump

Sika

Ferrogard

-901Sikafume

SikaRapid

SikaStabilizer

SikaRetarder

Always conduct trials before combining products in specific mixes and contact ourTechnical Service Department for information about specific combinations.


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3 3/3Sika ViscoCrete-PC 10

ApplicationInstructions

Dispensing SikaViscoCrete

-PC 10 is added to the gauging water or added with it into the

concrete mixer.

Application Method /Tools

The standard rules of good concreting practice, concerning production as well asplacing, are to be followed.

Fresh concrete must be cured properly.

Notes on Application /Limitations Self compacting concrete:When using SikaViscoCrete

-PC 10 to produce self compacting concrete,

suitable mix design have to be used.

Frost:If frozen and/or if precipitation has occurred, Sika

ViscoCrete

-PC 10 may be used

after thawing slowly at room temperature and intensive mixing.

Value Base All technical data stated in this Product Data Sheet are based on laboratory tests.Actual measured data may vary due to circumstances beyond our control.

Local Restrictions Please note that as a result of specific local regulations the performance of thisproduct may vary from country to country. Please consult the local Product DataSheet for the exact description of the application fields.

Health and SafetyInformation

For information and advice on the safe handling, storage and disposal of chemicalproducts, users should refer to the most recent Material Safety Data Sheetcontaining physical, ecological, toxicological and other safety-related data.

Legal Notes The information, and, in particular, the recommendations relating to the applicationand end-use of Sika products, are given in good faith based on Sika's currentknowledge and experience of the products when properly stored, handled andapplied under normal conditions in accordance with Sikas recommendations. Inpractice, the differences in materials, substrates and actual site conditions are suchthat no warranty in respect of merchantability or of fitness for a particular purpose,nor any liability arising out of any legal relationship whatsoever, can be inferredeither from this information, or from any written recommendations, or from any other

advice offered. The user of the product must test the products suitability for theintended application and purpose. Sika reserves the right to change the propertiesof its products. The proprietary rights of third parties must be observed. All ordersare accepted subject to our current terms of sale and delivery. Users must alwaysrefer to the most recent issue of the local Product Data Sheet for the productconcerned, copies of which will be supplied on request.

Co

nstruct

ion

Sika YapKimyasallarA.!.ame$me Mah. Sanayi Cad.34899 Kaynarca Pendik&stanbul TrkiyeTel +90 216 494 19 90Faks +90 216 494 19 84www.sika.com.tr
http://www.sika.com.tr/http://www.sika.com.tr/


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Product Data SheetEdition 01/03/2013Identification no:02 13 01 01 100 0 000084Sika

ViscoCrete

10

1/3 Sika ViscoCrete10

Co

nstruct

ion

SikaViscoCrete

10

High Range Water Reducing/Superplasticising ConcreteAdmixture

ProductDescription

Sika

ViscoCrete

10 is a liquid admixture for concrete which is used as a high-range water reducer/superplasticiser. It meets the requirements of BS EN 934-2tables 3.1 & 3.2

Uses Sika

ViscoCrete

10 is a unique product that is suitable for the production ofready mixed concrete

Applications that require high quality concrete

Concrete with high water reduction to meet low w/c ratio requirements

High performance concrete

Self compacting concrete

Characteristics /Advantages

High-range water reductions resulting in higher strengths and densities

Improved consistence retention

Improved cohesion properties

Improved early and ultimate strengths

Improved rheology

Improved durability

Reduced segregation and bleeding

Reduced drying shrinkage

Reduced mix costs

Tests

Approval / Standards Conforms to the requirements of BS EN 934-2 Tables 3.1 & 3.2DoP 02 13 01 01 100 0 000084 1088, certified by Factory Production Control Body0086, Certificate 541325, and provided with the CE mark

Product Data

Form

Appearance / Colours Straw Liquid

Packaging 25 litre drum, 200 litre drum, 1000 litre IBC and Bulk Tanker

Storage Conditions /Shelf Life

12 months from date of production if stored properly in undamaged containers, in dryconditions at temperatures between +5C and +25C.Protect from direct sunlight and frost.


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Technical Data

Chemical Base Modified polycarboxylate

Density 1.06 kg/l (at +20C)

pH Value 4.2 + 1.0

Freezing Point +1C

Chloride Ion Content


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Value Base All technical data stated in this Product Data Sheet are based on laboratory tests.Actual measured data may vary due to circumstances beyond our control.

Local Restrictions Please note that as a result of specific local regulations the performance of thisproduct may vary from country to country. Please consult the local Product DataSheet for the exact description of the application fields.

Health and SafetyInformation

For information and advice on the safe handling, storage and disposal of chemicalproducts, users shall refer to the most recent Material Safety Data Sheet containingphysical, ecological, toxicological and other safety-related data.

Legal Notes The information, and, in particular, the recommendations relating to the applicationand end-use of Sika products, are given in good faith based on Sika's currentknowledge and experience of the products when properly stored, handled andapplied under normal conditions in accordance with Sikas recommendations. Inpractice, the differences in materials, substrates and actual site conditions are suchthat no warranty in respect of merchantability or of fitness for a particular purpose,nor any liability arising out of any legal relationship whatsoever, can be inferredeither from this information, or from any written recommendations, or from any otheradvice offered. The user of the product must test the products suitability for theintended application and purpose. Sika reserves the right to change the properties ofits products. The proprietary rights of third parties must be observed. All orders areaccepted subject to our current terms of sale and delivery. Users must always referto the most recent issue of the local Product Data Sheet for the product concerned,copies of which will be supplied on request.

CE Labelling EN 934-2:2009 is a candidate harmonized European Standard and fully takes intoaccount the requirements of the European Commission mandate M128. Productsrelated to concrete, mortar and grout, given under the EU Construction ProductsDirective (89/106/EEC) and intended to lead to CE marking.

CE-labelled as per Annex ZA.3, table ZA.2 conformity 2+ and fulfil the requirementsof the given mandate of the EU Construction Products Directive (89/106/CE).

Co

nstruct

ion

Sika LimitedWatchmeadWelwyn Garden CityHertfordshireAL7 1BQUnited Kingdom

Phone +44 1707 394444Telefax +44 1707 329129www.sika.co.ukemail: [email protected]

Certificate No. EMS 4308 Certificate No. FM 12504


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S IKA F INANZ AG

A N NU A L R E P OR T 19 9 9

CONCRETE TECHNOLOGY IN FLUX


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Concrete Technology in Flux

Sika is a speciality chemicals company which offers solutions to problems

in carefully defined markets in the fields of industry and construction.

Subject to this years Annual Report is the business activity Construction

Chemicals.

We are global leaders in the concrete technology sector. Through the use

of chemical additives, which we offer in conjunction with specialist con-sultancy services, the characteristics of concrete are optimised at the

processing stages and in its final state.

In the field of concrete additives, technology is taking a great leap for-

ward based on innovative polymers. Sika is one of the driving forces

behind these developments. The latest breakthrough in this sector is Sika

ViscoCrete, the technology on which Self Compacting Concrete is based.

Previously it has always been necessary to compact fresh concrete by

applying vibrations, in order for it to spread evenly in the formwork and

reinforcements, and to ensure no cavities remained in the structure. The

need for mechanical compaction restricts not just the free design of the

concrete structure, but also slows down the overall construction process.In addition, the procedure is labour-intensive, generates noise pollution

and often fails to meet the most stringent building technology standards.

With Sika ViscoCrete additives, the concrete is liquefied and compacts

itself - a genuine step forward for all concerned in terms of costs, quality

and working conditions.

What is it that enables Sika to repeatedly achieve such innovations? New

ideas are developed jointly through development partnerships entered

into with customers, universities and raw material suppliers. Our labora-

tories deploy state-of-the-art techniques, such as e.g. molecular model-

ling, to produce highly-sophisticated chemical products. These products

are subsequently field-tested with selected customers before being

launched on the market. By this means, Sika is helping to extend the

longevity of building structures, performing a valuable bridging function

between the chemicals industry and the construction sector.


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CONSTRUCTION CHEMICALS

Products and systems:

Concrete and mortar admixtures, ready foruse mortars;

elastic sealants and adhesives;

sealing systems, paints and coatings for

concrete and steel;

surfaces for industry, transport and sports;

specialist contracting services;

specialised construction equipment.

Markets:

transport infrastructure;

water and power;

health, education, leisure;

manufacturing industry;

residential, commercial and industrial

buildings, precast concrete elements.

INDUSTRIAL MATERIALS

Products and systems:

elastic adhesives and sealants; tooling resins;

flooring for commercial vehicles and ships;

acoustic products for the automotive

industry.

Markets:

transportation industry;

ship building;

building components and installations;

domestic appliances and industrial

equipment.

Construction Chemicals CHF 1256 m

including Construction Services CHF 113 m

Industrial Materials CHF 433 m

Sika is a globally-active company in the field of speciality chemicals.

Sikaflex PRO-2HP is an elastic sealant for exterior wall

joints in the field of structural engineering, as well as for

joints in the field of civil engineering . This one compo-

nent, weather- and ageing-resistant joint-sealant enables

highest performances.

The use of thermal expansion cavity baffles, SikaBaffle, acoustically seals

passenger areas. This reduces noise levels, and prevents the penetration of air,

dust and water.

Picture: Ford Focus.


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Net salesconsolidated

EBIT Groupcash flow

Groupnet profit

Investments

CHF1689m

CHF187m

CHF93m

97

98

99

CHF150m

97

98

99

97

98

99

95

96

95

96

95

96

97

98

99

CHF111m

95

96

97

98

99

95

96

Financial Highlights

1999 1998

as % of as % of

Sika Group CHF m net sales CHF m net sales

Net sales consolidated 1 689 1 572

EBITDA 242 14.3 199 12.7

EBIT 150 8.9 128 8.2Group net profit before tax 144 8.6 126 8.0

Group net profit after tax 93 5.5 79 5.0

Cashflow 1 187 11.1 155 9.9

Net capital expenditures2 111 6.6 103 6.6

Depreciation and amortisation 93 5.4 70 4.5

Balance sheet total 1 472 1 371

Consolidated group equity 815 712

Number of employees 7 044 6 964

Net sales per employee in KCHF 240 226

Turnover in tons 000 647 631

Earnings per share in CHF 35.9 30.7

Sika Finanz AG CHF m CHF m

Balance sheet total 640 729

Net profit for the year 34.1 31.8

Dividend amount 32.0 3 28.9

1 definition of cash flow see page 652 at year end exchange rates acc. to the statement of tangible fixed assets and depreciation (see page 53)3 proposal of the Board of Directors (see page 42)


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Sika Finanz AGAnnual Report 1999

The business policies of Sika Finanz AG observes the guidelines for multinational

companies laid down by the OECD. The Group financial statements are prepared

according to the International Accounting Standards (IAS).

This Annual Report is available in German and English simultaneously.

Please note that the German report is the definitive version.

Group Report

02 Report of the Chairman

of the Board

08 Information for Investors

11 Research and Development

13 Quality and Investments

14 Environmental Report

17 Employees

19 Construction Chemicals Division

23 Industry Division

26 Subsidiary Companies

28 Organisational Structure of

Sika Finanz AG and the Group

30 List of Subsidiary Companies

Sika Finanz AG Financial Statements

34 Balance Sheet36 Income Statement

37 Notes to the Financial Statements

42 Proposal of the Board of Directors

Group Financial Statements

48 Group Balance Sheet

50 Group Income Statement

57 Notes to the Group Financial Statements

69 Five-year-Review

Important Dates, Acknowledgements

Sika Finanz AG

Zugerstrasse 50

CH-6341 Baar

Phone ++41 41768 68 00

Fax ++41 41 768 68 50

E-mail [email protected]

www.sika.com

Investor Relations

Torsten WyssPhone ++41 41768 68 22

Fax ++41 41 768 68 50

E-mail [email protected]


12/1182S I K A G R O U P

During the first quarter 1999, the harsh winter

weather prevailing across much of Europe overshad-owed the otherwise robust shape of Group business.

The sales curve then increasingly began to point up-

wards as the year progressed, and in the last quarter

cumulated with a superb increase of 15.2% in Swiss

franc terms, and 12.0% in local currencies in compari-

son to the same period of the previous year.

There are geographical and divisional aspects to

the strong sales performance:

Geographic breadth and dynamic divisions

During the course of the year, Sika was able to

participate particularly effectively in the across-the-board growth in world markets. The two halves of the

year presented very different faces. While the markets

in Asia gradually began to stabilise at a low level, the

markets and currencies in Latin America and Eastern

Europe continued to contract. It was only in the last

quarter that the Group companies operating in these

regions began to free themselves from this uncom-

fortable situation. The global recovery in newly indus-

trialised countries is of particular importance to the

Group, as about 25% of its turnover is generated in

the emerging markets of Asia, Latin America, midEastern Europe, as well as Africa.

The substantial 5.5% increase in volume was at-

tributable to the unexpectedly strong performance in

Dear Shareholders

It is with particular pleasure and satisfaction thatwe present the 1999 Annual Report.

Sika takes off

For companies active in the field of speciality

chemicals, the outlook at the start of 1999 seemed

difficult and troublesome. Yet Sika nevertheless ex-

ceeded its previous record performances, and did so

by a considerable margin. The results demonstrate the

increased efficiency which has been achieved within

the framework of ongoing structural change. At the

same time, the Group kept its sights on the key long-

term growth objectives.The globally-active Group, with its focus on

Construction Chemicals and Industrial Materials,

saw net sales rise by 7.5% to reach CHF 1 689 m

(CHF 1 572 m). In local currency terms, net sales rose

8.9%. Earnings before interest, taxes, depreciation and

amortisation (EBITDA) increased by 21.7% to

CHF 242 m (CHF 199 m), and operating profit (EBIT) by

16.2% to CHF 150 m (CHF 129 m). Net profit climbed

17.7% to the record level of CHF 93 m (CHF 79 m),

which corresponds to a return on sales of 5.5%

(5.0%). Cash flow rose to CHF 187 m (CHF 155 m),amounting to 11.1% (9.9 %) of sales. Therewith Sika

has sucessfully achieved the targets set three years

ago for the business year 1999.


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Europe as well as the anticipated rise in North Amer-

ica, where the high level of investment in recent years

has created the necessary foundation.

The reason for the divisional growth is the recov-

ery in the Construction Chemicals sector during the

course of the year, in conjunction with the high level

of growth achieved on the Industrial Materials side.

After getting off to a slow start, sales of Con-

struction Chemicals saw a particularly sharp rise in

the last quarter of 12.9 %. With overall growth of

5.0%, the construction sector was able to shake off

the stagnation of the previous year (3.7%). Net sales

rose to CHF 1 256 m (CHF 1197 m), while the operat-

ing profit margin increased to 7.4% (6.5%).

Industrial Materials generated net sales of

CHF 433 m (CHF 375 m), while maintaining unbroken

growth of 15.4%. The operating profit margin was

15.8% (15.3%). The target set five years ago for the

year 2000 sales of CHF 500 m is now within reach.

Welcome rise in productivity

The gross margin (after manufacturing costs) of

48.5% (47.6%) saw further improvement. This under-

lines the competence of our buying organisation.

Global contracts boosted its effectiveness. At the same

time the margin, which had been squeezed by pricing

and other competitive pressures, was successfully

compensated by the ongoing improvements on the

productivity side. In the Group as a whole, per capita

sales were lifted by 6.2%. The European project to

bring production capacities together at certain spe-

cialised factories, which was launched in 1997 under

the project name Resin + Flex, is beginning to show

clear results. In addition, the specialisation and the

parallel increase in production capacities brought sig-

nificant economies of scale and reduced unit costs.In net terms, during the past year, we invested

CHF 111 m (CHF 103 m) in production plants. This will

secure the volume growth which is clearly set to de-

velop over the next few years. This also covers the

cost of converting to the standard business software

SAP R/3, which is being introduced at the major

European companies. Furthermore, already at an early

stage Sika introduced a range of e-business solutions,

which use electronic channels to handle business

processes. Examples include our company-wide in-

tranet, which also integrates buying and customer

information systems, as well as the electronic data

processing with our customers in the automotive

sector. The foundations for the effective use of the

new technologies have been laid, and we are devoting

considerable attention to the further expansion of our

e-business activities.

During the past year, acquisitions enabled Sika to

play an active role in the consolidation of the con-

struction chemicals market in Switzerland (Holder-

chem Euco), in Canada (Sternson) and France (Lafarge

Anticorrosion). Despite the fact that in 1999 these

acquisitions contributed less than 1% to sales, thegoodwill amortisation rose significantly to CHF 4.2 m

(CHF 0.0 m), including the partner stake in Sika Egypt

which was acquired towards the end of 1998.

On the Industrial Materials side, in December

1999 Sika Japan established a joint venture with

Hayashi Telempu Co., Ltd., a major Japanese system

supplier for the automobile industry. The objective of

the joint venture is the development, the production

and the marketing of Sika products for Japanese

automobile manufacturers in the Asia region.

Improved operating resultsDespite the fact that total depreciation rose by

CHF 22 m, EBIT rose to 8.9% (8.2%) of net sales. Ever

since its foundation, Sika Finanz AG has rigorously

applied the principle of permanent restructuring, and

has always charged these costs against ordinary oper-

ating profits. It was against this backdrop that Sika

Equipment AG, Widen, spun off its Sika Robotics Divi-

sion. This division manufactures robots and equipment

for otherwise inaccessible drains and sewers. However,

Sika continues to develop and produce products on

the Construction Chemicals side for sewer repairworks. The Aliva shotcrete machine business has been

merged and incorporated in Sika AG, Zurich, thus

enabling us to pursue a direct and more customer-

focused market development.

Report of the Chairman of the Board,Dr. Hans Peter Ming

In net terms, during the past year, we invested

CHF 111 m (CHF 103 m) in production plants. Thiswill secure the volume growth which is clearly set todevelop over the next few years.


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proven by the developments of the difficult past three

years.

We view the undermining of existing technologies

by new technology standards, ideally through our own

endeavours, as an opportunity. Innovation is and will

remain a central aspect of the speciality chemicals in-

dustry. If we fail to renew and adjust our processes,

products and systems on an ongoing basis, we would

rapidly lose our leading market position, and would

only be able to respond to increasing competitive

pressures by cutting prices. Our core activities are

bonding, sealing, insulating, reinforcing and protect-

ing new construction projects, as well as OEM indus-

trial products. An equally important component is our

focus on repair and maintenance applications. At Sika,

our engineering know-how in the fields of chemistry

and construction constitutes a successful alliance

which time and again has yielded new and unexpect-

ed fruit.

The product mix, which is continuously being up-dated, deliberately involves the cannibalisation of ex-

isting products. This leads to improved sustainability,

resulting in long-term growth.

We also place great emphasis on boosting pro-

ductivity. Some of the markets in which we operate

show only modest growth. At regular intervals we de-

cide whether we wish to play an active role in the

consolidation process, or whether to withdraw from

the market in good time.

It is from this perspective that our investments in

new technologies should be viewed. Our entry into

the sound deadening market followed thorough andpainstaking preparation. The opening of the Acoustic

Test Facility in Detroit at a cost of CHF 12 m can be

seen as a milestone in the development of Sikas auto-

mobile supplier business. The internalisation of the in-

jection moulding production of cavity seals also fal ls

under this category.

People create change

At the coming Annual General Meeting, Dr. Georg

Stucky, Baar, is to step down from the Board of Direc-

tors on grounds of age. I thank Dr. Stucky for hisdirect and upright opinions on operative issues, his

resolutely clear visions with respect to the future

direction of the company as well as for his encourage-

The Groups net profit after minority, which rose

by 21%, now corresponds to 5.4% of sales. This lifts

the basic earnings per bearer share (EPS) by 17.2% to

CHF 35.95 (CHF 30.67), and per registered share to

CHF 5.99 (CHF 5.11).

The positive overall picture is rounded off by the

increase in cash flow (net profit + depreciation +

changes of provisions) to CHF 187 m (CHF 155 m). The

relation of the net indebtedness to the shareholders

equity (gearing) amounts to 2.6%. The Group has thus

extended its scope in operative and strategic terms

with respect to the future expansion of the Group

businesses. This has also been confirmed by the inter-

national rating agency Standard & Poors, which gave

Sika the grade A-/stable an excellent rating for an

industrial company.

Dividend increase

The Board of Directors of Sika Finanz AG is once

again set to propose to the Annual General Meetingthat the dividend be increased to the new level of

21% (19%). Per bearer share this will correspond to

CHF 12.60 gross (CHF 11.40), and per registered share

CHF 2.10 gross (CHF 1.90).

Pulsating markets steady success factors

Our target markets are constantly on the move.

Technological developments continue apace. Sika has

been able to effectively protect itself against the

cyclical state of its sales markets. And by the same to-

ken, with its great innovative spirit, it has always been

open to the relentless pace of technological change.

The geographic diversification in 58 countries, the

firmly-anchored presence of the Sika Group on all

continents, represents one of the most important

foundations of our business. It enables us to be close

to our customers, and means we can meet their pre-cise requirements. Furthermore, our geographic diver-

sification reduces the risk represented by economic

downturns in individual regions. This has been amply

We view the undermining of existing technologies bynew technology standards, ideally through our own

endeavours, as an opportunity.


15/1185 S I K A G R O U P

ment of change within the framework of his commit-

ted and long-standing association with the Board of

Directors (since 1985) as well as with the Manage-

ment Committee (since 1991).

Following the resignation of Dr. Andr Richoz as

CEO in July 1999, the Board elected Dr. Walter

Grebler to head the Group with effect from 1.1. 2000.

He replaces the Chairman of the Board, who perfor-

med this role on an interim basis. The principles of

Corporate Governance require a separation between

the operative management and the work of the Board

of Directors. For this reason Walter Grebler stepped

down from the Board of Sika Finanz AG with effect

from the end of the year. He has earned our thanksand respect for his work in senior management. Our

best wishes accompany Dr. Grebler in his new role.

He brings a superb track-record of experience and

success to the post.

At the end of the year the long-standing head of

Research and Development, Dr. Claude Schnell, took

well-deserved retirement. The favourable operating

conditions and the creative climate in which the re-

search teams in Switzerland and at the additional

five technology centers in Germany, France, Japan and

the USA (Lyndhurst, N. J. and Detroit) worked and

continue to work, are achievements which he hasevery right to feel proud of. His successor, the Ameri-

can Dr. Robert Petrisko, has rapidly established himself

in his new position. We thank Claude Schnell for the

many years of fruitful work he has performed for the

Group, and wish his successor every success in the

development of new products and innovations.

My thanks go out above all to the Groups over

7 000 employees. They will never be mere objects in

the process of global change; on the contrary: the

employees are active partners in the process of

change, and their spirit is the driving force behind thesuccess of these developments. It is to you, the pillars

of the Groups success, that I extend my particular

thanks. The Group Management faced a number of

difficult challenges during the past year. They deserve

thanks and recognition for their personal commitment

and their stalwart approach to their management re-

sponsibilities in the divisions and regions.

I would also like to thank all our shareholders for

the trust they have shown in us, and the Board of

Directors for its clear opinions and forward-looking

resolutions.

Outlook

The excellent results achieved in the second half

of 1999 have provided strong momentum for Group

growth. The effects of this will last well into the new

year as the brilliant growth in the first quarter 2000

proves. The strong development in sales in the current

year is partially due to the twin underlying effects of

the first half of 1999: the weak state of the chemicals

sector in conjunction with the strong Swiss franc.

However the influence will weaken during the year

2000. A close watch will also need to be kept on thedevelopment of raw material prices. It is only through

raising overall productivity that it will be possible to

offset price trends. Nevertheless, we are not expecting

to see any fundamental changes to the favourable

economic developments in our target markets. In

overall terms, we are expecting strong internal growth

with above average earnings growth.

Yours sincerely

Dr. Hans Peter Ming

Chairman of the Board

The employees are active partners in the process ofchange, and their spirit is the driving force behind the

success of these developments.


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Marcel Smit

Region Asia/

Pac if ic

Walter Grebler

Chief Executive

Off icer

Christoph Tobler

Industr ia l Mater ia l s

Bruno Wlt i

Operat ions

Alexander Ble ibler

Construct ion

Chemicals

Group Management


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Emi l Rebmann

Finance and Control l ing

Vi ce Execut ive Of fi ce r

Peter Laeng

Region Europe, Africa,

Near and Middle East

Rober t A . Pe tr i s ko

Research and

Development

Enrico T i ss i

Region

North America

7 S I K A G R O U P


18/1188S I K A G R O U P

Information for Investors

1995 1996 1997 1998 1999

Data per share

Registered shares: Nominal value CHF 10.

Number of securities at 31/12 4 200 000 3 505 044 3 505 044 3 505 044 3 505 044

of which entitled to dividends 4 200 000 3 505 044 3 505 044 3 505 044 3 505 044

Gross dividend CHF 1.50 1.50 1.80 1.90 2.10 1

Market price:

High CHF 65 58 81 107 84

Low CHF 47 45 53 68 66

Year end CHF 47 55 79 76 81

Average daily trade volume 2 Shares traded 2 104 3 900 1 500 900 900

Securities no. 58799/Ticker symbol: SIKN (Telekurs AG), SIKZn (Reuters)

Bearer shares 3: Nominal value CHF 60.

Number of securities at 31/12 1 840 000 1 955 826 1 955 826 1 955 826 1 955 826

of which entitled to dividends 1 666 000 1 781 826 1 783 686 1 953 826 1 953 926

of which entitled to vote 1 666 000 1 781 826 1 783 686 1 953 826 1 936 126

Gross dividend CHF 9.00 9.00 10.80 11.40 12.60 1

Market price:

High CHF 406 330 500 665 540Low CHF 265 260 320 341 365

Year end CHF 280 320 464 412 520

Average daily trade volume 2 Shares traded 6 481 5 500 6 400 5 400 4 700

Securities no. 58797/ Ticker symbol: SIK (Telekurs AG), SIKZ (Reuters)

Ratios per bearer share 4

Net profit per share 5:

basic EPS CHF 18.9 24.1 31.3 30.7 35.9

diluted EPS CHF 18.9 24.1 30.5 29.9 35.9

Growth EPS % 17.8 27.4 30.1 2.0 17.2

Cash flow per share CHF 47.6 54.7 66.5 59.6 73.1

Equity per share CHF 210 239 252 276 317

Price/earnings ratio (end of year) CHF 14.8 13.3 14.8 13.4 14.5

Performance % 25.5 14.3 45.0 11.2 26.2

Dividend yield % 3.2 2.8 2.3 2.8 2.4 1

Additional information

Market capitalisation at 31/12 CHF m 662 763 1 105 1 071 1 300

in % of shareholders equity % 133 135 185 153 162

Gross dividend % 15 15 18 19 21 1

Dividend total4

CHF m 21.3 21.3 25.6 28.9 32.01

in % of group net profit (payout ratio) % 48 37 35 38 35

Free Float % 79.1 79.1 79.1 79.2 78.2

1 subject to approval of the

Annual General Meeting

2 average daily trade

volume at the stock

exchange in Zurich resp.

at the Swiss Exchange

(source:Datastream, UBS

Zurich)

3 of which Sika Finanz AG

owns in 1999 1900 (2 000)

neither entitled to divi-

dends nor to voting rights

and Sika AG 17800 not

entitled to voting rights

bearer shares (see page

40, note14).

4 excluding minority

interests, previous years

adjusted

5 for EPS calculation see

page 64 , note 34 (IAS 33)


19/118

1200

1000

800

600

400

2001995 1996 1997 1998 1999

Bearer share, nominal value CHF 60.(market price at 31/3/2000: CHF 542.)

2000

1995 1996 1997 1998 1999 2000

200

180

160

140

120

100

80

60

40

Registered share, nominal value CHF 10.(market price at 31/3/2000: CHF 89.50)

Swiss Performance Index (adjusted)

Dow Jones STOXX Chemical (Price) Index1(adjusted)

Sika-Registered/Bearer shares

(Data source: Datastream, UBS Zurich)

9 S I K A G R O U P

Transfer restrictions on shares

The acquisition of Sika shares is principally

open to all legal entities and natural persons. The

Board of Directors has the right to limit the

registration to 5 % of the registered share capital

per shareholder. Sika shares are listed on the Swiss

Exchange.

Shareholders

At 31 December 1999 1121 (1998: 1 074) share-

holders were registered. The Burkard-Schenker

family holds 52.8 % (52.6 %) of the voting

rights, partially through Schenker-Winkler Hol-

ding AG, Zug/Baar; the pension fund of the

Swiss Sika companies holds 5.9 % (5.4 %).

Credit Rating Standard & Poors

long-term: A-/stableshort-term: A-2

Market price trend of Sika Finanz AG sharesin Swiss francs

(1/1/199531/3/2000)

1 The Dow Jones STOXX Chemical Index includes shares of the following

companies: Hoechst, Bayer, BASF, Air Liquide, Akzo Nobel, Clariant,

BOC Group, ICI, Solvay, Ciba Specialty Chemicals, Henkel, Burmah

Castrol, EMS-Chemie, Laporte, AGA, Tessenderlo, Snia BPD, Kemira,

Perstorp, Dyno, Lenzing


20/118


21/11811 S I K A G R O U P

Industrial Materials: New products

On the Industrial Materials side, 1999 saw

the first successes in the field of chassis con-

struction in the automotive sector. Here we

market-launched the new Sika Power series,

which has applications in the field of steel and

aluminium bonding. This process replaces

conventional welding. The launch of the new

Automotive Linehad a positive impact on the

performance of the after market sector. This

comprises a variety of application-specific

window adhesives.

We have revised the product range for the

transportation industry and marine market

fields, introducing a number of new products.

On the transportation industry side this in-

cludes a new metal primer and a faster univer-

sal adhesive. In the marine segment we

launched a fire-retardant sealant and adhesive,

as well as a flooring product.In the USA our new Acoustic Test Facility

became operational. In close co-operation with

customers, we are using the features offered

by this Facility to measure the effectiveness of

our products on actual vehicles and compo-

nents. The results will help us to optimise our

products, and thus to increase driving comfort.

Focus for the year 2000

The focus of research for 2000 lies in

broadening our knowledge base with respect

to the new concrete additives, the environ-mentally-friendly PET-based floorings, the fast

adhesive systems for industrial and construc-

tion applications as well as the adhesives and

sealants with improved environmental impact

characteristics. Our attention will also be

directed towards the field of structural metal

bonding, as well as sound deadening and

vibration dampening products for chassis

construction in the automotive sector.

Our development activities will be concen-

trating on the further implementation of thesetechnologies in customer-focused problem

solutions. In this respect, an innovation rate

(proportion of sales attributable to products

younger than 5 years) of at least 25 % is to be

maintained.

Construction Chemicals:

Pacemaker in the field of new technology

The past business year has once again

shown that a strong, globally-based research

and development capability is the key to sus-

tainable growth in an internationally active

Group such as Sika.

On the construction chemicals side, in the

field of concrete additives, technology is taking

a great leap forward. Sika is one of the driving

forces behind this development. New cost-

effective polymers, with a low environmental

impact, are replacing conventional additives

such as lignin sulphate, naphthalene and me-

lamine derivatives. This new product technolo-

gy has a wide range of uses: from construction

concrete through specified concrete qualities

to prefabrication applications and highest-

quality Self Compacting Concrete (SCC).

Integral approach to research

The core competence in the field of poly-

mer synthesis and our broadly-based formula-

tion know-how enable Sika to assume a pace-

maker role in this new technology. In this

respect we continue to benefit from the fact

that we take a multidisciplinary and parallel

approach to projects. This means: close co-

operation between research and development,

application technology, marketing and produc-

tion. In addition to our in-house development

activities, we are also, through maintainedclose association and co-operation, able to

draw upon the specific know-how of our

suppliers. In order to secure support from

scientific quarters we have taken part in

EUREKA and BRITE EURAM projects. These are

projects promoted by the European Union.

Research institutes and companies work jointly

together within these frameworks on concrete

issues. The aim is to turn the results into mar-

ketable products as rapidly as possible. The

new, patented Sika ViscoCrete

-product tech-nology is now to be globally anchored and in-

troduced to our subsidiary companies with the

help of extensive training for local specialists.

Research andDevelopment


22/118


23/11813 S I K A G R O U P

Investments

During the year under review the Sika

Group invested a total of CHF 111 m, with

about 50 % of this being spent in Europe. In-

vestment focused primarily on increasing ca-

pacity on the Industrial Materials side, as well

as on infrastructure upgrades. In the rapidly-

expanding Eastern European countries of

Poland, Hungary, the Czech Republic and

Slovenia, the main emphasis was on increasing

the capacity of logistic facilities. Here Sika

invested CHF 10 m. The logistics centre in

Madrid, which was acquired in the previous

year, went into operation following the pro-

gramme of refurbishment. The new centre

significantly eases the pressure on existing

production and warehousing facilities.

Rapid development of the market for

elastic bondingNew production plants for adhesives were

established in the USA and Switzerland, and

these went into production in record time. The

results have far exceeded our expectations. The

extra capacities which these facilities provide

will enable us to develop the fast-growing

elastic bondingmarket even more rapidly.

Cutting-edge design and planning facilities

in the acoustics field

Sika directed more than 40 % of the invest-

ment volume towards the USA and Canada. InGrandview near Kansas, USA, the new manu-

facturing plant costing around CHF 20 m for

acoustic insulation materials was completed.

This project was started in 1998. Sika s supply

capacity for the automobile industry is now

secured for the medium term. In Montreal,

Canada, factory expansion has produced signif-

icant additional capacity. In Detroit, USA, we

opened a high-tech test centre for the acoustic

evaluation and optimisation of components,

focusing on the automobile manufacturingsector. The investment amounted to about CHF

12 m. With this service centre we are able to

offer our customers state-of-the-art design

and planning support for all acoustics-related

issues in the transportation sector.

Quality andInvestments

Waste incineration plant in

Frankfurt, Germany. The plant

was built in 1963, and renovated

in 1999. Permanent and effective

concrete protection with Sika-

gard-720 EpoCem surface coa-

ting, concrete immune system

(crack-bridging coating) andSikagard 550 W (solvent-free

protective coating in a range of

colours).

Investments 1999

Investments 1999by Region

Capacity 50%

Rationalisation 15%

Substitution 20%

Quality/Environment 15%

Asia/Pacific 6%

America 45%

Europe/Africa 49%

Investment horizon 2000

For the current business year Sika is plan-

ning to proceed with investments totalling

about CHF 120 m. The substantial investments

in capacity expansion seen in recent years

means that Sika now has sufficient resources

in this field. In the year 2000 Sika will be con-

centrating increasingly on rationalisation and

quality investments. At regional level, main fo-

cus will continue to lie on Europe and the USA.

The scaling-up of new products, for example

the new generation of concrete additives, will

account for a significant proportion of the in-

vestment volume. The specialisation of the

production centres calls for new process or-

ganisation concepts, also involving logistics.

These business processes will be supported by

the introduction of SAP R/3 in France, Italy,

Germany and Switzerland.

Quality management

The continuous improvement of the quali-

ty culture represents an ongoing task for all

employees. It is the key to success. Important

performance parameters in this respect include

the external repeat audits which are required

within the framework of ISO 9000ff. During

the period under review, 20 audits were con-

ducted in the Group world-wide, and all were

successfully passed. This demonstrates that our

quality systems conform to the high require-

ments. Venezuela and Singapore have nowalso achieved ISO certification. This means that

today over 95 % of consolidated net sales

derives from subsidiary companies which fulfil

ISO 9000ff (cf. p. 3032).

Sika is very well prepared for the chal-

lenges of the ISO standard 9000:2000. Already

today work is in progress to establish a

process-oriented management system for

quality and the environment. Examples include

the Eastern European trading companies,

which are already at an advanced stage withrespect to the introduction of a combined

management system for quality and the envi-

ronment.


24/11814S I K A G R O U P

These steady efforts have borne fruit. Last

year the Group recorded practically no inci-

dents whatsoever which would have warranted

a claim under its property insurance policies.

Yet at the same time, total production rose to

more than about 650000 t. This achievement

had a positive effect on insurance premiums,

which have fallen continually and significantly

in recent years.

Larger purchases of raw materials and fin-

ished products in foreign currencies are par-

tially hedged. No financial instruments have

been established for trading purposes.

The Group took the necessary measures at

an early stage to check all operating processes

for year 2000 compliance. At Sika, as a conse-

quence, the transition to the new millennium

passed without incident.

The goal of boosting energy efficiencyOverall energy consumption rose by 10 %

(1 %) to 610 TJ (553 TJ). This was principally

attributable to rising production levels of par-

ticularly energy-intensive adhesives and

sealants. It was above all the Sika companies in

Central Europe and North America which saw

their energy consumption rise. In global terms,

Sika drew 45% (46 %) of its energy require-

ments in the form of electricity, 38 % (35 %) in

the form of natural gas, and 17 % (18 %) in the

form of heating oil.

It remains our goal to further improve en-ergy efficiency on the production side.

ISO 14001-certification for Sika subsidiary

companies

In the past year the subsidiary companies

in Belgium, Brazil, Canada, Chile, Thailand and

Uruguay were awarded ISO 14001-certifica-

tion. This means that today over CHF 800 m or

48 % (40 %) of consolidated Group sales is ge-

nerated by the 17 subsidiary companies which

already fulfil this environmental standard.

During the year under review, Sika Plasti-

ment GmbH, Austria, was the first subsidiary to

successfully meet external repeat audits laid

down within the framework of ISO Standard

14001.

Environmental audit

Since 1992, in some 40 countries around

the world, Sika has measured its environmental

performance within the framework of the

Responsible Careprogramme established bythe chemical industry. Sika Chile, for example,

has now twice been awarded the accolade

Responsible Care to the Progress and Effort on

the Health, Security and Environment Protec-

tionby the Chilean Chemical Industry Associ-

ation.

At Sika, improvements focus above all on

waste prevention, waste recycling on the pro-

duction side as well as on the successive

switch from to products containing solvents to

water-based alternatives.

Risk management

When it comes to risk management, for

example with respect to factory safety, Sika

works closely together with the company s in-

surer. Systematic analyses help to identify the

magnitude and likelihood of risks at an early

stage. We then take concrete measures on the

basis of this information, and strictly monitor

the implementation thereof. In addition to the

ongoing Group-internal risk management pro-

gramme, last year such risk audits were per-formed in co-operation with the insurer at five

Group subsidiaries.

0

200

400

600

800

1000

95 96 97 98 99

in MJ perton sales

95 96 97 98 99

0

100

200

300

400

500

600

Energy consumption

in TJ

in CHF m

95 96 97 98 99

Expensesfor Environmentand Safety

0

2

4

6

8

10

12

14

16

95 96 97 98 99

Capital expendituresfor Environmentand Safety

in CHF m

0

2

4

6

8

10

Environmental Report


25/11815 S I K A G R O U P

Solid Waste

During the last business year the total

volume of waste increased by 1% to reach

16 630 t (16470 t). The proportion of toxic

waste remained constant year-on-year at

4 437 t (4438 t), in spite of the increased

production of high-viscous products.

The avoidance of costly toxic waste is

another of our core goals.

Safety

The number of accidents at work which re-

sulted in the loss of at least one working day

rose 20 % to 38 (31) accidents per 1000 full-

time members of staff, above all in the catego-

ry of minor accidents. The number of working

days lost saw a similar trend. The number of

working days lost per million working days in-

creased 26 % to 2089 (1 660).

In order to reduce the number of accidentsat work and working days lost, carefully tar-

geted further training programmes have been

launched. Additional programmes and meas-

ures are planned.

Sustainable company management through

investments in safety and environmental

protection

The level of investment in safety and envi-

ronmental protection rose to reach CHF 9.7 m

(CHF 5.9 m), primarily as a consequence of ex-

tensive modernisation measures at our plants.Expenditure in this field, for example for the

introduction and maintenance of ISO 14001 or

new installations designed to improve safety,

amounted to CHF 15.8 m and remained at last

years high level (CHF 15.7 m). This underlines

the degree of importance with which the

Group views this particular aspect of sustain-

able company management.

The number of full-time employees work-

ing in the field of environment and safety fell

from 61 to 56.

Emissions to air

As a consequence of the greater use of

natural gas and heating oil as energy sources

for production, emissions to air also saw a pro-

portional rise. CO2 emissions increased from

17100 t to reach 18 600 t, NOX emissions rose

from 18 t to 22 t and SO2 from 8 t to 12 t. We

adhered to the principle of deploying low-sul-

phur heating oils whenever possible.

Thanks to the continued rigorous intro-

duction of closed-circuit cleaning processes,

emissions of volatile organic compounds (VOC)

fell by a further 10% to reach 56 t (62 t). We

also succeeded in reducing dust emissions at

production facilities to 53 t (55 t).

Water consumption reduced

Sika proved able to reduce total water

consumption by about 3 % from 850 000 m3 to

828000 m3. This criterion was measured forthe first time in 1998. 45% (52 %) of the water

was used as coolant water, 28 % (27 %) was

used in the sanitary field and a further 6%

(4 %) as process water on the production side

(for example for cleaning). The remaining share

of the water, deployed in products, increased

to 21 % (17%).

Our goal remains to further reduce coolant

water consumption.

Discharges to water

The quantity of organic carbons trans-ported via water to water treatment works

remained the same as in the previous year at

113 t. Likewise, the volume of heavy metals

discharged by all Sika companies remained

below the detection level of 5 kg per year. The

volume of dissolved inorganic salts in waste

water, which was measured for the first time in

1998, fell from 430 t to 310 t.

Sicherheit

0

1000

2000

3000

Working dayslost (per millionworking days)

95 96 97 98 9995 96 97 98

Safety

0

Industrial accidents(per 1000employees)

60

40

20

99

0

100

200

300

in tons

0

300

Emissions

to air

SO2

NOx

Dust

VOC

95 96 97 98 99

Abbreviations:

CO2 carbon dioxide

NOx nitrogen oxides

SO2 sulphur dioxide

t tons

MJ/TJ megajoule/terajoule

VOC volatile organiccompounds

previous year in parenthesis

CO2emissions

in 1000 tons

0

4

8

12

16

20

95 96 97 98 99


26/118


27/11817 S I K A G R O U P

SAP R/3 software. The same applies to the im-

plementation of quality and ISO standards.

Sikas approach to staff development aims to

promote employees within the Group, while at

the same time encouraging long-term careers.

However, we also bring fresh specialist talent

into our teams from outside. Such specialists

contribute valuable knowledge and bring new

perspectives.

Applying uniform standards:

personnel management

An important measure introduced last year

was the establishment of uniform personnel

management standards which are to be

applicable throughout the whole Group. At the

start of the current year we introduced the

function of personnel management at Group

level. In addition to ensuring adherence to the

uniform standards, the primary task lies in thedevelopment of a programme for management

training.

Characterised by partnership:

Wage and salary policy

The salaries of the middle and upper levels

of management contain a significant variable

element (excl. stock option schemes). In the

case of other employees, variable pay is depen-

dent upon the respective function as well as

on cultural and country-specific customs.

Over 7000 employees at Sika

At the end of 1999, the Sika Group em-

ployed 7 044 individuals (6 964). The size of

the workforce in Europe and America rose

slightly in line with the growth of our business.

In Asia, however, we were obliged to shed staff

in view of the prevailing economic conditions

in the region. In the past year net sales per

employee rose by 6.2 % to reach CHF 240 000.

This demonstrates the high level of dedication

shown by our employees. It is also a sign that

the measures which have been introduced to

boost productivity are having the desired ef-

fect.

Employee satisfaction and development

For an internationally-active Group such

as Sika, it is tremendously important to be able

to respond rapidly to changing market condi-

tions. The motivation of staff at every level iscritical to such processes of change. For this

reason, more than half of our subsidiary com-

panies conduct surveys to assess employee

satisfaction. These surveys include about 75%

of our total workforce. The results are system-

atically evaluated. We closely monitor the

effects of the resulting improvements.

It is only with market-oriented and well-

trained employees that we will be able to

achieve our ambitious goals. For this reason,

we place tremendous emphasis on the careful

selection, further training and developmentpotential of our staff.

The rapid pace of change in the field of in-

formation technology makes intensive in-

house training essential at all staff levels, for

example with respect to the introduction of

Employees

Number of employees at end of year:

1999 1998

Female Male Total Female Male Total

Production 329 2 514 2 843 299 2 470 2 769Marketing, R+D 757 2 608 3 365 755 2 591 3 346

Administration, central services 397 439 836 408 441 849

Total workforce 1 483 5 561 7 044 1 462 5 502 6 964

Employees 1999by Region

Male

America 26%

Europe/Africa 60%

Asia/Pacific14%

Female


28/118


29/11819 S I K A G R O U P

Core construction

The launch of the new product technology

Sika ViscoCrete means that it is now possible

to manufacture a concrete which no longer

needs to be compacted with vibrations. Self

Compacting Concrete (SCC) provides additional

customer benefits in the form of:

improved construction site efficiency,

longer useful life for the structure,

lower costs for the contractor,

reduced noise pollution, as well as

easier working conditions.

As SCC uses more additives per cubic

metre of concrete, this development represents

an increase in market potential. Equally impor-

tant is the use of Sika ViscoCrete technology

in conventional concrete. Here a cost-optimis-

ing effect is reached in the production of con-

crete additives. This solution is set to supplant

conventional technologies. The developmentmarks the birth of a new generation of high-

performance liquefying Sikaments.

Impressive sales growth,

sharp improvements in profitability

The Construction Chemicals Division ended

a successful year with growth of 5.0% in Swiss

franc terms as well as an increase in EBIT of

19.7% and segment profits of 7.2 %. The

principal engine of growth, once again, was

Europe.

The markets in Asia and Latin America

appear to have bottomed out. The fourth quar-

ter in particular saw above-average rates of

growth. Strong growth in turnover was report-

ed with respect to the industrial flooringand

static reinforcementsfields of application, as

well as from trading in building materials. On

the concrete production side, profitability im-

proved sharply.

Successful acquisitions

The Swiss company Holderchem Euco AG,which was acquired from Holderbank, as well

as the acquisition of Sternson in Canada were

integrated rapidly into the local companies.

The Sternson acquisition enabled us to sharply

improve our position in Canada with respect to

cement-based coatings.

The acquisition in France enabled Sika to

strengthen its market position in the specific

segment of pressured pipe coatings (corrosion

protection).

StrategyIn the field of core construction and main-

tenance we continue systematically to work

towards our growth strategy. We focus on rigid

and elastic bonding and sealing applications in

the fields of new construction and renovation.

By this means we make use of the synergies

that are available with our industrial materials.

The expansion of our activities in the retail

business is also a part of our core strategy this

year. Our local presence and the sales organisa-

tion, which is especially geared to the supportof technologies, has customer satisfaction as

its overriding goal.

ConstructionChemicals Division

Net sales (consolidated)Construction Chemicals 1999

Asia/Pacific 11%

America 19%

Europe/Africa 70%

New construction Railway 2000,

section ZurichThalwil, Switzer-

land.

To reinforce the tunnel, 10 pipes

with close-mesh reinforcement

were filled cavity-free with SikaViscoCrete(SCC). The chosen

approach cut more than one third

off the planned working time.

Access bridge to the car ferry in

Horgen, Switzerland. For static

reasons, it was not possible to add

concrete to the bridge. Sika solu-

tion: high-strength, ultra-light

reinforcement system Sika

CarboDur CFK strips (carbon-

fibre reinforced plastic) to boost

the load-bearing capacity.


30/11820S I K A G R O U P

Elastic sealing and bonding for the con-

struction sector is an application field with a

great future. It is here that the full impact of

the synergy potential with the Industry Divi-

sion is felt. The market launch of SikaBond,

the elastic high-performance adhesive for the

construction sector, was a success. This appli-

cation, which focuses on timber construction,

leads to more efficient sound insulation and

improved tension compensation in bonded

timber.

Refurbishment

Sika is strengthening its position in this

attractive market through the rigorous imple-

mentation of our system solutions:

concrete substitution with Sika MonoTop,

concrete protection with Sikagard,

static reinforcement with Sika CarboDur, as

well aselastic sealing with Sikalastic.

For larger-scale concrete profiles, Sika

ViscoCrete technology is to be deployed as

casting concrete.

The innovations with respect to the corro-

sion inhibitor Sika FerroGard and the static

reinforcements led to extremely profitable

growth. A contribution in this respect also

came from the strategic alliance with Hexcel,

which is now showing the first results with the

market launch of SikaWrap reinforcement

fabrics. These fabrics are also deployed effec-tively in areas damaged by earthquakes.

With the novel elastic liquid sheeting

Sikalastic Sika is establishing a foothold in the

bridge sealant market.

Our activities in the steel corrosion protec-

tion sector with Sika Icosit protection systems

have produced highly satisfactory results.

In the watertight concrete construction

field, carefully targeted system additions and

marketing activities successfully reinforced our

market position. AlpTransit has approved HCB

(HolderbankCement und Beton) and Sika as

the supply consortium for all sections of the

Gotthard base tunnel.

With the market launch of SikaGrout-

300, a precision grouting compound, we have

filled an important gap in the cast, fixfield.

As a result, Sika now has a comprehensive

product range for rigid to highly-elastic appli-

cations. This means planners have access to an

integral system from one single supplier.

Finishing / maintenance

We were able to generate strong results in

the industrial flooringsector as a conse-

quence of our careful focus on specific manu-

facturing industries (e.g. the food or chip in-dustries) as well as selected key customers

(e.g. in the field of automobile manufacturing).

This is another field in which Sika ViscoCrete

technology is set to play an important role,

enabling concrete floors to be installed with

greater efficiency.

Sika PETUpcycling technology produces a

high-quality material for use in the manufac-

turing of low-cost and environmentally-

friendly floorings, such as Sikafloor-325/355,

from used materials (PET bottles) as well as

from renewable raw materials. With this tech-nology as well as with our new antistatic in-

dustrial flooring Sikafloor-262/381 AS we

have secured a further highly-promising mar-

ket segment in the field of artificial resin.

The applications in the field of water pro-

tection also continue to represent a growth

market for Sika.

in CHF m

95 96 97 98 99

Net sales (consolidated)

Construction Chemicals

0

200

400

600

800

1000

1200

1400


31/11821 S I K A G R O U P

Strong construction industry data point to

continued growth

In view of the strong global market envi-

ronment and the healthy state of the con-

struction industry, above all in Europe, the

Construction Chemicals Division is aiming to

achieve internal growth in turnover of about

5 % as well as above average earnings growth.

Retail business (do-it-yourself)

We have extended our building material

activities for the specialist retail market to in-

clude the do-it-yourselfsector. This has en-

abled us to significantly expand the market for

our products, while at the same time realising

synergies on the production and buying sides.

The importance of these building material ac-

tivities is underlined by the establishment of

specific sales organisations as well as through

the central merchandising.

Construction Contracting

Sika Bau Switzerland (sealing, concrete

maintenance) as well as Sika Bauschutz

Germany (steel corrosion protection, concrete

maintenance) performed satisfactorily, and

have extended their market positions. In

overall terms, Construction Contracting con-

tributed CHF 88 m to Group sales. The EBITmargin has to be improved.

Equipment

Sika Robotics was spun off and sold. Sika

will in future concentrate on the sale of chem-

ical-technical products for sewer and drain re-

pair.

The Aliva division (shotcreting machines)

performed well.

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33/11823 S I K A G R O U P

Local presence as key to success

An important factor for Sikas success lies

in its global local presence. Highly-trained spe-

cialists in 58 countries around the world are

available to provide customer support and to

develop joint solutions at every stage of the

application process. For our core competency

of elastic bonding, these close customer ties

are essential: customers are replacing long-

established processes such as welding or

riveting with entirely new methods. This phase,

focusing on winning trust in a new technology,

is Sikas opportunity and the basis of good

partnership between us and our customers.

Strong growth in the Industry Division

Already in the first half year, the Industry

Division reported excellent results. Through in-

ternal growth, net sales for the full year rose

by 15.4% in Swiss francs (by 14.8% in local

currencies). With the exception of Latin

America, all regions contributed to this strong

growth. In the meantime, the situation in Latin

America has stabilised. For the Industry Divi-

sion as a whole, profits increased by 18.4 %

from CHF 40 m to reach CHF 48 m.

Setting the course for the future

During the past year we created the foun-

dations to secure success for the coming years

as well. Additional capacity was created at

three specialist plants (USA, Switzerland, Italy)

for the production of high-viscous adhesives.

These adhesives form the basis of elastic

bonding,a technology in which Sika has aglobal lead.

In September 1999 Sika began production

at Grandview, near Kansas, USA, a new plant

for Sika lastomeres. The products from this

factory are deployed primarily in the auto-

mobile construction sector. Additional applica-

tions include commercial vehicles, household

appliances and prefabricated housing.

Industry Division

Net sales (consolidated)Industrial Materials 1999

Asia/Pacific 9%

Europe/Africa 49%

America 42%

Bonding and sealing carbon-fibre

sections on the Donkervoort D 8

sports car using Sikaflex-221 and

260. The high weather resistance

and anti-vibration properties of

the Sikaflex products make them

popular in the field of chassis and

vehicle construction.

The SikaBaffle family of speciality

acoustical products seals against

water, dust, air and noise and can

offer an expansion of up to

1200% to fill hollow body cavi-

ties.


34/11824S I K A G R O U P

After market

The introduction in 1999 of the Automo-

tive Linefor the after market has underlined

Sikas reputation as a strong and competent

partner. This product line offers customers the

precise glazing adhesive they need for their

specific applications. New on the market is the

adhesive SikaTack-Ultrafast II, which ensures

very short drive-away times following wind-

screen replacements. With SikaTack-Drive we

launched a product which meets the high

standards of todays automobile windscreen

mounting sector: many windscreens now have

integrated antennae for radio, telephone or

GPS equipment. For this reason, mounted

windscreens need to be electrically insulated

from the automobile chassis.

The polyurethane hybrid Sikaflex-529 for

chassis repairs was given market approval. This

product, in conjunction with the new com-pressed air applicator pistol, has been extreme-

ly well received right from the outset.

Original equipment manufacturing (OEM)

In 1999 automobile manufacturers around

the world raised their production volumes. This

had a positive knock-on effect on our business

as suppliers. The year ended with sales 34 %

stronger. The new factory established for Sika

lastomeres and Sika Baffles will enable us to

meet the high customer expectations, and has

provided us with extra capacity for future

growth.

Shared expertise in the field of acoustics:

Sika has had a cutting-edge acoustic labo-

ratory at its disposal since the summer of

1999. This is located in Detroit, Michigan, USA.

Working in close co-operation with automobile

manufacturers, we deploy this facility to devel-

op, analyse and improve the acoustic efficacy

of individual components such as Sika Baffle,

Sika Damp or Sika Barriers. The laboratoryhas built-in versatility. This means Sika Auto-

motive is also able to conduct acoustic analy-

ses for customers in other sectors. The acoustic

profiles of household appliances are already

being optimised there.

Joint venture in Japan:

Sika achieved an important breakthrough

in the form of a joint venture in Japan. As the

automobile market is entirely global, it is also

essential to have a strong profile among

Japanese manufacturers. Through the jointventure Hayashi-Sika Automotive Ltd.we

now have direct access to all Japanese auto-

mobile manufacturers. This will enable us to

raise our profile, both in Japan and abroad. Our

joint venture partner, Hayashi Telempu, is one

of the most distinguished Japanese system in-

tegrators for automobile interiors. The products

from the Sika line make an ideal fit with its

own range.

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Net sales (consolidated)

Industrial Materials


35/11825 S I K A G R O U P

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Excellent prospects

The expansion of production capacities for

high-viscous polyurethane, the new Acoustic

Test Facility, the joint venture in Japan as well

as the product innovations all mean that Sika

Industry is superbly equipped for the coming

years. Nothing now stands in the way of strong

internal growth in conjunction with high prof-

itability and carefully targeted external growth.

Transportation industry

Sika Industry has further extended its mar-

ket leadership in this segment. This position

was additionally secured through application

systems. Sikaflex-254 Booster has now be-

come the benchmark for competing products

in the commercial vehicle assembly sector. The

booster system enables assembly cycles to be

supported in a manner which was previously

only possible with a two-component adhesive.

The booster system clearly demonstrates the

benefits of our global presence. We not only

supply products, we also support and service

entire application stations.

Marine

The huge level of interest in ocean cruises

has filled many shipyard orderbooks to the

year 2005 and beyond. Sika, in its capacity as a

system partner for the shipbuilding sector, isalso benefiting from this situation. Deck grout-

ing with Sikaflex-290 DC and direct glazing

on ships have become established state-of-

the-art solutions for todays shipbuilders. Sikas

new fireproof cable duct system is a further

high-quality product which meets a long-

standing shipbuilding requirement. This system

prevents fires on ships from spreading along

cables. Our system has been certified by a large

number of marine certification agencies, in-

cluding Lloyds Register, GL, DNV and the US

Coast Guard, and is increasingly being made arequirement.

Tooling resins

The expansion of the market for model

construction blocks SikaBlock has proven to

be a success. Lasting market success with these

products, where sales increased by 28 %, has

made it necessary to add further capacity. The

increased focus on major customers, in con-

junction with the development of new market

segments, as well as the concentration onproducts with high added value are opening up

extremely interesting prospects for the future.


36/11826S I K A G R O U P

Subsidiary Companies

Sales and earnings at Sika Francedevel-

oped in line with expectations. Guttaterna, the

trading company for sealants and adhesives in

the wood sector, was able to improve on last

years results.

Sika Germanyproduced an above-average

performance, despite the difficult environment

in the construction industry.

North America

Sales in the USA and Canada rose sharply,

primarily due to the rising level of deliveries to

the automobile industry.

At Sika USA the high capacity investments

resulted in improved local readiness to deliver

as well as greater efficiency on the production

side. This had a favourable impact on customer

satisfaction levels as well as on the earnings

position. As in previous years Sika USA received

awards for strong customer-to-supplier rela-tionships.

Sika Canadais currently on a highly satis-

factory growth path.

Latin America

Sika Brazilachieved the budgeted results

in local currency terms. In spite of the reces-

sion, Sika Argentinaobtained higher sales. Sika

Chilesaw results fall in a weakening market.

Sika Uruguayperformed surprisingly well and

produced strong results. Sika Peruand Sika

Boliviacontinued their previous positivedevelopment. Sika Colombia, Sika Ecuadorand

Sika Venezuelaperformed well in the face of

the very difficult political and economic situa-

tion and adjusted their organisations. Sika

Costa Rica, which was founded in 1998, got

off to a strong start. Sika Mexicorevised its

corporate structure, and was able to lift sales

notwithstanding enormous competitive pres-

sure.

EuropeIn mid 1999 Sika AG, the Swiss parent

company of the Group, acquired the Swiss

construction chemicals activities of the com-

pany Holderbank (Euco Holderchem), integrat-

ing these step by step into the national market

strategy. Exports of construction chemical

products, and above all of industrial adhesives,

developed strongly. Inertol AG, which is active

mainly in the field of corrosion and building

protection, boosted earnings on the back of a

modest rise in sales.

Sika Austriasaw earnings rise sharply. The

companies in Poland, Sloveniaand Hungary

achieved very good results. The companies in

Slovakiaand the Czech Republicwere hurt by

the economic weaknesses in the region. The

newly-founded Croatian subsidiary company

developed in line with expectations.

The subsidiary companies in the Nether-landsonce again generated excellent results at

a high level. Sika Belgium achieved a signifi-

cant increase in sales and improved its earn-

ings performance. Sika UKsaw earnings slip

marginally on flat sales, although in overall

terms these remained at a high level. Sika

Irelandsaw sales rise firmly, which was also

reflected in a strong level of profitability.

Sika Denmark, Sika Finlandand Sika Nor-

wayonce again saw their year-on-year perfor-

mances improve. Sika Sweden was able to sta-

bilise its business levels with higher sales andimproved margins.

Sika Spain continued to grow strongly,

once again generating excellent results. Sika

Portugaldeveloped favourably in every respect.

Sika Greecewas able to meet the high sales

targets, and saw earnings jump. Sika Turkey

was hit by the continuing high inflation and

the repercussions of the severe earthquake,

although towards the end of the year the

growth trend was back on track.

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Switzerland

in CHF m

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95 96 97 98 99

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37/11827 S I K A G R O U P

Africa, Near and Middle East

The Maghreb subsidiary companies in

Algeria, Moroccoand Tunisiagenerated satis-

factory results. The relocation of business

premises by Sika South Africahurt the com-

panys results.

Sika Egypt, which is now a wholly-owned

subsidiary of Sika Finanz AG, once again

achieved an excellent performance and ful-

filled the high expectations. Sika Gulf, Bahrain,

saw sales and earnings improve sharply. The

newly-formed Sika Lebanon performed better

than expected.

Asia/Pacific

The Asian crisis was overcome last year,

as the profit performance from CHF 3.5 m to

CHF 8.8 m clearly demonstrates. However, the

performance differed sharply between indi-

vidual regions and countries.

While Sika Japan saw sales rise, the per-

formance on the profits side was furthermore

unsatisfactory. Sika Koreafell short of expecta-

tions. Sika Hong Kongcanvassed and supplied

major infrastructure projects, and generated

good results. Despite the fact that sales at Sika

Taiwan declined slightly following the major

earthquake, the company once again generat-

ed excellent results.

Sika China, as in previous years, saw stable

and strong growth, with profits to match. Sika

Philippinesalso supplied major infrastructure

projects, and this led to a sharp improvement

in earnings. Sika Vietnam developed well, andwas able to generate stable sales in conjunc-

tion with strong profits, in spite of the difficult

operating conditions. Sika Thailandposted un-

satisfactory results. In India, Sika Qualcretewas

the basis for positive results. Sika Malaysia

produced an excellent performance in the face

of difficult market conditions.

Sales at Sika Singaporefell significantly.

However, the earnings level was maintained. In

Indonesiathe difficult political and economic

situation hit Sikahard. Restructuring measures

have been initiated. Sika Australiaand SikaNew Zealandperformed well. Strong growth

went hand-in-hand with excellent profits.

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in CHF m

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38/11828S I K A G R O U P

Organisational Structure of Sika Finanz AGand the Group

Board of Directors, Group Managementand Extended Group Management

Board of Directors

Romuald Burkard, Dr. rer. pol., Baar

Honorary Chairman

Members

Rudolf Villiger, Dr. oec., Thalwil

(till 26/5/1999)

Chairman (1999) *

Hans Peter Ming, Dr. iur., Zumikon

Chairman (2002) *

(from 27/5/1999)

Thomas Bechtler, Dr. iur., Zumikon

Vice Chairman (2001) *

Urs F. Burkard, Obergeri (2002) *

Marcus Desax, Dr. iur., M. C. L., Stfa (2001) *

Robert Fechtig, Prof. Dr.-Ing. E.h., Zurich (2002)

Walter Grebler, Dr. oec. HSG, Risch

(till 31/12/1999)

Urs B. Rinderknecht, lic. iur., Ennetbaden (2001)

Georg Stucky, Dr. iur., Baar (2000) *

Kathrin Kuster, lic. oec. HSG

Secretary to the Board of Directors

(in paranthesis: terms of office until)

* Board commitee

Group Management

Walter Grebler, Dr. oec. HSG

(from 1/1/2000)

Hans Peter Ming a.i., Dr. iur.

(from 20/7/1999 till 31/12/1999)

AndrRichoz, Dr. sc. nat. ETH, MBA

(till 19/7/1999)

Chief Executive Officer

Emil Rebmann, lic. oec. HSG, MBA

Chief Financial Officer, Vice Executive Officer,

Finance and Controlling

Alexander Bleibler, Dipl. Bau-Ing. HTL


Peter

SEIKA-High performance superplasticiser

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