SIKA SUSTAINABLE SOLUTIONS€¦ · Annual sales growth of 6–8% (at constant exchange rates, including acquisitions) Emerging markets with 42% to 45% of Group sales by 2018 Operating

SIKA SUSTAINABLE SOLUTIONS «MORE VALUE – LESS IMPACT»

SIKA SERVICES AG CORPORATE COMMUNICATIONS/ CORPORATE EHS & SUSTAINABILITY MAY 2014

1 ORGANIZATION

2 GLOBAL MEGATRENDS

3 COMMITMENT

4 MORE VALUE, LESS IMPACT

2 Sika Sustainability

CONTENT

May 15, 2014

ORGANIZATION

May 15, 2014 3 Sika Sustainability

SIKA AT A GLANCE

Global specialty chemicals company

Supplying construction markets and the manufacturing industry

Headquarters in Baar, Switzerland

Founded in 1910 Sales of CHF 5.14 billion (2013) Over 16,000 employees In 84 countries

4 Sika Sustainability May 15, 2014

SIKA’S STRATEGY 2018

The Sika Growth Model ensures the long-term success and the profitable growth of our company.

We aim for global market leadership in our 7 target markets through cross selling, life-cycle management and the strengthening of our brand. The core of our business is our innovation management and our focus on developing quality products and the best solutions for our customers.

We accelerate the build-up of our organizations in the emerging markets and further expand our supply chain footprint. Acquisitions will enable us to leverage our market access and to strengthen our economies of scale.

5 Sika Sustainability May 15, 2014

VALUES & PRINCIPLES

Our Sika Spirit – which is defined in Sika’s Values & Principles – is the foundation of our future success. We act with respect and responsibility towards our customers, our shareholders and our employees which is reflected in our Sika brand promise «Building Trust».

1. Customers first

2. Courage for innovation

3. Sustainability & integrity

4. Empowerment & respect

5. Manage for results


TARGETS 2018

Annual sales growth of 6–8% (at constant exchange rates, including acquisitions)

Emerging markets with 42% to 45% of Group sales by 2018

Operating profit (EBIT) above 10% of net sales

Operating free cash flow above 6% of net sales

ROCE above 20%

Maintain A- rating


SIKA MILESTONES

1910 Foundation by Kaspar Winkler and invention of Sika 1

1920s Waterproofing of Gotthard railway tunnel

1930s Expansion in Europe and Latin America

1962 PVC and liquid applied membranes

1968 Going public at SIX Swiss Exchange

1968 Launch of first Sikaflex® products

1969 First vegetated green roofs

1980s Bonding solutions for automotive industry

1983 Introduction of Industry Division

1998 Launch of Sika® ViscoCrete®

2009 Introduction of Sika ComfortFloor®

2010 100th anniversary

2011 i-Cure® (new polyurethane curing technology for sealants and adhesives)

2012 Listing in the Swiss Leader Index (SLI)

2013 Launch of SikaHyflex® (Building Envelope)


EMEA, Asia/Pacific, North America, Latin America

Subsidiaries in 84 countries on five continents

Over 160 factories

More than 16,000 employees


WORLDWIDE PRESENCE

May 15, 2014

Management divided by regions and target markets

Flat hierarchy


GROUP MANAGEMENT

CEO

Jan Jenisch

EMEA

Paul Schuler

ASIA/PACIFIC

Heinz Gisel

NORTH AMERICA

Christoph Ganz

LATIN AMERICA

José Luis Vázquez

CFO

Adrian Widmer

TECHNOLOGY

Thomas Hasler

BUILDING SYSTEMS & INDUSTRY

Silvio Ponti, Deputy CEO

CONCRETE & WATERPROOFING

Ernesto Schümperli

May 15, 2014

TARGET MARKETS

11

Sealing & Bonding Refurbishment Industry

Concrete Waterproofing Roofing Flooring

May 15, 2014 Sika Sustainability

GLOBAL MEGATRENDS


GLOBAL MEGATRENDS CHALLENGES RE-SHAPE MARKETS AND SUPPLY CHAIN

May 15, 2014 13

RESOURCE AND ENERGY DEMAND CLIMATE CHANGE

WATER DEMAND INFRASTRUCTURE AND URBANISATION

Sika Sustainability

Market Trends

Energy efficiency in buildings and transportation

New material combinations to save weight and fuel

Green building protocols & frameworks for top projects / public projects

Public interest: Customers, Investors, Governments, Public Procurement

Opportunities for products/ solutions

Mission

Sustainability as business driver and enabler with growing relevance

Sustainable solutions for environment and society

Transform global challenges into value creation and efficiency

More «value», less «impacts»

May 15, 2014 14

GLOBAL MEGATRENDS RESPOND TO EMERGING MARKET CHANGES

Sika Sustainability

COMMITMENT


May 15, 2014 16

OUR COMMITMENT JAN JENISCH, CEO

«We are committed to pioneering sustainable solutions to address global challenges, and to achieve this safely at the lowest impact on resources.»

Sika Sustainability

CONTRIBUTION TOWARDS SUSTAINABLE CONSTRUCTION GROWING DEMAND FOR SIKA PRODUCTS

More efficient use of limited natural resources and energy («green cities»)

Demand for longer life cycles of infrastructure and buildings

Demand for low-energy housing

Drive towards higher recyclability of materials

Demand for safe-to-use products, lower-emission products

New technologies for vehicles and transportation

Increasing environmental regulations

17 May 15, 2014 Sika Sustainability

GRI (Global Reporting Initiative) is a globally recognized Standard for Sustainability Reporting

Covering OECD guidelines and UN Global Compact rules

Principles: Relevance, Completeness, Accuracy, Balance

The GRI aspects are:

Economic: Value Creation and Distribution

Environmental: Energy, Materials, Water

Social: Labor Practices and Decent Work, Human Rights, Society, Product Responsibility

Our motivation:

Company portrayed as a responsible citizen

Reporting and improving relevant topics, on which we have influence

One of the first companies to report on its sustainability performance in accordance with the new standard GRI G4

May 15, 2014 18

SUSTAINABILITY MANAGEMENT IMPLEMENTATION OF GRI (G4) REPORTING

Sika Sustainability

Sika Group reporting 2013 on economic environmental social performance

May 15, 2014 19

SUSTAINABILITY REPORTING FIRST REPORT ACCORDING TO GRI G4 STANDARD «CORE»

WWW.SIKA.COM/SUSTAINABILITY

Sika Sustainability

MORE VALUE, LESS IMPACT

May 15, 2014 Sika Sustainability 20

SUSTAINABILITY COMMUNICATION MORE VALUE – LESS IMPACT

Fact-based communication to maximize credibility by showing tangible commitment

Projects/ Initiatives for more value

Projects/ Initiatives for less impact

Maximized value of solutions and contributions to stakeholders

Reduced risks and resource consumption


SUSTAINABILITY STRATEGY SIX STRATEGIC TARGETS FOR 2014 TO 2018

Six target indicators with the largest potential effect: They cover the economic, environmental and social dimensions of Sika’s business.


SUSTAINABILITY COMMUNICATION OVERVIEW

Material Issues Occupational Health &

Safety Product Quality &

Reliability Customer Satisfaction Customer Health &

Safety Resource Consumption Eco friendly Products Water Consumption …

Brand Personality Pioneering Team Oriented Committed

Communication Themes Sustainable Solutions Proven Quality Global but Local

Partnership

Sika Focus Areas of Value Creation Economy Environment Society

Sustainability Communication

Global Reporting Index Sika Brand


SUSTAINABILITY STRATEGY FOCUS AREA «ECONOMIC PERFORMANCE»


May 15, 2014 25

FOCUS AREA «ECONOMIC PERFORMANCE» GOAL AND TARGET

Shared success and strong partnership with stakeholders

ILEANA NICOLAE AREA MANAGER EUROPE EAST «Sika is pursuing a successful growth strategy. In this context we are active in markets with structural growth and are providing solutions for mature and emerging markets. We are continuously developing new products and achieving technology leadership in order to ensure growth and profitability based on a strong market position.»

Sika Sustainability

FOCUS AREA «ECONOMIC PERFORMANCE» HIGHLIGHTS STRATEGY 2018

Market Leadership

Technology Leadership

Market access through acquisitions

Buildup of Emerging Markets


Strong company values

SUSTAINABILITY STRATEGY FOCUS AREA «SUSTAINABLE SOLUTIONS»


May 15, 2014 28

FOCUS AREA «SUSTAINABLE SOLUTIONS» GOAL AND TARGET

Leading by example

KOICHI OBA HEAD OF CORPORATE TARGET MARKET ROOFING «Roofing systems from Sika enable technical solutions with a longer service life. Providing sustainable solutions on top of engineering services will help customers generate added value and always stay one step ahead of the competition.»

Sika Sustainability

FOCUS AREA «SUSTAINABLE SOLUTIONS» PROJECT HIGHLIGHTS 2013

Reduction of Argos’ Carbon Footprint, Colombia

Production plants in Colombia

Recycling Partnership with Target, USA

Department Store Olathe, Kansas

LEED Platinum Project, Greece Sika solutions from roof to basement


Energy and CO2 savings, Spain

Supermarket in Girona

SUSTAINABILITY STRATEGY FOCUS AREA «LOCAL COMMUNITIES AND SOCIETY»


May 15, 2014 31

FOCUS AREA «LOCAL COMMUNITIES AND SOCIETY» GOAL AND TARGET

Everywhere is home

YUMI KAN AREA MANAGER SOUTH EAST ASIA I «We support local communities to improve people’s lives and the environment, and to reinforce our commitment to our staff who are members of the community in which we work. Since 2010 we are a strategic partner of Operation Smile Vietnam (OSV).»

Sika Sustainability

FOCUS AREA «LOCAL COMMUNITIES AND SOCIETY» PROJECT HIGHLIGHTS 2013

Romuald Burkard Foundation, worldwide Over 30 projects in 17 countries supported

Operation Smile Vietnam, Vietnam

Surgery to 900 children with cleft lip and palate

University ETH Zurich, Switzerland

Allocation of CHF 7 million to support professorship


Global Nature Fund, worldwide

100 organizations, model projects in Africa and Asia

SUSTAINABILITY STRATEGY FOCUS AREA «ENERGY»


May 15, 2014 34

FOCUS AREA «ENERGY» GOAL AND TARGET

Unlimited commitment in order to manage limited resources

JORGE HERNANDEZ OPERATION MANAGER, SIKA SPAIN S.A. «Using less energy to achieve the same result and using the same amount of energy to produce better results - this formula has become increasingly important from both an economic and an environmental point of view.»

Sika Sustainability

FOCUS AREA «ENERGY» PROJECT HIGHLIGHTS 2013

Rice husks as coal replacement in steam boilers, Jiangsu Sika TMS Admixture Co. Ltd., China

Construction of a solar park, Sika France SA Plant Marguerittes, France

DGNB®- certified Sika Training center, Sika Germany Plant Stuttgart, Germany


Factory and warehouse relamping, Sika Corporation

Plant Lyndhurst, USA

SUSTAINABILITY STRATEGY FOCUS AREA «WATER AND WASTE»


May 15, 2014 37

FOCUS AREA «WATER AND WASTE» GOAL AND TARGET

Manifold demands, one objective: reduced impact

ANYELO MARTINEZ EHSQ MANAGER, SIKA COLOMBIA S.A. «Water is the oil of XXI century. We are using rainwater in our factory in Bogota and are constantly searching for low impact and low cost alternatives to assure our growth, not only economically, but also socially and environmentally. This is sustainability.»

Sika Sustainability

FOCUS AREA «WATER AND WASTE» PROJECT HIGHLIGHTS 2013

Industrial water supply based on rainwater, Sika Colombia, Plant Tocancipa, Colombia

Packaging waste reduction, Sika Turkey

Plant Tuzla, Turkey

Recycling of PVC production scrap, Sika China Plant Shanghai, China


Upgrade of wastewater treatment facility, Sika S.A. Plant Alcobendas, Spain

SUSTAINABILITY STRATEGY FOCUS AREA «OCCUPATIONAL SAFETY»


May 15, 2014 40

FOCUS AREA «OCCUPATIONAL SAFETY» GOAL AND TARGET

A world in which work is safe and healthy

STEFAN ODERBOLZ HEAD OF OPERATION ASIA/PACIFIC «Our safety culture and healthy workplace environment are at the heart of everything we do. That means we promote and make every effort to achieve the highest possible degree of physical, mental and social well-being of our employees. When it comes to occupational injuries and illnesses, we have ambitious goals: zero occupational injuries or illnesses.»

Sika Sustainability

FOCUS AREA «OCCUPATIONAL SAFETY» PROJECT HIGHLIGHTS 2013

Safety awareness week, Sika Asia/Pacific 38 plants in 13 countries, Asia/Pacific

5S tools in safety management, Sika Ltd.

Plant Welwyn Garden City, UK

Zero accident aspiration via «nouvel élan», Sika SA Plant Gournay, France


Safe working practice, Sika Australia 4 plants, Australia

SUSTAINABILITY STRATEGY PARTNERSHIPS AND MEMBERSHIPS


May 15, 2014 43

PARTNERSHIPS AND MEMBERSHIPS INITIATIVES SUPPORTED BY SIKA

WORLD BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT (WBCSD)

RESPONSIBLE CARE (RC) UNITED NATIONS GLOBAL COMPACT (UNGC) UNITED NATIONS ENVIRONMENT PROGRAM (UNEP) CARBON DISCLOSURE PROJECT (CDP) U.S. GREEN BUILDING COUNCIL (USGBC) NETWORK SUSTAINABLE CONSTRUCTION

SWITZERLAND (NNBS) TRANSPARENCY INTERNATIONAL

Sika Sustainability

May 15, 2014 44

SUSTAINABILITY AT A GLANCE MORE VALUE – LESS IMPACT

Find more about Sika’s campaign Commitment Strategy 5-year targets Projects and initatives Performance

WWW.SIKA.COM/SUSTAINABILITY

Sika Sustainability

http://www.sika.com/SUSTAINABILITY

SIKA SUSTAINABLE SOLUTIONS «MORE VALUE – LESS IMPACT»

SIKA SUSTAINABLE SOLUTIONS€¦ · Annual sales growth of 6–8% (at constant exchange rates, including acquisitions) Emerging markets with 42% to 45% of Group sales by 2018 Operating

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