BUILDING TRUST | Sika South Africa

Sika reinforces its leading position as an enabler of sustainable construction. In cooperation with leading key players, Sika is working on the development of concrete admixtures implementing the LC3 technology that lowers CO2 emissions, developed by the Swiss Federal Institute of Technology Lausanne. This new technology aims to facilitate the production of performant and sustainable cement with less clinker.

▪ Sales increase of 12.6% in local currencies
▪ Q1 sales of CHF 1,998.6 million (+10.2% in CHF)
▪ Negative currency effect of –2.4%
▪ Acquisition of Kreps (Russia), DriTac (USA), and BR Massa (Brazil)
▪ Outlook for 2021 fiscal year
▪ Double-digit sales growth in local currencies (previously: local currency growth
of 6%–8%)
▪ Over-proportional increase in EBIT, EBIT margin to reach 15% for the first time
▪ Confirmation of 2023 strategic targets for sustainable, profitable growth

The Lungisisa Indlela Village, better known as LIV, is a non-profit organisation founded by Tich and Joan Smith in 2010. According to UNICEF statistics, there are an estimated 3.7 million orphans in South Africa, who have either lost both their parents or similarly, live under child-headed households. LIV was established with a view to addressing this situation, and ultimately providing for these children.

Sika has developed a new, ground-breaking recycling process for old concrete. The old concrete is broken down into the individual parts gravel, sand and limestone in a simple and efficient process, which also binds about 60 kg of CO2 per ton of crushed concrete demolition waste. This innovation - with the brand name «reCO2ver» - will make a significant contribution to reduce the ecological footprint of the construction industry.

• Sales of CHF 7,877.5 million (–2.9% in CHF, +3.4% in local currencies)
• EBITDA increased to CHF 1,497.6 million (+7.9%)
• Operating profit (EBIT) increased to CHF 1,130.5 million (+7.1%)
• EBIT margin increased to 14.4% (previous year: 13.0%)
• Net profit up to CHF 825.1 million (+8.8%)
• Operating free cash flow increased to CHF 1,259.4 million (+22.7%)
• Reduction of CO2 emissions by 25.9% to 20 kg per ton sold (previous year: 27 kg per ton sold)
• 6 factories opened or extended, 1 company acquired and one expanded
partnership
• Proposal for dividend increase of 8.7% to CHF 2.50 (previous year: CHF 2.30)
• From May 1, 2021: Thomas Hasler to succeed CEO Paul Schuler
▪ Outlook for 2021 fiscal year
▪ Sales increase in local currencies of 6%–8%
▪ Over-proportional increase in EBIT, EBIT margin to reach 15% for the first time
▪ Confirmation of 2023 strategic targets for sustainable, profitable growth

The 2020 fiscal year was overshadowed by the COVID-19 pandemic, which had a number of severe effects for the construction and automotive sectors. Despite this difficult environment, Sika nonetheless achieved record results. Sales increased by 3.4% in local currencies. Due to negative currency effects, this equates to a slight decline in sales in Swiss francs of -2.9% compared to the prior year. Operating profit (EBIT) grew by an over-proportional 7.1% to CHF 1,130.5 million – a new record result. In keeping with this development, new records were also set for net profit at CHF 825.1 million (+8.8% year-on-year) and operating free cash flow at CHF 1,259.4 million (+22.7% year-on-year).

In a world where unemployment and poverty are escalating, and economic growth has stagnated, it has become necessary to reach out a helping hand and assist those in need. Even more so in this crazy time of the global pandemic.