Sika AG ("Sika") announces the launch of an offering (the "Offering") of up to CHF 1,300 million subordinated mandatory convertible notes due 2022 (the "Notes"). Sika intends to use the net proceeds from the Offering to fund the recently
announced acquisition of Parex and for general corporate purposes.

The Notes will be mandatorily converted into new or existing registered shares of Sika at maturity, subject to the early conversion rights of Sika and noteholders in accordance with the terms and conditions of the Notes.

The Notes will be issued at 100% of their principal amount in denominations of
CHF 200,000. The Notes are expected to carry interest of between 3.75% and
4.00% per annum payable annually in arrears. The Notes are expected to have a
minimum conversion price equal to the reference share price and a maximum
conversion price set at a premium of between 12.5% and 15.0% over the reference
share price.

The reference share price is expected to be equal to the share price determined in a concurrent placement of existing shares from hedging transactions of individual mandatory convertible notes investors. The Notes will be subordinated obligations of Sika, as described in the terms and conditions of the Notes.

Sika may, at its sole discretion, elect to defer (in whole or in part) any payment of interest on the Notes. Arrears of interest may be satisfied at the option of Sika, in whole or in part, at any time, or mandatorily upon the occurrence of certain events, as described in the terms and conditions of the Notes.

Sika will announce the final terms of the Offering, including the coupon,
maximum conversion price, reference share price and issue size after completion
of an accelerated bookbuilding process, which is expected to be finalized
before opening of business on January 23, 2019.

The Offering consists of a public offering in Switzerland and private
placements of Notes to professional investors only in other jurisdictions. The
Notes will be offered to investors outside the United States in compliance with
Regulation S under the US Securities Act of 1933, and otherwise in accordance
with applicable securities laws, rules and regulations.

The Settlement of the Offering is expected to take place on January 30, 2019.
An application will be made for the listing and trading of the Notes on SIX
Swiss Exchange Ltd. Sika intends to apply for the Notes to be rated by S&P.

Sika has agreed to a lock-up period expiring 90 days after the date on which
the pricing terms of the Notes are finalized.

UBS is acting as Global Coordinator and Joint Bookrunner. Citigroup is acting
as Joint Bookrunner alongside UBS.