Press Release: SIKA ACHIEVES RECORD RESULTS IN SALES AND PROFIT

Sika AG / SIKA ACHIEVES RECORD RESULTS IN SALES AND PROFIT. Processed

and transmitted by West Corporation. The issuer is solely responsible

for the content of this announcement.

-- Sales growth of 14.1% in local currency (15.0% in CHF) to CHF 5,322.7

million

-- Growth in all regions

-- Operating profit (EBIT) up 9.0% (excluding one-off costs incurred in

connection with the resolution of the dispute with Saint-Gobain, EBIT

would have risen by 12.4%)

-- Double-digit increase in net profit of 10.5%

-- Consistent implementation of growth strategy with establishment of a

further national subsidiary, the opening of six new factories, and

completion of three acquisitions

-- Outlook 2018: Confirmation of sales target of more than CHF 7 billion -

double-digit growth in both EBIT and net profit

With sales growth of 14.1% in local currency (15.0% in CHF), Sika

continued on its successful growth trajectory in the first nine months

of the year, achieving a new record sales figure of CHF 5,322.7

million. As part of the implementation of the strategic targets for

2020, one further national subsidiary was founded, six new factories

were opened and three acquisitions were completed - the aim being to

proceed with the expansion in high-growth business areas and markets.

NET PROFIT AT RECORD LEVEL

A combination of price adjustments and further volume growth with

disproportionately low cost rises partly made up for higher raw material

prices and exceptional expenses incurred in connection with the

integration of acquired companies. In addition, one-off effects

amounting to CHF 23 million relating to the agreement reached in the

takeover dispute with Saint-Gobain had a negative impact on EBIT.

Operating profit (EBIT) nonetheless improved by 9.0% (+ CHF 59.9

million) to CHF 728.9 million (previous year: CHF 669.0 million). Net

profit rose by 10.5% (+ CHF 50.3 million) to CHF 527.7 million (previous

year: CHF 477.4 million).

Paul Schuler, Chief Executive Officer: "A further sales increase of

14.1% - which is significantly above our defined target corridor - and a

profit increase of 10.5% demonstrate that we are tapping into the

business potential of global markets and generating further enterprise

value. A very pleasing development in the first nine months of the year

is the 29.9% growth in the new Global Business segment and the 14.4%

rise in the EMEA region. Our sales teams are focusing in particular on

major cities and metropolitan areas in order to benefit in a lasting way

from the construction of high-rise buildings, the realization of

infrastructure projects and the maintenance of existing structures,

while at the same time steering the organization toward further

profitable growth."

GROWTH IN ALL REGIONS

In the first nine months of the year, sales in the EMEA region (Europe,

Middle East, Africa) increased by 14.4% (previous year: 6.8%). The core

markets of Spain and the UK recorded high single-digit growth.

Double-digit growth rates were recorded in the Middle East, Africa, and

Eastern Europe.

With its acquisition of Index Construction Systems and Products, Sika

has gained a leading manufacturer of waterproofing systems for roofs and

building structures headquartered near Verona, Italy. In the reporting

period Sika also acquired Polypag, a leading Swiss-based manufacturer

and developer of polyurethane foam systems. Production capacity was

increased in Senegal, Saudi Arabia, Dubai and Azerbaijan through the

commissioning of new factories for concrete admixtures and mortar

products.

The newly established Americas region recorded growth of 13.0% in the

first nine months of 2018 (previous year: 11.1%). The USA managed to

record double-digit growth thanks to strong demand in key target

markets. The development of business in Mexico, Argentina, and Brazil

was above-average. The basis for further growth in Central America was

laid with the establishment of a new national subsidiary in Honduras.

Growth in the Asia/Pacific region amounted to 4.8% (previous year:

4.9%). Here the highest growth rates were recorded by India and China.

In Vietnam, a state-of-the-art facility for mortar production has come

on stream in the Bac Ninh plant alongside the existing production of

concrete admixtures. This has enabled Sika to expand its supply chain in

this country's booming construction market.

The new Global Business segment recorded a growth rate of 29.9%

(previous year: 9.2%), of which 22.7% is attributable to the acquisition

of Faist ChemTec. This new segment includes the globally managed

automotive business as well as the two businesses Advanced Resins

(formerly Axson Technologies) and Faist. Both are centrally managed and

are established providers of components and solutions for automotive and

other industries. Thanks to structural growth and greater market

penetration, Sika recorded an increase of 6% in the third quarter in the

automotive area, which is significantly higher than the overall market

performance. A new automotive factory for the production of acoustic and

body reinforcement systems was opened in Querétaro, in order to

derive even greater benefit from the strong Mexican automotive market.

OUTLOOK 2018: CONFIRMATION OF SALES TARGET OF MORE THAN CHF 7 BILLION -

DOUBLE-DIGIT GROWTH IN BOTH EBIT AND NET PROFIT

Based on the result for the first nine months of the current financial

year, Sika is confirming its target for full year 2018 - namely an

increase in sales of more than 10% to reach CHF 7 billion for the first

time. Volatile and rising raw material prices continue to pose a

challenge. Despite the one-off costs incurred in connection with

resolving the takeover dispute and the higher raw material prices, Sika

is expecting double-digit growth rates for both EBIT and net profit for

the year as a whole. The growth strategy will be continued in 2018 with

the opening of at least eight new factories and further acquisitions in

the highly fragmented construction chemicals market.

KEY FIGURES NINE MONTHS 2018

In CHF mn 1/1/2017 - 9/30/2017 1/1/2018 - 9/30/2018 Change in %

Net sales 4,627.5 5,322.7 15.0

Gross result 2,532.5 2,838.3 12.1

Operating profit

before depreciation

(EBITDA) 797.9 880.0 10.3

Operating profit

(EBIT) 669.0 728.9 9.0

Net profit 477.4 527.7 10.5

NET SALES BY REGION

1/1/2017 1/1/2018 Change compared to prior year

in CHF mn -9/30/2017 -9/30/2018 (+/- in %)

In local Currency Acquisition

In CHF currencies(1) impact effect

By region

EMEA 2,033.7 2,400.4 18.0 14.4 3.6 7.2

Americas 1,261.3 1,382.6 9.6 13.0 -3.4 5.0

Asia/Pacific 812.1 852.3 5.0 4.8 0.2 0.0

Global Business 520.4 687.4 32.1 29.9 2.2 22.7

Net sales 4,627.5 5,322.7 15.0 14.1 0.9 7.1

Products for construction

industry 3,631.8 4,108.4 13.1 12.4 0.7 5.8

Products for

industrial manufacturing 995.7 1,214.3 22.0 20.4 1.6 11.8

(1) Including acquisitions

Conference call today, October 25, 2018 at 3.00 pm (CET)

In connection with the publication of the results for the first nine

months a conference call will be held today. Please dial in 10 to 15

minutes before the start at:

+41 58 310 5000 (Europe, Asia)

+1 631 570 5613 (North America, Latin America)

+44 207 107 0613 (UK)

An operator will then connect you with Paul Schuler (CEO), Adrian Widmer

(CFO) and

Dominik Slappnig (Head Corporate Communications & IR).

A replay of the call will be available on the Sika website in the

"Investors" section.

FINANCIAL CALENDAR:

Net sales 2018 Tuesday, January 8, 2019

Media conference / analyst presentation on full-year Friday, February 22,

results 2018 2019

Net sales first quarter 2019 Tuesday, April 9, 2019

51(st) Annual General Meeting Tuesday, April 9, 2019

Half-year report 2019 Thursday, July 25, 2019

Results first nine months 2019 Thursday, October 24,

2019

CONTACT

Dominik Slappnig

Corporate Communications &

Investor Relations

+41 58 436 68 21

slappnig.dominik@ch.sika.com

SIKA CORPORATE PROFILE

Sika is a specialty chemicals company with a leading position in the

development and SHYproduction of systems and products for SHYbonding,

sealing, damping, reinforcing and protecting in the building sector and

autoSHYmotive industry. Sika has subsidiaries in 101 countries around

the world and manufactures in over 200 factories. In 2017, our more than

18,000 employees generated sales of CHF 6.25 billion.

The media release can be downloaded from the following link:

Media Release: http://hugin.info/100359/R/2222019/870037.pdf

This announcement is distributed by West Corporation on behalf of West

Corporation clients.

The issuer of this announcement warrants that they are solely

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October 24, 2018 23:00 ET (03:00 GMT)