Press Release: Sika AG: DYNAMIC START TO THE YEAR WITH 11.0% SALES GROWTH IN 1st QUARTER OF 2018

Sika AG / Sika AG: DYNAMIC START TO THE YEAR WITH 11.0% SALES GROWTH IN

1st QUARTER OF 2018. Processed and transmitted by Nasdaq Corporate

Solutions. The issuer is solely responsible for the content of this

announcement.

-- Sales growth of 11.0% in local currencies to CHF 1,554.0 million (+11.9%

in CHF)

-- Growth in all regions

-- Organization geared to growth and enhanced efficiency with the new

Americas and Global Business regions

-- Opening of a new factory, establishment of another national subsidiary

and acquisition of one company

-- Sales target of CHF 7 billion in 2018

With a dynamic start to the 2018 financial year, Sika maintained its

strong growth trajectory, achieving double-digit sales growth in the

first quarter and a new sales record of CHF 1,554.0 million. This

equates to an increase of 11.0% in local currencies (previous year:

10.7%). A positive currency effect (0.9%) led to robust sales growth in

Swiss francs of 11.9%. Sika's growth was also positively impacted by the

consolidation of the seven companies acquired last year (acquisition

effect: 6.3%). When compared to 2017, the fact that the Easter holiday

period fell early this year had a negative impact on organic growth in

the first quarter of 2018.

Paul Schuler, CEO: "The good development of business in the first

quarter indicates that we will be able to grow strongly once again in

2018, and to further implement our strategic targets for 2020. We are

looking to increase sales by more than 10% for the year as a whole, and

thereby break through the CHF 7 billion sales mark for the first time."

GROWTH IN ALL REGIONS

In the EMEA region (Europe, Middle East, Africa) sales increased by

10.2% (previous year: 12.4%). The major EU countries with the core

markets of Spain and the UK also exhibited growth. The Middle East,

Eastern Europe and Africa delivered very impressive growth rates. In the

beginning of 2018, Sika acquired Index Construction Systems and Products,

a leading manufacturer of roofing and waterproofing systems

headquartered close to Verona, Italy. By acquiring Index, Sika will

extend its product range and significantly strengthen its position in

the Italian market.

The newly formed Americas region generated growth of 12.2% (previous

year: 14.0%), of which 5.5% was achieved through acquisitions. The harsh

North American winter led to the postponement of numerous large

projects. Mexico and Argentina continue to exhibit above-average

development. 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 3.9% (previous year:

7.1%). The highest growth rates were recorded by India, Australia and

New Zealand. China and Japan also contributed to growth in this region.

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 will enable Sika to continue its dynamic

growth in this country's booming construction market.

The new Global Business segment recorded a growth rate of 20.9%

(previous year: 3.3%). Among other things, this includes the globally

managed automotive business as well as the two acquisitions Axson

Technologies and Faist ChemTec - which are both established providers of

components and solutions for the automotive area and also managed

globally.

OUTLOOK: SALES TARGET OF CHF 7 BILLION IN 2018

The strong start to the year supports the target for the 2018 financial

year - 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. For the year as a whole, EBIT and net

profit should once again increase at a disproportionately high rate. The

growth strategy will be continued in 2018 with the opening of eight new

factories and the founding of more national subsidiaries. In addition,

Sika will seek to fully exploit the business potential offered by

acquisitions through enhanced distribution channels, expanded product

portfolios and improved prospects for market access.

NET SALES IN THE FIRST THREE MONTHS OF 2018

1/1/2017-

in CHF million 3/31/2017 1/1/2018-3/31/2018 Year-on-year change (+/- in %)

in local Currency Acquisition

in CHF currencies(1) effect effect

By region

EMEA 596.7 691.5 15.9 10.2 5.7 7.2

Americas 366.6 389.0 6.1 12.2 -6.1 5.5

Asia/Pacific 250.9 257.7 2.7 3.9 -1.2 0.0

Global Business 174.8 215.8 23.5 20.9 2.6 13.8

Net sales consolidated 1,389.0 1,554.0 11.9 11.0 0.9 6.3

Products for the

construction industry 1,059.4 1,170.2 10.5 9.7 0.8 5.9

Products for

industrial manufacturing 329.6 383.8 16.4 14.9 1.5 7.4

(1) including acquisitions

FINANCIAL CALENDAR

50th Annual General Meeting Tuesday, April 17, 2018, 1.00 p.m.

Half-Year Report 2018 Thursday, July 26, 2018

Results first nine months 2018 Thursday, October 25, 2018

Net sales 2018 Tuesday, January 8, 2019

Full-Year Results 2018 Friday, February 22, 2019

51st Annual General Meeting Tuesday, April 9, 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 production of systems and products for bonding, sealing,

damping, reinforcing and protecting in the building sector and motor

vehicle industry. Sika has subsidiaries in 101 countries around the

world and manufactures in over 200 factories. Its more than 18,000

employees generated annual sales of CHF 6.25 billion in 2017.

The media release can be downloaded from the following link:

Media Release: http://hugin.info/100359/R/2184661/844090.pdf

This announcement is distributed by Nasdaq Corporate Solutions on behalf

of Nasdaq Corporate Solutions clients.

The issuer of this announcement warrants that they are solely

responsible for the content, accuracy and originality of the information

contained therein.

Source: Sika AG via Globenewswire

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Sika AG

Zugerstrasse 50 Baar Switzerland

WKN: 858573;ISIN: CH0000587979;

http://www.sika.com

(END) Dow Jones Newswires

April 16, 2018 23:00 ET (03:00 GMT)