Press Release: SIKA RAISES EBIT TARGET AND GEARS ITS ORGANIZATION TOWARDS CONTINUED SUSTAINABLE GROWTH WITH STRATEGY 2023

SIKA RAISES EBIT TARGET AND GEARS ITS ORGANIZATION TOWARDS CONTINUED

SUSTAINABLE GROWTH WITH STRATEGY 2023

At the 2019 Sika Capital Markets Day being held in Zurich today, CEO

Paul Schuler presents the new Strategy 2023, which builds on the current

successful growth model. This will set the course for an even stronger

performance. In addition to a rise in the long-term EBIT target to

15-18%, the main new elements of Strategy 2023 are the introduction of a

new Target Market, "Building Finishing", a focus on operational

efficiency, and a targeted, Group-wide emphasis on environmentally

friendly products and sustainability.

Paul Schuler, CEO: "We are convinced that Strategy 2023 will enable us

to raise Sika to the next level and to continue on the growth trajectory

we have successfully pursued for many years. With our newly established

eighth Target Market "Building Finishing" we will be bundling our range

of services and skills in the mortar technology field, thus focusing on

the potential in this market. Increased focus on raising operational

efficiency will help us improve our operating costs by 0.5 percentage

points per year. On top of that, we want to make our product innovations

even more sustainable while at the same time boosting product

performance."

The Sika growth model is synonymous with long-term success and

profitable growth. By targeting the six pillars of market penetration,

innovation, operational efficiency, acquisitions, strong corporate

values, and sustainability, Sika plans to grow by 6-8% a year up to

2023. At the same time, it is aiming for a higher EBIT margin of 15-18%,

instead of today's 14-16%.

The company's innovative power will increasingly be channeled into

sustainable product development. New products will create clear added

value for customers as well as being even more sustainable. 25% of sales

will be generated by products that are less than five years old.

An important driver for margin improvement will be increased operational

efficiency. Projects in the areas of operations, logistics, procurement

and product formulation will result in an annual improvement in

operating costs equivalent to 0.5% of sales.

Sustainability is a key value and a central element of Sika's corporate

management. Already today, Sika offers its customers a range of

environmentally friendly product technologies, for instance for

energy-efficient construction and environmentally friendly vehicles. In

future, Sika products will not only deliver better performance but will

feature enhanced environmental benefits as well. Furthermore, Sika has

set itself ambitious goals to reduce its annual energy and water

consumption, as well as its waste output. With its newly defined

sustainability targets, Sika will minimize resource consumption and the

environmental impact of its production process. Sika's overriding goal

is to reduce CO(2) emissions per ton manufactured by 12% until 2023.

The successful implementation of Strategy 2023, with its sustainable and

profitable growth and innovative solutions for products in all Target

Markets, will secure Sika's future. It will generate added value for all

stakeholders, customers, and employees.

For more information on the Strategy 2023 and the Capital Markets Day

2019 please visit

https://www.globenewswire.com/Tracker?data=k6Z0tlJjJvZZPRiZhT3poGdahmZO5r3sPZb47rIqKajpdn_dtzx-TiB51h6RTZfMmuHYIpDQliwNnhQruAVIfzY39O7wby0A7shuAnqKVNR6Qmy9eM2uzZw9iD7Kn5Uc

www.sika.com/capital-markets-day

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 300 factories. Sika employs some 24,000

people and is forecasting sales of over CHF 8 billion for fiscal 2019.

CONTACT

Dominik Slappnig

Corporate Communications &

Investor Relations

+41 58 436 68 21

https://www.globenewswire.com/Tracker?data=A5b5EdVGUA9-2nKa-AItOTwRNSANT9xmpMsrPEE2xMHR9-gG6DfyWwhHXZe0wXznHHEbYD27Pi5bxNR-n3etQVQCyXHPRivoU79qGq_GW_5nXNzyBwY_PfqsTLtiijU2

slappnig.dominik@ch.sika.com

The media release can be downloaded from the following link:

-- Media Release

https://ml-eu.globenewswire.com/Resource/Download/63d7acc6-6e0c-45f2-b6ee-5afbd7059706

(END) Dow Jones Newswires

October 03, 2019 01:01 ET (05:01 GMT)