Sika (SIKA) CMD 2024 summary

Strategic Focus and Market Trends

• Emphasis on infrastructure refurbishment and sustainability, with 35% of turnover from infrastructure work and a growing share from refurbishment projects in mature and emerging markets.

• Increasing demand for durable, circular solutions to extend service life of structures, driven by aging infrastructure, regulatory changes, and global trends of climate change and resource scarcity.

• Refurbishment projects offer higher wallet share and profitability, with double-digit percentages of project value compared to 2–3% for new builds.

• Cross-selling opportunities are greater in refurbishment, leveraging a broad portfolio of products and solutions.

• Distribution remains a key growth driver, with significant potential for further penetration, especially in North America and Europe.

Innovation and Product Development

• Launch of new sustainable products, including low-CO2 mortars, bio-based materials, and recyclable packaging, to address decarbonization and regulatory needs.

• Introduction of advanced digital tools, such as the Sika Sand App and Mix Design App, to optimize material use and support customers with data-driven solutions.

• Development of self-healing roofing membranes and real-time monitoring systems to enhance durability and maintenance efficiency.

• Expansion of fiber-reinforced concrete solutions and technologies for recycled aggregates and returned concrete, supporting circularity and labor efficiency.

• Ongoing investment in capital-light, tech-enabled services to create competitive differentiation and recurring revenue streams.

Financial Guidance and Market Outlook

• Strategy 2028 targets 6-9% annual sales growth in local currencies, 20-23% EBITDA margin, and over 10% operating free cash flow as a percentage of net sales, with 20-25% ROCE once MBCC synergies are realized.

• 2024 outlook confirms 6-9% sales growth in local currencies and an over-proportional increase in EBITDA.

• MBCC integration is on track, with synergy targets raised to CHF 100-120M in 2024 and CHF 180-200M by 2026, supporting margin improvement.

• Achieved CHF 11.2 billion in sales in 2023, reflecting a strong global presence and market leadership.

• Operations span 103 countries with over 400 factories, supporting robust international growth and innovation.