REGION EMEA PAUL SCHULER REGIONAL MANAGER EMEA SIKA CAPITAL MARKETS DAY 2016

NET SALES EMEA GOOD GROWTH MOMENTUM, FX EFFECT WEAKENS CHF NUMBERS

2,339 2,275

2,470

2,734 2,600

1,500

2,000

2,500

3,000

11 12 13 14 15 16FC

In CHF mn Growth in percent in LC

-1.1% +8.5% +13.3% +5.6% +6.6% (HY 2016)

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EMEAACCELERATED BUILD‐UP OF PRESENCE

EMEA KEY INITIATIVES & ACTIONS

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Successful integration of acquisitions Further roll-out of acquired AkzoNobel Building Adhesives and Everbuild product

range for interior finishing New national subsidiaries in Kuwait, Djibouti and Cameroon Strengthening of regional Target Market support to drive strategic initiatives Supply chain efficiency improvements

KEY INVESTMENTS

New plants since 2012 2nd plant Russia (Rzhev, 2012) 3rd plant Russia (St. Petersburg, March 2013) 1st plant Iraq (Erbil, June 2013) 2nd plant South Africa (Johannesburg, June

2013) 1st plant Ukraine (Kiev, June 2013) 2nd plant Romania (Cluj, September 2013) 1st plant Angola (Luanda, November 2013) 1st plant Serbia (Simanovci, September 2014) 2nd plant United Arabic Emirates (Dubai, March

2015) 1st plant Réunion Island (March 2015) 4th plant Russia (Volgograd, August 2015) 1st plant Nigeria (Lagos, September 2015) 1st plant Ivory Coast (Abidjan, September 2015) 2nd plant in Greece (Athens, January 2016)

KEY INVESTMENTS ACCELERATED BUILD-UP OF MANUFACTURING FOOTPRINT

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New national subsidiaries since 2012: 2012 Iraq Qatar

2013 Belarus Estonia Oman

2014 Albania Bosnia-Herzegovina Mozambique Ivory Coast Nigeria

KEY INVESTMENTS EXPANSION WITH OWN NATIONAL SUBSIDIARIES

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2015 Ethiopia Tanzania

2016 Kuwait Djibouti Cameroon

ACQUISITIONS IN EMEA SINCE 2012 NEW BUSINESSES SERVE AS GROWTH PLATFORMS IN OUR MARKETS

Company Country Target Market Year

Ruetgers Germany Flooring 2012

Akzo Nobel Building Adhesives Europe Sealing&Bonding, Flooring, Mortars

2013

Everbuild Building Products United Kingdom Sealing&Bonding, Mortars 2013

Klebag Switzerland Sealing&Bonding, Flooring 2014

Duro-Moza Mozambique Mortars 2015

Axson Technologies Global Industry 2015

Addiment Italia Europe Concrete 2015

Total annual sales: CHF 520 million 8

9

AKZONOBEL BUILDING ADHESIVES, EUROPE WIDE PRODUCT RANGE IN MORTARS Acquisition of AkzoNobel Building Adhesives 2013 CHF 228 million sales, 550 employees Strong focus on the top quality segment

through its leading brands Schönox, Cégécol and Casco

Significantly extended Sika’s product range for interior finishing – mainly with tile adhesives, floor adhesives and floor leveling products

Product range and sales particularly targeting the professional craftsman

Access to new distribution channels Two large factories in Germany and

France

10

EVERBUILD BUILDING PRODUCTS, UK LEADING POSITION IN THE BUILDERS MERCHANTS CHANNEL Acquisition of Everbuild Building Products 2013 CHF 90 million sales, 270 employees UK’s largest independent manufacturer

of sealants, adhesives and construction chemicals

Leading position in the builders merchants channel with strong marketing activities

Improved access to professional craftsmen

Manufacturing facility for full range of construction chemicals with laboratories

With the acquisition Sika became market leader in the UK

KEY PROJECTS

KEY PROJECTS FOLLOBANEN TUNNEL, OSLO, NORWAY

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Project Description Two-tube railway tunnel, 50 km total Construction period: 2014-2021 Sika Products Concrete admixtures: Sika® ViscoCrete® PC-35 Sika Rapid C-100 Waterproofing: Sikaplan® WT 2200-22HL2

KEY PROJECTS BLADE BONDING AT GAMESA, SPAIN

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Project Description Numerous projects with Gamesa (Wind Energy) Sika Products SikaForce® 2K SikaDur® WTG Application: Blade bonding (PU & Epoxy adhesives)

Project Description The project aims to achieve Platinum Leadership in Energy and Environmental Design (LEED) certification. The project’s budget is €566 million. Sika Products Concrete admixtures Waterproofing Roofing Flooring Sealing & Bonding Mortars

KEY PROJECT STAVROS NIARCHOS FOUNDATION CULTURAL CENTER, ATHENS, GREECE

Project Description Shopping Center in Oxford Sika Products Waterproofing: 35,000 m2 of SikaProof® plus accessories

KEY PROJECT WESTGATE SHOPPING CENTRE, OXFORD, UK

Project Description Dumfries & Galloway Hospital - Scotland (Dual System Project) Sika Products Concrete admixtures for watertight concrete, 28,000 m2 of SikaProof ®

KEY PROJECT DUMFRIES & GALLOWAY HOSPITAL, SCOTLAND, UK

KEY PROJECTS GRAND PARIS, FRANCE

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Project Description 200 km underground subway 75 stations Construction period: 2015-2030 Sika Products Concrete, Waterproofing, Flooring and Mortars Main material: Sika® ViscoCrete®

THANK YOU FOR YOUR ATTENTION

AREA AFRICA JEAN DE MARTRES AREA MANAGER AFRICA SIKA CAPITAL MARKETS DAY 2016

MARKET POTENTIAL OF AFRICA Major demographic and

social changes From 0.2 billion people in 1950

to 1.1 billion in 2010 Population will double to more than

2.2 billion by 2050 25% are young people (< 20 years) Growing consumer class

Rapid urbanization 40% of Africans in cities by 2030 More than 1.4 billion people in cities

by 2050 versus 0.5 billion now 65 cities > 10 million people by 2030

Economic growth GDP forecast with average of

6% per year

Huge agricultural potential

Natural resources Oil & gas, metals, minerals…

Main reserves and production

Hot spots

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MARKET POTENTIAL OF AFRICA: POPULATION TO DOUBLE BY 2050 1.4 BILLION INHABITANTS IN MEGA CITIES

Algiers Tunis

Cairo Casablanca

Lagos Abidjan

Accra Nairobi

Lusaka

Johannesburg

Luanda

Addis Abebba

Kinshasa

Nigeria > 185mn

Egypt > 82 mn

Ethiopia > 85 mn

Kenya > 45 mn

Tanzania > 42 mn

S Africa > 55 mn

Algeria > 40 mn

Morocco > 35 mn

Angola > 20 mn

Moz > 25 mn

I Coast > 25 mn Cam

> 20 mn

Tun > 10 mn

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Sika local subsidiaries

footprint covers > 75%

of Africa cement

consumption

MARKET POTENTIAL OF AFRICA AND CONSTRUCTION MEGATRENDS

2015 cement consumption

225 million tons

Infrastructure projects: roads, ports, airports, water, power, telecoms…

Increasing projects in health, education, industry

Growing needs in real estate and construction

55 mn tons

< 1.5 mn tons

2 to 5 mn tons

7 to 10 mn tons

10 to 25 mn tons

Côte d’Ivoire

Nigeria

Angola

Botswana

Kenya

Egypt

Algeria

Zambia

Tanzania

Cameroun

Ethiopia

Senegal

Uganda Gabon

Namibia Zimbabwe Mauritius

Congo

55

10

8

4

2 13

8

3 20

14

22

5

Djibouti

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AFRICA ACCELERATED BUILD-UP OF PRESENCE

INVESTMENTS IN NEW SUBSIDIARIES ACCELERATED BUILD-UP OF PRESENCE

New subsidiaries with full set-up of local production, sales, R&D and technical assistance locally to be close to customers:

2012 : Angola, Kenya

2014 : Nigeria, Ivory Coast, Mozambique

2015 : Ethiopia, Tanzania

2016 : Cameroon, Djibouti

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INVESTMENTS IN NEW SUBSIDIARIES LOCAL MANUFACTURING AND SALES AS A COMPETITIVE ADVANTAGE

Production of concrete admixtures in Angola, Kenya, Nigeria, Ivory Coast, Tanzania, Mozambique and Ethiopia

Sika is the first company to manufacture locally

Improved delivery times

Concrete mix design adapted to customer needs

Customer support on site

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INVESTMENTS IN ACQUISITIONS FIRST TAKEOVER ON AFRICAN CONTINENT

2014 Mozambique, Duro-Moza

Acquisition of refurbishment mortars and tile adhesives manufacturer located in Maputo

Acceleration of market penetration by broadening Sika’s existing product range

Adding new technology segments such as flooring, admixtures and sealants

Investment in expansion of production capacity, quality and technical assistance for customers

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KEY PROJECTS DANGOTE FERTILIZER PLANT IN LAGOS, NIGERIA

Project Description Largest fertilizer plant in Africa with 12 buildings, USD 1.2 billion Sika Products

2 production units: 2,850 tons of urea and 2,200 tons of ammonium per day

Selling admixtures for ready-mixed concrete and precast on site such as :

Sikament® and Viscocrete® admixtures

Grouts, flooring and concrete repairs mortars

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KEY PROJECTS NEW RABAT THEATER, MOROCCO

Project Description

Zaha Hadid project

Theater with capacity for 1,800 visitors

Sika Products

Complex construction requirements especially for waterproofing

Parts of the building permanently below water level relying on SikaProof® solution

Basement waterproofing sales of 18,000 m² SikaProof ® membranes

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KEY PROJECTS IN AFRICA MALL OF EGYPT IN CAIRO, EGYPT

Project Description Super-regional mall of 160,000 m² in Cairo metropolis Sika Products

Concrete admixtures

Roofing systems

Sealing & bonding

Mortars

Flooring

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Offer full range of products and solutions as well as local production

Creation of local employment

Build-up of local R&D

Develop local distributors’ network

Offer technical support to clients

Assistance and demonstrators on site

Enhance quality level of construction

Transfer of know-how

Establish partnerships with universities

Increase in construction and industry skills by providing assistance and training

MAJOR GROWTH POTENTIAL FOR SIKA IN AFRICA COMPETITIVE ADVANTAGE AND STRATEGY FOR MARKET PENETRATION

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THANK YOU FOR YOUR ATTENTION

EASTERN EUROPE AREA ILEANA NICOLAE AREA MANAGER EUROPE EAST SIKA CAPITAL MARKETS DAY 2016

EASTERN EUROPE AREA A REGION WITH GREAT POTENTIAL

4.6% OF WORLD’S TOTAL POPULATION

13% OF THE GLOBE’S LAND MASS (21 MILLION KM2)

219 mn PEOPLE LIVE IN THE RUSSIAN-SPEAKING AREA

RUSSIAN-SPEAKING COUNTRIES

EUROPE EAST

109 RECOGNIZED LANGUAGES (91 INSTITUTIONALIZED)

17 CITIES WITH OVER 1 MILLION INHABITANTS

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CEMENT CONSUMPTION IN EASTERN EUROPE IN 2015 CONSTRUCTION SECTOR IN RUSSIA ACCOUNTS FOR 6.5% OF GDP

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Russia

Poland

Ukraine

Kazakhstan

Romania

Belarus

Czech Republic

Hungary

Bulgaria

Slovakia Serbia

Croatia

Bosnia Kosovo Moldova

Slovenia Macedonia

Montenegro

Growing demand for process materials • Urbanization • Increasing demand for sustainability

and higher standard of living • Increasing demand for

refurbishment and maintenance Fragmented global industry • Many local players • Global presence

4

COUNTRIES WITH MAJOR GROWTH POTENTIAL INCREASED INFRASTRUCTURE SPENDING

Russia

Population: 143 million

Longest distance: 10,000 km

GDP CHF 1.190 billion (growth: 6.7% in 2016 and 7.3% in 2017)

Russia is the fifth biggest economy in the world

Turnaround and growth is expected to return to the Russian construction industry in 2016, after two years of substantial contraction (2014 & 2015)

Population: 38 million

Longest distance: 700 km

GDP CHF 463 billion (growth: +3.2% in 2016 and 3.5% in 2017)

Close to western Europe – massive flow of European investments

Industrial sector and infrastructure are slowing down but there is great potential in refurbishment and residential sector

Safe, stable business environment

Population: 19 million

Longest distance: 800 km

GDP CHF 171 billion (growth: 3.4% in 2016 and 5.9% in 2017)

Recovering economy

High potential in refurbishment and residential sector

Poland Romania

SIKA'S PRESENCE IN RUSSIA FOCUS ON REGIONS WITH HIGH POPULATION DENSITY 

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EASTERN EUROPE AREA KEY INITIATIVES & ACTIONS

Continue the development of strong local teams

Opening of national subsidiaries

Create local employment

Investments in technical centers and training facilities – know-how transfer

Strengthen the manufacturing footprint to be closer to customers

Localize supply chain to improve cost structures

Use the countries’ natural resources and raw materials

Local production helps to hedge the changes in currencies (especially in countries with an instable political environment like Russia)

Strengthen Key Project Management and specification selling approach

Engage architects, engineers and key customers in technical seminars and training sessions

Invest in other distribution channels

Training & industry technical center (Krakow, Poland, 2013) Office, warehouse including new mortar plant (Belgrade, Serbia, 2014) Mortar plant (Cluj, Romania, 2014)

KEY INVESTMENTS ACCELERATED BUILD-UP OF FOOTPRINT

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New premises including offices (Brasov, Romania, 2015) Polymer (PCE) production in existing site (Lobnya,

Russia, 2015) Mortar production (Volgograd, 2015) Admixtures production (Volgograd, Russia March 2016) Admixtures production (Modrice, Czech Republic 2016)

KEY INVESTMENTS ACCELERATED BUILD-UP OF FOOTPRINT

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GROWTH STRATEGY IN RUSSIA

CHF 6.7 billion of market potential in Russia CHF 2 billion in the Moscow area alone Further important regions are the South and

Volga area with CHF 1.2 billion each Russian construction sector accounts for 6.5% of GDP Highest cement consumption in the area with

450 kg/capita Turnaround in Russian construction industry in 2016:

FIFA 2018 World Cup Construction of Moscow-Saint Petersburg

motorway Construction of Moscow Central Ring Roads Increase in railway construction activity in

Siberia & Far-East Active construction work on the Siberia

gas pipeline

GROWTH STRATEGY RUSSIA

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SIKA'S PRESENCE IN RUSSIA FOCUS ON REGIONS WITH HIGH POPULATION DENSITY

OFFICE IN KAZAN

ADMIXTURE PLANT IN RZHEV

HEAD OFFICE IN LOBNYA

OFFICE IN SAINT PETERSBURG

ADMIXTURE PLANT IN LOBNYA

OFFICE IN YEKATERINBURG 1ST BLENDING STATION IN MOSCOW 2007

2007

2003

2005

2009

ADMIXTURE PLANT IN SAINT PETERSBURG

IN-PAIL TINTING IN LOBNYA 2013

2013

OFFICE IN KRASNODAR 2008

DRY MORTARS IN RZHEV

POLYCARBOXYLATES IN LOBNYA MORTARS IN VOLGOGRAD

2015 2015

2010

2010

2010

2011

2013

SIKA SUBSIDIARY IN RUSSIA ESTABLISHED IN MOSCOW

10 YEARS IN RUSSIA

SIKA’S DEVELOPMENT IN RUSSIA

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ACCELERATED INVESTMENT PLAN IN RUSSIA MOSCOW, SAINT PETERSBURG, VOLGOGRAD

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Localize supply chain in Russia due to the huge import and transport costs

Russia offers good raw materials and important local natural resources Authorities encourage local production, creation of new jobs and use

of local products in the construction sector Moscow has 12 million inhabitants -> mega city concept

2013: extension of production in Lobnya (Moscow) and opening of

new plant in Rzhev (200 km from Moscow) to ensure Sika’s market access to the dry mortar segment

2015: New production site in Volgograd Extension of sales channels in the south Product supplies to the Southern Federal District and the Volga

Federal District Optimized cost structure (transportation and customs) More than 90% of the raw materials used in production are of

local origin

ACCELERATED INVESTMENT PLAN IN RUSSIA VOLGA, URAL AND FAR EAST

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2015: Start of polymer (PCE) production Only plant in Russian territory for polycarboxylates Reduction of logistics costs Optimization of price of finished goods Strengthening of Sika’s position in admixture market Product supplies of admixture raw materials to other plants in

Russia and neighboring countries: Ukraine, Belarus, Kazakhstan, etc.

2016: Start of admixtures production in Volgograd

Satisfy needs of the construction market in the southern regions with high-quality concrete admixtures

Proximity to customers Improved delivery time for goods

KEY PROJECTS LACHTA CENTER IN SAINT PETERSBURG (GUINNESS BOOK)

Project Description The center will include the first super tall skyscraper in the city, a scientific and educational complex, sports and leisure facilities, and an outdoor amphitheater. The 462 meter high tower of Lakhta Center is expected to be the tallest building in Russia and Europe. Concrete pouring of the bottom slab of the box-shaped foundation was registered by Guinness World Records as the largest continuous concrete pour. 250,000 m³ of concrete Sika® ViscoCrete®, Sika® Retarder, Antisol®, SikaAer®-200S 200,000 m2 of facades Sealants, adhesives and membranes 15

KEY PROJECTS STADIUM "ZENIT" IN SAINT PETERSBURG (FIFA 2018 PROJECT)

Project Description The 68,000 seats stadium will host FIFA 2018 World Cup. The project started in 2007 and it will end in 2018. 253,000 m³ of concrete Sika® ViscoCrete® 5-600 SP SikaPlast® 2190 LS 1,100 m² of dry mortars For structural strengthening 1,000 m² of roofing Sika-Trocal® metal sheet type S 65,000 m² flooring Epoxy resins flooring systems

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KEY PROJECTS "TUSHINO 2018"

Project Description Covering 224 hectares, Tushino is a residential area with sports & recreational facilities, municipal and industrial, public and business buildings (5 schools & 9 kindergartens, hotel, shops, hospitals, gas stations, car parking's, indoor football stadium, Ice Palace, Sport center, Hospital and Stadium (for FIFA WC 2018). The project will be completed in 2023. 193,500 m³ of concrete superplasticizers 2,000,000 m2 of waterproofing Sikaplan® WP 1100-20HL accessories, injections 42,000 m2 of roofing TPO membranes for ballasted and green roofs Liquid applied membranes 1,400,000 m2 of flooring Sikafloor® solutions for halls, parking, stadium, kindergartens and infrastructure 40 tons of dry mortars

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KEY PROJECTS NEW RAILWAY STATION IN ASTANA, KAZAKHSTAN

Project Description A new railway station with the trains arriving directly into the six-storey building, that has the capacity of 35,000 people a day. Opening in 2017. 57,400 m2 of waterproofing bituminous membranes, mortars and joint filling systems 5,000 m2 of dry mortars 57,400 m2 of flooring 12,000 m2 of facades SikaSil IG-25®

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Project Description The new generation of VW commercial vehicles will be manufactured in a modern car factory covering 220 ha. Production will be launched in the second half of 2016. 70,000 m3 of concrete Superplasticizers, air entrainers, anti-freeze, Sika® ViscoCrete® 800,000 m2 of roofing FPO membrane and vapor control layer + accessories 345,000 m2 of flooring Epoxy and PU flooring systems for conductive (antistatic) floors 450,000 m2 of protective coatings SikaCor® Steel Protect VHS Rapid 60 tons of dry mortars

KEY PROJECTS VW CRAFTER PLANT WRZEŚNIA, POLAND

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Project Description The new five-star hotel will have 165 rooms, 2 banquet halls for 500 guests, several conference halls, a presidential suite, a spa center with a swimming pool and fitness zone. On the 21st floor there will be a restaurant with a panoramic view of Ljubljana. 15,300 m³ of concrete Antisol®-E 4,500 m2 waterproofing self-adhesive membranes SikaProof® joint filling systems Sika Waterbars® 5,300 m2 flooring cementitious systems, epoxy resins for antistatic floors and PU systems for decorative floors

KEY PROJECTS HOTEL INTERCONTINENTAL LJUBLJANA, SLOVENIA

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KEY PROJECTS "PARK LAKE" BUCURESTI - SHOPPING MALL , ROMANIA

Project Description The biggest shopping mall ever built in Romania, with Sika’s watertight concrete technology. The mall was opend in September 2016. 100,000 m3 of concrete Superplasticizers, fibers and concrete surface treatments 7,000 m2 of waterproofing PVC membranes, bituminous membranes, mortars and joint filling systems 44,480 m2 of roofing FPO membrane for green and ballasted roofs, stone wool, liquid membranes and vapor control layer + accessories 45 tons of dry mortars Epoxy repair mortars, grouts, anchoring systems and adhesives for structural strengthening systems with CarboDur® 1,000 m2 of flooring Concrete treatment systems and hardeners 6,000 m2 of facades Membranes and bonding systems

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KEY PROJECTS SIGHISOARA RAILWAY TUNNEL, ROMANIA

Project Description First major tunnel after 30 years in Romania having the total length of 1,2 km. The tunnel will be finished in 2017. 90,000 m3 of concrete Sika® ViscoCrete® SC-900, Sika fibers, shotcrete, anti-freeze and release agents 40,000 m2 of waterproofing PVC membranes, bituminous membranes, mortars and joint filling systems 13 tons of dry mortars Repair mortars, injections, rigid bonding and grouting systems

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THANK YOU FOR YOUR ATTENTION