REGION NORTH AMERICA CHRISTOPH GANZ REGIONAL MANAGER NORTH AMERICA SIKA CAPITAL MARKETS DAY 2016

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GETTING CLOSER TO OUR CUSTOMERS AND KEY MARKETSTHE FASTEST GROWING METRO AREAS IN THE US

Source: Forbes List of the 20 fastest growing metro areas in America (2015)

NET SALES NORTH AMERICA CONTINUOUS SALES GROWTH DEVELOPMENT

617

706 711 746

839

600650700750800850900950

1,000

11 12 13 14 15 16FC

In CHF mn Growth in percent of LC

+9.0% +2.3% +7.9% +8.4% +12.7% (HY 2016)

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Getting closer to our customers and key markets Implementation of our 2018 supply chain

master plan for North America Building of new mortar and admixture plants in

fast growing metropolitan areas with the largest business potential

Increase resources to grasp business opportunities Sales force expansion in metropolitan areas Marketing campaigns focussed on metro areas Increase Project and Customer Penetration Target Market Cross Selling Specification Selling Key Project Management Key Account Management

SIKA NORTH AMERICA BUSINESS AND INVESTMENT FOCUS 2016

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Denver, Colorado (2014) One of the fastest growing metropolitan areas,

sales growing by over 20% New admixture plant ROI in just 4 months!

Atlanta, Georgia (2014) Fast growing metropolitan area with double digit

sales growth New mortar plant next to existing admixture plant 900 full trucks of mortar shipped in first year Philadelphia, Pennsylvania (2015) 5th biggest city in the USA New mortar plant next to existing admixture plant Extension of existing concrete admixture plant

KEY INVESTMENTS IN SUPPLY CHAIN PLANTS SINCE 2012

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Vancouver, British Columbia (2016) Seattle (USA) / Vancouver (Canada) are part of a

rapidly developing area New mortar and concrete admixture plant Improved product availability, reduced lead times,

faster deliveries and optimized cost structure

KEY INVESTMENTS IN SUPPLY CHAIN PLANTS SINCE 2012

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KEY INVESTMENTS ACQUISITIONS SINCE 2012 2015 USA: BMI (Mortars) Expanding our production footprint into fast

growing Bay area Expanding product offering to complement

current line and move into new market segments Stucco, mortars and self leveling products

with signature silo system for bulk delivery 2016 USA: L.M. Scofield (Concrete) US-based market leader for concrete color

additives (ready-mixed concrete) and decorative treatments for refurbishment

Buying new technology and spreading it out to Sika’s existing customer base

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KEY INVESTMENT EXPANSION OF PORTFOLIO WITH FAST GROWING CONCRETE FIBERS 2016 USA: FRC Industries (Concrete) Producer of high-quality synthetic polypropylene

fibers for concrete Strong growth trend for concrete fibers in the US,

out-pacing overall construction growth Expansion of concrete additives portfolio enables

Sika to reach new customers and to better penetrate key projects

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SIKA’S SUPPLY CHAIN IN GROWTH MARKET NORTH AMERICAACCELERATED BUILD‐UP OF PRESENCE

GAINING MARKET SHARE THROUGH SALES FORCE EXPANSION FOCUS ON MEGA CITIES AND MEGA REGIONS Increase in sales personnel in every target market and in the hot spot

areas (e.g. 20 sales reps in NYC) Sika US has >550 sales personnel out in the field

Investments in the expertise of our sales representatives Technical know-how of our sales people is building trust with our customers Building trust is our key sales argument over the competition

Close cooperation between sales teams from different target markets in big metropolitan areas

Focused marketing campaigns in hot spot metropolitan areas to increase our brand awareness and open doors to specifiers

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Driving specifications with engineers and architects gives Sika pricing power and independence when dealing with contractors and distributors

Structured approach to complex project selling processes Integrated team approaches with dedicated

Sika project leaders as a competitive advantage

Three-level sales approach: Vertical markets – mega projects and key accounts Regional cross-selling teams Local target market sales teams

GAINING MARKET SHARE THROUGH PROJECT PENETRATION CROSS SELLING AND SPECIFICATION SELLING

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THANK YOU FOR YOUR ATTENTION

MEGA CITIES AS MAJOR GROWTH DRIVERS JAMIE GENTOSO TARGET MARKET MANAGER CONCRETE NORTH AMERICA SIKA CAPITAL MARKETS DAY 2016

MEGA TREND URBANIZATION, DENSIFICATION, HIGH-RISE BUILDINGS CONSTRUCTION REQUIREMENTS AND IMPACTS

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Increased need for eco-friendly, energy-saving flat roofing solutions

such as green roof systems, cool roofs and

solar roofs

Owners demand the

use of building products with

reduced environmental

impact Higher

demand for infrastructure

and refurbishment

solutions

High-rise buildings

require higher quantity of

construction chemicals

High-rise buildings

require high performance

pumpable/self-compacting

concrete

Traffic congestion and unpredictability generates

the need for higher performing concrete

admixtures

Deeper foundations in high-rise buildings

increasing the need for complex waterproofing

solutions

Emphasis on energy savings and assurance that

buildings are air and water tight

Greater requirements for high-rise building facades – quality,

functionality, security,

aesthetics

Increased need for durability and assurance of

compatibility between products

MEGA CITY FOCUS STRONG URBANIZATION TREND IN NORTH AMERICA

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MEGA CITIES AS MAJOR GROWTH DRIVER STRATEGIC SELLING APPROACH – CROSS SELLING

Strategically targeting big cities with an integrated business development plan to increase brand awareness, develop customer relationships and identify project opportunities

“Everyday” campaign encompasses full Sika product line

City by city approach culminating with a large event to bring together owners, specifiers and customers

Success is tracked and measured

MEGA CITIES AS A MAJOR GROWTH DRIVER STRATEGIC SELLING APPROACH – MARKETING

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Houston, Texas Texas is a “mega” market for construction

with USD 120+ billion annually

Home to four of the fastest growing cities in the US

By 2040 the state of Texas will have the same population as the country of Spain, nearly doubling in just over 20 years

New plant will house new polymer reactor, admixture and mortar blending plants in Houston

Continued execution of Sika’s supply chain strategy in North America

MEGA REGIONS AS A MAJOR GROWTH DRIVER KEY INVESTMENTS

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MEGA REGIONS AS A MAJOR GROWTH DRIVER TEXAS MEGA PROJECTS

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The “Horseshoe” – USD 800 million Cheniere LNG – USD 900 million

MEGA CITY FOCUS SUPPLY CHAIN: <2H DRIVE TO BIGGEST CITIES

Innovation as part of our core strategy

Target market refurbishment: 70% of growth from product launches

Key focus on ensuring compatibility between products and full systems including acquisitions of technologies and subsequent improvement

Differentiation by introducing products that provide solutions for challenges faced in big city construction projects

MEGA CITIES AS A MAJOR GROWTH DRIVER INNOVATIVE PRODUCT LINES

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Project Description 3 miles underground transit tunnel connecting Grand Central Terminal to Queens in NYC Sika Solution Mined shaft shotcrete support & tunnel waterproofing system Sika Products Sika® Sigunit® L-72 AF SikaTard® 440 Sika® ViscoCrete® 2100 Sikaplan® WP-1100-25HL2 Sika Greenstreak Custom Wtsp SikaFuko® VT Sika Injection

KEY PROJECTS EAST SIDE ACCESS – NEW MARKETS FOR SIKA IN NORTH AMERICA

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KEY PROJECTS MGM GRAND CASINO, NATIONAL HARBOR – FAST TRACKED

Project Description MGM* Casino in Maryland 122,000 m3 of concrete. Fast track construction built in just 12 months. Sika Solution Utilize Sika CNI to consistently achieve full design strength, 35 MPa in 24 hours. Kept construction ahead of schedule. Sika Products Sika® Plastocrete® 161 Sika CNI Sika® ViscoCrete® 2100 AEA-14

*Metro-Goldwyn-Mayer

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KEY PROJECTS ST. CROIX CROSSING – TOTAL SIKA SOLUTION

Project Description Bridge over St. Croix river Segmental precast concrete box beams Sika Solution 70 MPa high-strength concrete Segmental bridge adhesive Sika Products Sikadur® 22/32 SBA/42 SikaGrout® 328 SikaRepair 223 Sika Air 260 SikaTard® 440 Sika® ViscoCrete® 2100

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KEY PROJECT APPLE HEADQUARTERS, CUPERTINO (CA) – SIKA TO MEET DEMANDING ARCHITECTURAL REQUIREMENTS

Project Description 2.7 square miles site, 5,900-space parking garage, main building has a 1-mile circumference and is visible from outer space. Sika Solutions Concrete admixtures enabled perfectly smooth, polished concrete. The curved glass panels around the building are sealed using Sika silicone sealants. Sika Products Concrete Admixtures Sarnafil Roofing Systems Flooring Solutions Sealing & Bonding Solutions (Concrete & Glass)

Full construction product range to meet customer needs Further acquisitions to close potential

product gaps Many new markets and market segments as

targets for penetration, including geographic expansion of sales force

Continued expansion of production and supply chain footprint to better serve the market and to keep up with growth

Targeted marketing with project and cross-selling focus

Supported by market growth

REGION NORTH AMERICA WELL POSITIONED FOR FUTURE GROWTH

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THANK YOU FOR YOUR ATTENTION

BUILDING MONUMENTS BUILDING HISTORY BUILDING TRUST