REGION ASIA/PACIFIC HEINZ GISEL REGIONAL MANAGER ASIA/PACIFIC SIKA CAPITAL MARKETS DAY 2016

NET SALES ASIA/PACIFIC STRONG PERFORMANCE, CHINA SLOWED DOWN GROWTH IN 2015

838

932

974

1,040 1,017

800

850

900

950

1'000

1'050

1'100

11 12 13 14 15 16FC

In CHF mn Growth in percent in LC

+6.6% +12.7% +12.9% +2.1% +4.6% (HY 2016)

2

ASIA/PACIFIC ACCELERATED BUILD-UP OF PRESENCE

Source: UN data, OICA, IEA 4

ASIA – A HUGE MARKET WITH LARGE GROWTH POTENTIAL

650 million PEOPLE LIVE IN SOUTHEAST ASIA

47% OF PEOPLE LIVING IN URBAN AREAS , INCREASING TO >60% BY 2050

60% OF THE WORLD’S TOTAL POPULATION LIVES IN ASIA

16 OF WORLD’S TOP 29 MEGA CITIES IN ASIA

ASIA SOUTHEAST ASIA

0

1

2

3

4

5

6

7

8

9

Cambodia Indonesia Malaysia Myanmar Philippines Singapore Thailand Vietnam

GDP (expenditure), real growth % 2016

2017

Source : IMA Asia and Worldbank 5

GDP DEVELOPMENT OF SOUTHEAST ASIA

6

COUNTRIES WITH THE GREATEST POTENTIAL INCREASED INFRASTRUCTURE SPENDING

Population: 260 million (4th largest population)

Longest distance: 5,300 km (from East to West)

GDP growth: 5.3% (2016) and 6.3% (2017)

Reforms are gaining momentum

Strong capital inflows expected with growth in manufacturing sector

Total construction will be buoyed by residential and infrastructure construction

Population: 103 million (12th largest population)

Longest distance: 1,900 km (from North to South)

GDP growth: 6.3% (2016) and 6.0% (2017)

Strong growth outlook has fuelled a surge in capital inflows

Commitment by new government to spend 5% of GDP on infrastructure

Growth in building permits and increased activity in non-residential and infrastructure spending

INDONESIA PHILIPPINES

7

COUNTRIES WITH THE GREATEST POTENTIAL INVESTMENTS IN ALL SECTORS

Population: 70 million (top 20)

Longest distance: 1,700 km (from North to South)

GDP growth: 3.3% (2016) and 3.8% (2017)

Strong growth outlook with government’s heavy spending on public infrastructure master plan

Private sector to receive a boost including mass rapid transit lines, motorways, renewable energy power plant, seaports, airport expansion, etc.

Positive private investments, mostly in residential buildings

Population: 95 million (top 20)

Longest distance: 1,700 km (from North to South)

GDP growth: 5.6% (2016) and 6.1% (2017)

Rising wealth resulting in a surge in residential sector

Development of refinery and petrochemical complex

Strong growth in manufacturing sector

THAILAND VIETNAM

SOUTHEAST ASIA ACCELERATED BUILD-UP OF PRESENCE

9

SOUTHEAST ASIA KEY INITIATIVES & ACTIONS

Strengthen the manufacturing footprint

Open a national subsidiary in Myanmar

Open a regional manufacturing facility for polymers in Vietnam

Open a Regional Technology Center for mortar products in Singapore

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

10

STRONG MANAGEMENT TEAMS EXPANSION BASED ON LONG EXPERIENCE AND KNOW-HOW

Local management averages

13 years of service with Sika

50

average hours of training annually per management team member

KEY INVESTMENTS

New plants 2012-2015:

4th plant Australia (Melbourne, June 2012)

6th plant Japan (Shunan, June 2012)

1st plant Mongolia (Ulaanbaatar, December 2012)

11th plant China (Chongqing, August 2013)

2nd plant Vietnam (Hanoi, September 2013)

5th plant Australia (Adelaide, December 2013)

2nd plant Indonesia (Surabaya, May 2014)

3rd plant Malaysia (Ipoh, May 2014)

6th plant India (Jhagadia, June 2014)

2nd plant Singapore (Singapore, October 2014)

1st plant Sri Lanka (Ekala, March 2015)

8th plant Japan (Osaka, July 2015)

KEY INVESTMENTS ACCELERATED BUILD-UP OF MANUFACTURING FOOTPRINT

1st plant in Cambodia

Production of concrete admixtures

Sika is tapping into the potential in Cambodia's

booming construction industry, which grew by

20% in 2015

Increased investments in construction sector as

the younger generation is growing and moving

to the cities

CONTINUED EXECUTION OF SUPPLY CHAIN EXPANSION PHNOM PENH, CAMBODIA - FEBRUARY 2016

13

1st plant in Myanmar

Production of concrete admixtures

Sika is the first construction chemicals supplier

to manufacture locally in Myanmar

Customers benefit from short production and

delivery times, as well as concrete admixture

compositions that are tailored to the local raw

materials

CONTINUED EXECUTION OF SUPPLY CHAIN EXPANSION YANGON, MYANMAR - FEBRUARY 2016

14

2nd plant in Thailand

One of Sika’s biggest factories in Southeast Asia

– production capacity of 100,000 tons of

mortars and 65,000 tons of concrete

admixtures

Will meet the needs of Thailand’s booming

construction market and expand local product

portfolio

CONTINUED EXECUTION OF SUPPLY CHAIN EXPANSION SARABURI, THAILAND - JUNE 2016

15

Increased capacities for concrete admixtures

and synthetic fibers

The facility combines two existing plants and

three regional warehouses that had reached

the limit of their capacity

By developing and expanding the product

portfolio, Sika is responding to the strong

demand from customers in Western Australia

CONTINUED EXECUTION OF SUPPLY CHAIN EXPANSION PERTH, AUSTRALIA - JULY 2016

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New national subsidiaries since 2012:

2012

Mongolia

2014

Sri Lanka

2015

Myanmar

KEY INVESTMENTS EXPANSION WITH OWN NATIONAL SUBSIDIARIES

17

Acquisitions since 2012:

2012

South Korea: Yean-Il (Waterproofing)

2013

Singapore/Malaysia: LCS Optiroc (Mortar Products)

Australia: Radmix Resources Pty Ltd (Concrete – synthetic fibers)

India: Texsa India Ltd (Roofing, Waterproofing)

2014

South Korea: World Industries (Flooring, Coating)

2015

Australia: CTA (Mortar Products)

KEY INVESTMENTS ACQUISITIONS AS GROWTH PLATFORM

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KEY PROJECTS

KEY PROJECT MAHANAKHON BUILDING, BANGKOK, THAILAND

Project Description Luxury mixed-development project 314 meters high with 77 storeys, to open in late 2016

Sika Products 620,000 liters of Sikament® range concrete admixtures

Waterproofing and Roofing: 41,000 m2 area with Sika® TopSeal® -107 and Sikalastic®-560

Mortars: 100 tons of Optiroc® tile adhesive and Sika® Levelling Mortar

High-performance flooring: Sikafloor®-21 PurCem® TH

Sealing&Bonding: Sikaflex® Construction

20

KEY PROJECT CA PASS TUNNEL, VIETNAM

Project Description CA Pass consists of 2 single tunnels, each at 4 km in length, started in 2015, to be completed in 2017 Sika Products Concrete admixtures: 3,400,000 liters of Sika® ViscoCrete®, Sigunit®, Sikament®, Sikaplast®, Plastocrete®, Plastiment®

Waterproofing: 90,000 m2 with Sikaplan® and 50 tons with Sika ® TopSeal®-107

60 tons of mortars

21

KEY PROJECT MANILA BAY RESORTS (OKADA MANILA), PHILIPPINES

22

Project Description World-class integrated resort consists of a luxury hotel with 993 rooms and a 90,000 square-feet entertainment venue scheduled for a grand opening in late 2016 (Phase 1) Sika Products High-performance flooring for an area of 8,000 m2 with Sikafloor®-263 SL

50 tons of various mortar products

Sealing and Bonding: Sikaflex®-Construction and Sika® Firerate

Waterproofing: Sika® TopSeal® -107

KEY PROJECT NEAK LOEUNG RIVER CABLE BRIDGE, CAMBODIA

Project Description Neak Loeung Bridge spanning over 2 km is the longest cable bridge crossing over Mekong River. It opened to traffic in 2015. Sika Products Concrete admixtures: 450,000 liters of Sikament® range Mortars: 50 tons of SikaGrout®, Sikadur®, SikaRep® S, SikaLatex®, Sika-102, etc. Waterproofing: Sika® Raintite® Sealing & Bonding: Sikaflex® Construction Protective coating: Sika® Igolflex®

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KEY PROJECT DUO RESIDENCES, SINGAPORE

Project Description Exciting mixed-development project 192 meters high with 37 storeys, scheduled for completion in 2017 Sika Products Waterproofing: 13,000 m2 area with Sarnafil® G476, Sikalastic®-560

Mortars: 7,800 tons of various Optiroc® mortar products - floor screed eco, render eco, tile adhesive & tile grout

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KEY PROJECT LIGHT RAILWAY TRANSIT (LRT) PALEMBANG, INDONESIA

25

Project Description Palembang LRT is a 25-km long LRT system currently under construction in Palembang - the 2nd largest city in Sumatera, Indonesia. This LRT infrastructure project is constructed for the 2018 Asian Games. Sika Products High-performance concrete admixtures with 300,000 liters of Sika® ViscoCrete® Segmental bridge adhesive with 10 tons of Sikadur-31 SBA 60 tons of concrete repairs, grouting, mortars

KEY PROJECT HONG KONG – ZHUHAI – MACAU BRIDGE (HZMB) PROJECT

Project Description HZMB is an ongoing construction mega project at 50 km length. It consists of a series of bridges and tunnels that will connect Hong Kong, Macau and Zhuhai, three major cities on the Pearl River Delta in China. Completion by 2020.

Sika Products High-performance concrete admixtures for foundations with 1,370,000 liters of Sika® ViscoCrete® 1200NT and 820,000 liters of Plastiment® VZ

26

KEY PROJECT CHINA EXPO COMPLEX, SHANGHAI

Project Description China Expo Complex is the largest single block building and exhibition complex in the world with a total construction area of 1.47 million m2. It opened in 2015.

Sika Products High-performance flooring for an area of 600,000 m2 with Sikafloor®-264 and Sikafloor®-2 SynTop

Sealing and Bonding for a facade area of 200,000 m2 and a roof area of 100,000 m2 with Sikasil® SG-500CN, Sikasil® WS-305CN

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KEY PROJECT CSA COBAR COPPER MINE, AUSTRALIA

Project Description CSA Mine is an underground copper mine located in Cobar, Central Western NSW. It produces over 1.1 million tons of copper ore and in excess of 185,000 tons of copper concentrate per annum.

Sika Products Phase 1 supply with Radmix 65 fiber

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KEY PROJECT AUCKLAND CITY RAIL LINK, NEW ZEALAND

City Rail Link Enabling Works

29

Project Description The City Rail Link (CRL) is a 3.4 km long twin-tunnel project underneath the city center. Currently under construction, it will open in 2021.

Sika Products Waterproofing: 18,000 m2 area with SikaProof®-A / Sikaplan® WP 1100-20HL

Other solutions: Flooring Roofing

Tile Adhesives

Sealing & Bonding Concrete

KEY PROJECT TOKYO OLYMPICS 2020 - OVERVIEW

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Tokyo, the vibrant city of Japan, is the host of the 2020 Olympics

It has been dubbed the Olympics of the Future, utilizing robotics technology for directions, vehicles, instant-translation, etc.

Estimated total construction costs JPY 10 trillion* (CHF 9 billion) to cover the building of Olympics facilities (39 venues) and various types of indirectly related construction investment

Construction to begin at the end of 2016 until early 2020

* Source: Bank of Japan

KEY PROJECT TOKYO OLYMPICS 2020 – NEW NATIONAL STADIUM

NEW NATIONAL STADIUM

Waterproofing

Flooring

Concrete

31

KEY PROJECT TOKYO OLYMPICS 2020 – OLYMPIC AQUATIC CENTER

OLYMPIC AQUATIC CENTER Flooring

Concrete

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KEY PROJECT TOKYO OLYMPICS 2020 – OLYMPIC VILLAGE

OLYMPIC VILLAGE 22 mid-rise condominiums 2 high-rise condominiums 1 commercial building Concrete Waterproofing Flooring Others

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KEY PROJECT TOKYO OLYMPICS 2020 – OTHER EXCITING PROJECTS

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OTHER EXCITING PROJECTS 1. Sea Forest Waterway 2. Arieka Arena 3. Tokyo Big Sight 4. Refurbishment of Tokyo Metropolitan Highways

Concrete

Flooring

Waterproofing

Refurbishment

1 2

3 4

THANK YOU FOR YOUR ATTENTION

SIKA MALAYSIA SAU YOONG CHAN GENERAL MANAGER MALAYSIA SIKA CAPITAL MARKETS DAY 2016

MALAYSIA GOVERNMENT INVESTMENTS IN INFRASTRUCTURE

2

Population: 31 million

GDP growth: 4.5% (2016), 4.5% (2017)

The expansion of Malaysia’s infrastructure is a government priority

The 11th Malaysia Plan for the years 2016-20 will provide stimuli for infrastructure construction and thus for major railway, road, bridge and energy projects

Key projects in the pipeline such as urban rail transportation systems, new oil refinery in the South (Pengerang), bridges, high-speed train from Singapore to Kuala Lumpur

MALAYSIA

MALAYSIA NATIONWIDE FOOTPRINT

EXPANSION OF THE MORTAR BUSINESS

5

“JOB SITE MIX”: 80% OF GLOBALLY INSTALLED TILES HUGE SHIFT TOWARDS PREMIXED MORTARS

20%

80%

North America

15%

85%

Middle America

80%

20%

Latin America

30% 70%

Western Europe

89%

11%

Middle East & Africa

95%

5%

India

65% 35%

Eastern Europe

97%

3%

China

8%

Southeast Asia

92%

15%

85%

Australia

«Job Site Mix» Mortars

Premixed Mortars

SIGNIFICANT GROWTH POTENTIAL IN THE MORTAR MARKET

6

Site batched tile adhesives are still strongly being used as labor cost is low

Megatrend urbanization with multi-storey buildings leads to growing demand for premixed mortars

Increasing quality & performance requirements

Technology shift in emerging markets towards premixed mortars

from «job site mix» mortars to premixed mortars

MORTAR BUSINESS IS A PRIORITY FOR SIKA MALAYSIA INITIATIVES & ACTIONS

Continued build-up of the supply chain with additional production sites

Adaptation of the organizational structure creating a special focus on

“BUILDING FINISHING”

Focus on the biggest development region with investments in sales force

Differentiate Sika by emphasizing on technical selling and solution providing

Aim to become market leader

7

8

INVESTMENTS IN EXPANSION OF MORTAR BUSINESS ACQUISITION OF LCS OPTIROC IN SINGAPORE/MALAYSIA

Acquisition of LCS Optiroc in 2013

Optiroc with leading position in the premixed mortar market

Strengthened Sika’s product range for interior finishing

Two established factories in Singapore and Malaysia reinforced the regional supply chain

Enabled Sika Singapore to significantly gain share in construction market.

Strengthened Sika Malaysia’s presence in the south

Base for expansion into mortars in Asia/Pacific region

INVESTMENTS IN EXPANSION OF MORTAR BUSINESS MORTAR PRODUCTION OF 280,000 TONS IN 4 PLANTS

EXPANSION OF MORTAR BUSINESS KEY PROJECT ACHIEVEMENTS - SINGAPORE, PUBLIC SECTOR PROJECTS

10

Woodlands N5C21

Yishun N4C17

Hougang N9C19

Seng Kang N3 C28 & 28A

EXPANSION OF MORTAR BUSINESS KEY PROJECT ACHIEVEMENTS - SINGAPORE, PRIVATE SECTOR PROJECTS

11

Futura (Apartments at Leonie Hill) OUE Building (6 Shenton Way)

Marina One DUO

KEY PROJECTS

The Ulu Jelai hydroelectric power facility is situated in the Malaysian state of Pahang

90 meters high, >25 km tunnel systems

Annual output of approximately 326 GWh of electricity increases Malaysia’s share of renewable energies while at the same time reducing its annual emissions of CO2 by 250,000 tons

KEY PROJECT ULU JELAI HYDROELECTRIC POWER PLANT, PAHANG

13

Broad spectrum of Sika products contributed to the completion of the project:

750,000 liters of retarders

1,100,000 liters of superplasticizers

900,000 liters of accelerators

700,000 kg of steel fibers

200 tons of grouts and mortars

Various other products

KEY PROJECT ULU JELAI HYDROELECTRIC POWER PLANT, PAHANG

14

MATRADE (Malaysia External Trade Development Corporation) Center The largest exhibition and convention center in Malaysia Sika supplied the roofing solution: 57,000 m2 Sarnafil® membranes and fixing accessories

KEY PROJECT MATRADE CENTER, KUALA LUMPUR

15

KEY PROJECT MATRADE CENTER, KUALA LUMPUR

Malaysian oil and gas company Petronas is developing a refinery and petrochemical integrated development project (RAPID) and other associated facilities in Pengerang, Southern Johor, Malaysia. The project is called Pengerang Integrated Complex (PIC).

Sika potential: Waterproofing, mortars, flooring, reinforcement, sealing & bonding

KEY PROJECT PETRONAS RAPID, PENGERANG

17

Extension of Kuala Lumpur’s Mass Rapid Transit rail transportation system. Expected to transfer more than 500,000 passengers a day when finished.

52.2 km total length

13.5 km underground tracks

38.7 km elevated tracks

11 underground stations

26 elevated stations

15 stations with park & ride facility

KEY PROJECT MRT LINE 2, KUALA LUMPUR

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Sika potential: Concrete admixtures, fibers, waterproofing, mortar, grouts, tile adhesives, flooring, joint sealing

THANK YOU