Core Viewpoint - The article discusses the author's long position in SXYAY shares, indicating a positive outlook on the company's future performance [1]. Group 1 - The author expresses personal opinions on the investment without receiving compensation from any company mentioned [1]. - The article emphasizes the importance of conducting due diligence and research before making investment decisions [2]. - It highlights that past performance does not guarantee future results, and opinions may not reflect the views of Seeking Alpha as a whole [3].

Financial Data and Key Metrics - Sales reached CHF 8.9 billion, with a 5.5% growth in Swiss francs, driven by organic growth and the MBCC transaction [4] - Material margin expanded from 53.1% to 54.7%, and EBITDA margin improved from 17.8% to 19.1% [5] - EBITDA increased by 13.2% to CHF 1.7 billion, with an EBITDA ratio of 19.1% of net sales [16] - Net profit increased strongly to CHF 922.6 million, representing 10.3% of net sales [17] - Operating free cash flow for the first nine months was CHF 850 million, with close to CHF 450 million generated in Q3 [17] Business Line Performance - Organic growth was 1% for the first nine months, gradually increasing from 0.2% in Q1 to 1.7% in Q3 [9] - Acquisitions, including MBCC, Kwik Bond, and Vinaldom, contributed 8.1% to growth [9] - The Americas region recorded 12.2% growth, with organic growth in Q3 at 4.3%, driven by infrastructure projects and reshoring activities [11] - Asia Pacific sales increased by 4.7%, with organic growth slightly negative at -0.5%, impacted by a sluggish residential market in China [12] Market Performance - EMEA region grew by 9%, with organic growth at 0.7%, improving to 1.0% in Q3 [10] - North America showed strong momentum, particularly in the U.S., supported by government-funded infrastructure projects [11] - China experienced moderate growth in the distribution business, while the project business declined [12] - Southeast Asia showed strong momentum with high single-digit growth year-to-date [12] Strategy and Industry Competition - The company confirmed its 6% to 9% growth target in local currency for 2024, with a focus on strategic targets outlined in the 2028 strategy [7] - Expansion in Latin America, the U.S., Germany, and Australia reflects the company's belief in the potential of fiber technology [6] - The acquisition of Kwik Bond and Vinaldom enhances the company's infrastructure offering and market penetration in North America and the Caribbean [7] Management Commentary on Operating Environment and Future Outlook - The company remains optimistic about the positive momentum in North America and expects continued growth in Q4 [22] - Management highlighted the potential for further organic growth, particularly in EMEA and Asia Pacific, despite challenges in the automotive sector [32] - The company is confident in achieving its long-term targets, with a focus on adaptive pricing and operational efficiency [61] Other Important Information - The company realized CHF 89 million in synergies from the MBCC transaction in the first nine months of 2024, on track to reach the upper end of the CHF 100 million to CHF 120 million target range [15] - Net debt-to-EBITDA leverage stood at 2.4 times, with expectations to reduce it further to around 2.1 by year-end [58] Q&A Session Summary Question: Impact of weather on North American construction activity in Q3 - Management noted that weather had minimal impact on Q3 performance, with strong growth driven by infrastructure spending and reshoring activities [21][22] Question: Growth potential for North America in the medium term - North America is expected to deliver high single-digit growth, driven by infrastructure spending, reshoring, and market share gains [40] Question: Trading update for October and organic growth drivers in Q4 - Management expects the positive momentum to continue into Q4, with growth drivers including infrastructure projects and reshoring activities [36] Question: EBITDA margin in Q3 and expectations for Q4 - The EBITDA margin in Q3 was slightly down year-over-year due to strong comparables, but the company expects continued improvement in Q4 [34] Question: Organic growth in the automotive business in Q3 - The automotive sector in Europe faced a decline in volumes, impacting organic growth in EMEA, but other regions were less affected [32] Question: Gross margin trends and expectations for 2025 - Gross margin is expected to remain within the 54% to 55% range, with seasonal fluctuations and no major deviations from expectations [66] Question: M&A pipeline and potential for bolt-on acquisitions in 2025 - The company has an active M&A pipeline and is open to bolt-on acquisitions, with leverage expected to decrease further in 2025 [59] Question: Pricing environment and expectations for 2025 - The company emphasized adaptive pricing due to volatile input costs, with no long-term pricing guidance provided [61] Question: Impact of China on Asia Pacific performance - China's direct business experienced a double-digit decline, impacting overall organic growth in Asia Pacific, but other regions like Southeast Asia and India showed strong growth [48] Question: Update on the EU Commission's investigation into price fixing in concrete admixtures - The investigation is ongoing, with no significant updates to report, and the company continues to support fair competition [84]

SIKA NINE MONTHS 2024 NEW RECORDS IN SALES AND PROFIT – ORGANIC GROWTH ACCELERATES SIKA INVESTOR PRESENTATION OCTOBER 2024 | --- | --- | |----------------------------------------------------------|-------| | | | | 1. FIRST NINE MONTHS 2024 | | | 2. OUR FIRST YEAR OF STRATEGY 2028 | | | 3. UNLOCK GROWTH WITH DURABILITY AND CIRCULARITY | | | | | | 4. OUTLOOK | | | | | | | | | | | 1. FIRST NINE MONTHS 2024 RECORD RESULTS IN FIRST NINE MONTHS OF 2024 ORGANIC GROWTH ACCELERATES FURTHER Sales and profit ▪ Sales o ...

SIKA INVESTOR PRESENTATION BAAR, JULY 30, 2024 RECORD RESULTS IN THE FIRST HALF OF 2024 GROWTH IN LOCAL CURRENCIES OF 12.8% ▪ Sales growth of 12.8% in local currencies. Record sales of CHF 5,834.8 million (+9.2% in CHF) ▪ EBITDA margin jumps to 18.7% (first half of 2023: 16.5%) ▪ Operating free cash flow increased to record of CHF 401.3 million (2023: CHF 322.5 million) ▪ Successful integration of MBCC with raised synergy guidance for the year (CHF 100-120 million) ▪ Two new plants opened in Peru and China ...

Summary of Sika AG H1 2024 Earnings Conference Call Company Overview - **Company**: Sika AG (OTCPK:SXYAY) - **Date of Call**: July 30, 2024 - **Participants**: - Thomas Hasler (CEO) - Adrian Widmer (CFO) - Dominik Slappnig (Head of Communications and Investor Relations) - Christine Kukan (Head of Investor Relations) Key Financial Highlights - **Net Sales**: CHF 5.8 billion, an increase of 9.2% in Swiss francs and 12.8% in local currency [5][10] - **Material Margin**: Expanded to 55.1%, up from 52.7% year-on-year, driven by cost management and synergies from MBCC acquisition [6][15] - **EBITDA**: Increased by 24% to CHF 1.093 billion, with an EBITDA margin of 18.7%, up from 16.5% [18] - **Net Profit**: CHF 577.1 million, a growth of over 40% compared to the previous year [20] - **Operating Free Cash Flow**: CHF 401 million, an increase of CHF 79 million from 2023 [20] Market and Operational Insights - **Market Share Gains**: Sika has gained market share across all markets, with a strong performance in challenging conditions [5][23] - **Acquisition Impact**: The MBCC acquisition contributed 13.1 percentage points to growth, while the Kwik Bond acquisition added 12.3% [10][12] - **Regional Performance**: - **EMEA**: Grew 13.5% at constant currencies, with a focus on infrastructure projects [11] - **Americas**: Strongest growth at 15.1%, driven by state-funded infrastructure projects [12] - **Asia Pacific**: Sales increased by 8%, but organic growth was slightly negative at -0.3% [13][14] Strategic Initiatives - **Synergy Guidance**: Increased synergy guidance for 2024 to CHF 100 million to CHF 120 million, up from previous estimates [6][17] - **Employee Engagement**: Achieved an engagement rate of 86% in a global employee survey, indicating high employee morale [7] - **Sustainability Goals**: Net-zero implementation roadmap validated by SBTi, aligning with the 2028 strategy [8] Future Outlook - **Sales Growth Projection**: Sika maintains a sales growth outlook of 6% to 9% in local currency for the second half of 2024 [23] - **Market Conditions**: Anticipates continued market share gains, particularly in infrastructure and commercial construction [23][36] - **Cost Management**: Expectation of improved cost management and operational efficiency to drive profitability [30][58] Additional Insights - **Acquisition Strategy**: Focus on integrating acquisitions like MBCC and Kwik Bond to enhance market presence and operational efficiency [6][10] - **Regional Expansion**: Plans for further expansion in the Middle East and Latin America, with new factories in Peru and China [9][55] - **Automotive Sector**: Facing challenges due to declining vehicle production, but increasing content per vehicle is expected to offset some losses [43][45] Conclusion Sika AG demonstrated strong financial performance in H1 2024, with significant growth in net sales and profitability. The company is well-positioned to continue gaining market share through strategic acquisitions, operational efficiencies, and a focus on sustainability. The outlook for the second half of the year remains positive, with expectations for continued growth and improved margins.

cost) Synergies CONSOLIDATED BALANCE SHEET 2023 NET DEBT/EBITDA DEVELOPMENT (AS REPORTED) STRONG DELEVERAGING PROFILE ▪ Net debt reduced to CHF 5.2 bn Dividend payment of CHF 3.30 per share (+3.1% vs. previous year) 2. SUCCESSFUL MBCC ACQUISITION, THOMAS HASLER (CEO) 6. OUTLOOK, THOMAS HASLER (CEO), CHRISTOPH GANZ (EMEA), PHILIPPE JOST (ASIA/PACIFIC), MIKE CAMPION (AMERICAS) ▪ Clear focus on "go where the money is" – targeting opportunities for growth and developing a vertical market approach in our regiona ...

Financial Data and Key Metrics Changes - The company reported record sales of CHF11.24 billion, marking a 14.5% growth in local currency and a 7.1% increase in Swiss francs [76][80] - The underlying profitability improved significantly, with a material margin expansion from 49.4% to 53.6%, an increase of 420 basis points [80] - Operating free cash flow reached a record CHF1.373 billion, up almost 60% from the previous year [77][30] - Net profit declined by 8.6% to CHF1.062 billion, while reported EBIT was CHF1.55 billion, a 1.9% decrease compared to the previous year [76][78] Business Line Data and Key Metrics Changes - The organic growth was 1.2% despite a negative market environment, with a clear improving volume trend throughout 2023 [81] - The acquisition of MBCC contributed significantly to top-line growth, adding 13.3% to the overall sales growth [81] - Other operating expenses increased by 31%, largely due to extraordinary one-time costs related to the MBCC acquisition [82] Market Data and Key Metrics Changes - The U.S. remains the largest single market, contributing 20% of revenue, while China accounts for 10% [13] - Emerging markets are catching up, with 41% of revenue coming from these regions, indicating a balanced growth strategy [37] - The company is optimistic about India’s infrastructure investments, which are expected to drive future growth [25] Company Strategy and Development Direction - The company aims for a 6% to 9% CAGR in local currency growth, focusing on market penetration and leveraging its strong brand [50][27] - The strategy includes expanding into key markets where significant infrastructure investments are occurring, such as the U.S. and India [15][25] - The company emphasizes innovation and sustainability, with 108 new patents and a commitment to reducing CO2 emissions [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential driven by megatrends such as population growth and urbanization [26][48] - The company is well-positioned to benefit from the reshoring trend in the U.S., which is expected to create significant infrastructure opportunities [24] - Management highlighted the importance of digitalization in construction, aiming to integrate more digital tools into their processes [61] Other Important Information - The company has made significant investments in expanding its footprint, including new factories in India and expansions in the U.S. [32][33] - The integration of MBCC is progressing well, with CHF41 million in synergies already realized within eight months [30][49] - The company is committed to maintaining a strong workplace culture and diversity, emphasizing equal opportunity for all employees [66][71] Q&A Session Summary Question: What is the material margin assumption on your guidance? - The company aims for a material margin of 54% to 55%, having achieved 53.6% for the whole year, with expectations for a flattish development going forward [21] Question: How much of the growth potential is at risk if Donald Trump returns to the White House? - Management noted that the U.S. is in a reshoring phase, with significant projects underway, indicating a positive momentum that should continue regardless of political changes [24] Question: Would Sika consider a spin-off similar to Holcim's U.S. business separation? - Management stated that such a move would weaken the company, emphasizing the benefits of their global diversity and integrated business model [28]

Sika AG (OTCPK:SXYAY) Q3 2023 Earnings Conference Call October 20, 2023 9:00 AM ET Company Participants Dominik Slappnig - Head Communication and Investor Relations Thomas Hasler - CEO Adrian Widmer - CFO Conference Call Participants Cedar Ekblom - Morgan Stanley Yassine Touahri - On Field Investment Research Yves Bromehead - Societe Generale Christian Arnold - Stifel Elodie Rall - J.P. Morgan Operator Ladies and gentlemen, welcome to the Sika Nine Months 2022 Conference Call and Live Webcast. I'm [Samra], ...

Sika AG (OTCPK:SXYAY) Q2 2023 Earnings Conference Call August 4, 2023 9:00 AM ET Company Participants Dominik Slappnig - Head, Corporate Communications & IR Thomas Hasler - CEO Adrian Widmer - CFO Conference Call Participants Priyal Woolf - Jefferies Martin Flueckiger - Kepler Cheuvreux Markus Mayer - Baader-Helvea Bernd Pomrehn - Vontobel Ebrahim Homani - CIC Yves Bromehead - Societe Generale John Fraser-Andrews - HSBC Stefanie Scholtysik - Mirabaud Securities Sebastian Bray - Berenberg Yassine Touahri - O ...

Sika AG (OTCPK:SXYAY) Q4 2020 Earnings Conference Call February 19, 2021 4:00 AM ET Company Participants Paul Hälg - Chairman Paul Schuler - Chief Executive Officer Thomas Hasler - Head Global Business and Industry Dominik Slappnig - Head-Corporate Communication & Investor Relation Adrian Widmer - Chief Financial Officer Christoph Ganz - Regional Manager Americas Ivo Schädler - Regional Manager, EMEA Mike Campion - Senior Vice President, Concrete Conference Call Participants Markus Mayer - Baader Bank Xinto ...