Strategy 2018 - Revised and Raised Targets

Against the background of Sika’s strong operating performance, the strategy review carried out in 2015 prompted the Board of Directors to modify the targets for the three remaining business years up to 2018.

  • In the second half of 2015 a bottom-up review of the Strategy 2018 was performed, involving all 160 Senior Managers in all countries.
  • The strength of Strategy 2018 and its growth model was confirmed.
  • Further growth potential and initiatives were identified.
  • Targets and key investments were reviewed and updated.
  • Confidence in continuation of sales growth and margin improvement.

Based on the comprehensive strategy review, the targets were revised upwards. Sika is now aiming for an EBIT margin of 12-14% (previously > 10%) and an operating free cash flow of > 8% (previously > 6%). The company is also aiming to increase its return on capital employed to 25% (previously > 20%) by 2018.

Sika Growth Model

The Sika Growth Model ensures the long-term success and the profitable growth of our company.

  • Market Penetration: We aim for global market leadership in our 7 target markets through cross selling, life-cycle management and the strengthening of our brand.
  • Innovation: The core of our business is our innovation management and our focus on developing quality products and the best solutions for our customers.
  • Emerging Markets: We accelerate the build-up of our organizations in the emerging markets and further expand our supply chain footprint.
  • Acquisitions: Acquisitions will enable us to leverage our market access and to strengthen our economies of scale.
  • Values: The Sika Spirit – which is defined in Sika’s Values & Principles – is the foundation of our future success. We act with respect and responsibility towards our customers, our shareholders and our employees which is reflected in our Sika brand promise “Building Trust”.