TARGET MARKET SEALING & BONDING

SIKA CAPITAL MARKETS DAY 2017

SEALING & BONDINGWHEN JOINTS CAN HANDLE ANY AMOUNT OF WATER

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SikaPower® FOR WIND BLADESSUPER TOUGHENED ADHESIVE

CLAIRE THOREY, HEAD WIND ENERGY EMEASIKA CAPITAL MARKETS DAY 2017

SikaPower® STRUCTURAL BONDING FOR WIND BLADES

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Proven technology platform from the Automotive market

Customized to meet the unique needs of the Wind Energy market

Structural wind blade adhesive allowing bigger blade sizes and higher blade bending

Extraordinary durability

Highest toughness combined with crack resistance

SikaPower® super toughened two-component adhesive for wind blade bonding

SALES DEVELOPMENTSikaPower® WIND BLADE BONDING

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Sales in t

76% ANNUAL AVERAGE GROWTH

2015 2016 FC2017 FC2018

60%ESTIMATED

ANNUAL AVERAGE GROWTH

NEXT 3 YEARS

Between 1990 and 2010:

World energy consumption increased > 50%

Demand for renewables x 10

Wind turbine size increased by 360%

Since 2009, the levelized cost of energy (LCOE) produced from wind decreased by 5% every year

Innovation is key for wind turbine producers

BIGGER AND MORE COST EFFICIENTINCREASING DEMAND AND SIZE REQUIRES INNOVATION

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Toughest adhesives with unmatched level of energy dissipation within the bond line

Extraordinary durability

Crack preventing technology

Leading cold temperature performance

SikaPower® WITH SmartCore TECHNOLOGYTAKES TOUGHENED ADHESIVE SYSTEMS TO THE NEXT LEVEL

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Core

SmartCore is a new, Sika patented epoxy toughening technology enabling the next generation of SikaPower® epoxy adhesives. It utilizes a Sika designed High Performance Molecule which dissolves in the epoxy matrix. The molecule forms in nano scale particles during the curing process of the adhesive creating a unique high level of toughness.

The SmartCore Technology enables highly resistant structural bonding:

Extraordinary fatigue and ageing performance

Structural wind blade adhesives allowing bigger blade sizes and higher blade bending

First cold cured epoxy adhesive meeting the impact requirements of hot cured systems

SikaPower® WITH SmartCore TECHNOLOGYTAKES TOUGHENED ADHESIVE SYSTEMS TO THE NEXT LEVEL

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The SmartCore Technology shifts the paradigm and allows high impact resistance combined with high mechanical performance.

UNIQUE BENEFITS OF SikaPower® - TOUGHER, FASTER, LIGHTER

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Weight reduction

10%compared to a standard adhesive

30% reduction in production cycle time

>20%tougher than other products available on the market

WIND MARKET: STRONG OUTLOOK FOR GROWTH

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Wind Power Market, Global, Cumulative Installed Capacity (GW), 2006–2025

source: Global Data

Top Markets for New Installed Capacity

0

200

400

600

800

1'000

1'200

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6

201

7

201

8

201

9

202

0

202

1

202

2

202

3

202

4

202

5Onshore Offshore

PR China

USAGermany

India

Brazil

France

Turkey

Netherlands

United Kingdom

CanadaRest of the

world

source: Global Wind Energy Council

Strong fundamentals for growth Increased use of composite materials

requires high strength bonding Increased use of dissimilar structural

materials Welding replaced by bonding to increase

output and optimize cost Relevant for all Sika customer groups

Common customer needs Mechanical performance and durability Optimization of process speed Reduction of design weight

TOTAL POTENTIAL FOR SikaPower® - NOT ONLY IN WINDSTRUCTURAL ADHESIVES ARE IN HIGH DEMAND

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CHF 2 billion addressable market

BUILD SAFER WITH SIKA’S FIRE-RATED SEALANTS

BERNHARD BOSSHARD, CORPORATE TECHNOLOGY HEAD ADHESIVE SYSTEMSSIKA CAPITAL MARKETS DAY 2017

SIKA FIRE-RATED SEALANTSHELP RETAIN FIRE AND SMOKE AT THE SOURCE

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When a fire occurs within a building, smoke and heat will spread through penetrations and joints endangering residents and blocking escape paths.

Fire-rated sealants from Sika seal penetrations and joints and help retain fire and smoke at the source for a certain time, allowing inhabitants to exit the building safely.

PASSIVE FIRE PROTECTING SEALANTSBUILD SAFER BUILDINGS WITH SPECIALLY DESIGNED SEALANTS

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Urbanization and condensed building trends require intelligent and safe building designs.

Grenfell Tower LondonJune 14, 2017

Torch Tower DubaiAugust 4, 2017

Discussion about safety standards for skyscrapers, fire resistant constructions such as tunnels, commercial and residential buildings, and steel structures is prevalent.

Sika’s fire resistant solutions include mortars, intumescent coatings, as well as sealants that prevent fire and smoke from spreading in the building, thus prolonging the evacuation time.

SIKA’S PASSIVE FIRE PROTECTION KNOWLEDGESEALANTS FULFILLING THE HIGHEST FIRE RESISTANT STANDARDS

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Sika’s fire-rated sealing solutions have

been externally tested, certified and

approved to provide up to

300 minutesprotection from spread of fire and smoke

Sika’s fire protection systems have

been protecting people and property

for more than

50 years

SPECIAL FIRE-RATED SEALANTSFULFILLING THE HIGHEST FIRE RESISTANT STANDARDS

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Transferring the knowledge from the intumescent coatings into our sealants resulted in products with up to 5 hours fire resistance

Self-expanding under fire to ensure tightness of the penetration and thermal disconnection

Excellent thermal insulating properties

Extremely low smoke density to prevent hazardous or combustible smoke emissions

Self-extinguishing

In addition to the fire rating, the sealants meet all other relevant joint sealant standards e.g. movement capabilities

PROJECT REFERENCESIKA BACKER ROD FIRE AND SikaHyflex®-250

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Project Description: Construction of double track railway tunnel (22.5 km) Construction of various railway tunnels (12.3 km in

total)

Project Requirements: Demand for double track due to increased passenger

numbers and need for reduced travel time New speed railway line (250 km/h) needed express

train tracks Fire protection: all joints between the concrete

elements were specified to be sealed with a fire resistant sealing system

Sika Solution: SikaHyflex®-250 Facade, Sika PE Backer Rod, primer,

insulation Sikaplan® WP 1100-20HL

TUNNELS FARRISEIDET – PORSGRUNN, HOLMESTRANDPORTEN, NORWAY

EXAMPLES OF APPLICATION AREASSIKA FIRE RATED SOLUTIONS FOR PENETRATIONS AND JOINTS

Sealing of fire partitions

Garages

Heating room areas

Escape routes

Storage facilities

Rooms housing flammable goods

Workshops

Fire barriers

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Addressable market for sealing and bonding products:CHF 500 million

MARKET POTENTIALNEW RANGE OF FIRE-RATED SEALANTS

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Market for global passive fire protection materials projected to reach CHF 27 billion by 2020

2015 2016 2017 2018 2019 2020

Rising number of incidents of fire breakouts and increasing regulations

Focus on implementing proactive measures to reduce damage caused by fire

Source: "The Global Passive Fire Protection Materials Market"; Global Industry Analysts, Inc.; San Jose, CA, USA, June 2015

SEAL IT SOONER WITH Sikaflex®

BERNHARD BOSSHARD, CORPORATE TECHNOLOGY HEAD ADHESIVE SYSTEMSSIKA CAPITAL MARKETS DAY 2017

Sikaflex® SEAL IT SOONER WITH Sikaflex®

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Can be applied to wet and green concrete considerably faster than other products on the market

No priming required and no special or additional preparation steps needed

For fast track projects

For joints in civil engineering projects as well as for concrete facades and interior floors

Sikaflex® sealants with adhesion on wet and green concrete

Typical Recommendation: cure the concrete for 28 days before

applying the sealant

wait until the concrete is visually dry

Trend:Owners and contractors are pushing to keep projects on track and since the last phase of the job is often sealing the joints, a reduction in the waiting time is of high value to them.

SEALANTS FOR WET AND GREEN CONCRETESEAL IT SOONER WITH Sikaflex®

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Typical product data sheets for sealants state: apply on a clean, dry and dust free surface

Statements on Technical Data Sheets for common sealants on the market:

• Freshly poured concrete or green concrete can present challenges with regard to achieving adequate adhesion due to its high moisture content and pH

• the water on the surface of the wet concrete acts as separation layer

COMBINING SIKA’S CORE COMPETENCESCONCRETE KNOWLEDGE MEETS ADHESIVES COMPETENCE

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Concrete is the world’s most widely used building material

Deep understanding about concrete and sealant chemistry enabled Sika to invent a unique sealant technology for concrete

Sika’s global concrete competence with

218experts in R&D

Sika’s knowledge in adhesive systems with

172R&D experts worldwide

Sika’s new sealants for wet and green concrete:

Can be applied to green concrete 24 hours after pour, instead of after 28 days as with other products on the market

Can be applied to wet concrete 60 minutes after rainfall, instead of when the concrete is visually dry as with other products on the market

Sikaflex® 1a+ and Sikaflex® 1cSL have been developed based on this new technology and successfully introduced in the USA, outperforming existing solutions on the market.

SEALANTS FOR WET AND GREEN CONCRETESEAL IT SOONER WITH Sikaflex®

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How could Sika achieve this incredible performance?

Sealant technology builds up adhesion on concrete independent of the presence of water or alkalinity

High water excess doesn’t impact the final propertiesof the cured sealant

Flexibility of the sealant is capable of compensating the movement caused by the concrete shrinking

SOLUTIONS FOR WET AND GREEN CONCRETESEAL IT SOONER WITH Sikaflex®

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Residential Driveways

One of the largest recurring uses of Sikaflex-1C SL is by concrete leveling contractors that specifically focus on leveling and sealing residential driveways

Following rainfall the work can be continued after 60 minutes and saves a lot of down time. Especially useful in areas with daily rain showers such as Florida

EXAMPLE OF APPLICATIONRESIDENTIAL DRIVEWAYS WITH Sikaflex-1c SL

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Trend in the market towards more time pressure to finish projects quickly/on time

Civil engineering projects such as airport runways or bridges with limited time slots for construction work –needs to be done over night

Climate change leads to more rain – more interruptions in construction work

MARKET POTENTIALSEALANTS WITH ADHESION ON WET AND GREEN CONCRETE

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Rising demand for solutions that speed up construction process or shorten interruptions

Estimated addressable market: CHF 2 billion

THANK YOU FOR YOUR ATTENTION