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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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KEY PROJECT MANILA BAY RESORTS (OKADA MANILA), PHILIPPINES
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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
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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
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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
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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
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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
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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
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“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
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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
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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
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Woodlands N5C21
Yishun N4C17
Hougang N9C19
Seng Kang N3 C28 & 28A
EXPANSION OF MORTAR BUSINESS KEY PROJECT ACHIEVEMENTS - SINGAPORE, PRIVATE SECTOR PROJECTS
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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
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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
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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
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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
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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