Sika AG: SIKA GROWS WORLDWIDE BY 1.6% IN LOCAL CURRENCIES AND INCREASES PROFIT MARGIN

Ad hoc announcement pursuant to Article 53 of the Listing Rules of the SIX Exchange Regulation

SIKA GROWS WORLDWIDE BY 1.6% IN LOCAL CURRENCIES AND INCREASES PROFIT MARGIN

• Sales in the first half of CHF 5,676.4 million (previous year: CHF 5,834.8 million)
• Sales increase of 1.6% in local currencies, of which 0.6% organic growth and 1.0% acquisition effect
• Weaker US dollar mainly responsible for high foreign currency effect of -4.3%
• Material margin at a consistently high level of 55.1% (previous year: 55.1%)
• EBITDA margin increased to 18.9% (previous year: 18.7%), supported by strong synergy dynamics; MBCC synergy targets for 2025 and 2026 increased by CHF 20 million
• Targeted investments in future growth:
  • Strategic acquisition of Elmich (Singapore), Cromar (UK), HPS (USA) and Gulf Additive (Qatar)
  • Expansion of global production capacity through new factories in Singapore, Xi'an and Suzhou (China), Quito (Ecuador), Ust-Kamenogorsk ( Kazakhstan), Belo Horizonte (Brazil) and Agadir (Morocco)
• Outlook for the 2025 financial year:
  • Despite the uncertain market development, Sika intends to continue to grow faster than the market and focus on improving margins
  • Slight increase in sales in local currencies expected for the full year
  • Disproportionate EBITDA increase and EBITDA margin between 19.5% and 19.8%
• Strategic medium-term targets for 2028 for sustainable, profitable growth confirmed

Despite a challenging economic environment, Sika continued to grow in local currencies in the first half of 2025 and increased its profit margin at the EBITDA level compared to the same period of the previous year. The weaker US dollar, which lost 10% against the Swiss franc in the second quarter, as well as the ongoing uncertainties on global markets, had an impact on the results.

Thomas Hasler, CEO: "In a challenging market environment, we once again succeeded in outperforming the industry trend and gaining further market share. We are particularly well positioned in the project and infrastructure sector – this includes, in particular, forward-looking and high-growth segments such as the global expansion of building structures in the field of artificial intelligence and digital infrastructure. With more than 1,000 data centers built with our technologies to date and a strong project pipeline, Sika has established itself as a preferred partner for technology leaders. Together with our customers, we are driving the digital infrastructure of the future worldwide."

EBITDA MARGIN INCREASED AND MBCC SYNERGY TARGETS RAISED In the first half of 2025, Sika increased sales in local currencies by 1.6%. The foreign currency effect amounted to -4.3% due to the weak US dollar. Sika thus achieved sales in Swiss francs of CHF 5.68 billion (previous year: CHF 5.83 billion). In a declining overall market, Sika managed to achieve positive organic growth of 0.6%.

The material margin remained consistently high at 55.1% (previous year: 55.1%). Against the backdrop of stable input costs, additional efficiency gains, and strong synergy dynamics, the EBITDA margin increased to 18.9% (previous year: 18.7%). The MBCC synergy targets were raised by CHF 20 million (new 2025 target: CHF 160-180 million, new 2026 target: CHF 200-220 million). Operating profit before depreciation and amortization (EBITDA) reached CHF 1,070.4 million in the first half of the year, slightly lower than the previous year, due to strong foreign exchange effects.

In line with the multi-year average, but below the exceptionally high prior-year figure, Sika's operating free cash flow amounted to CHF 181.9 million (previous year: CHF 401.3 million). The reduction is attributable to an increase in net working capital, unfavorable currency developments, and high investments in future growth. The majority of operating free cash flow is generated in the second half of the year and is supported by Group-wide initiatives to optimize net working capital.

INVESTMENTS AS A DRIVER FOR FURTHER GROWTH In the first half of 2025, Sika made targeted investments to strengthen its global market position, acquiring four companies and commissioning seven new plants. With over 400 production sites in 102 countries, the company maintains a comprehensive global manufacturing network and produces its cutting-edge technologies locally. This makes Sika largely independent of trade tariffs and enables it to reliably supply its customers even under challenging market conditions.

Market share was gained in all regions. Furthermore, investments were made worldwide – both in complementary, smaller acquisitions and in the expansion of production capacities to support future growth. A strategically important step was the minority stake in Giatec Scientific Inc., a global leader in digital concrete technologies based in Canada. Giatec specializes in intelligent testing methods and AI-supported solutions and develops innovative sensors, software solutions, and data analysis tools to optimize the quality, durability, and sustainability of concrete – from production and transport to processing on the construction site and subsequent monitoring of the structures.

GLOBAL MARKET SHARE GAINS - SLIGHT RECOVERY IN THE EMEA REGION The first half of the year saw a slight recovery in the construction markets in the largest region, EMEA (Europe, Middle East, and Africa), with increased growth of 3.1% in local currencies in the second quarter (first quarter: 0.7%). For the entire reporting period, sales growth in local currencies amounted to 1.9% (previous year: 13.5%). Sika recorded significant double-digit sales increases in the countries of the Middle East and Africa. Construction markets in Eastern Europe are also showing initial signs of recovery. In Germany, with its strong sales organization, Sika is excellently positioned to benefit from the government's recently passed infrastructure package. This envisages investments of EUR 500 billion over a period of ten years in the modernization and expansion of the country's infrastructure.

Sales in the Americas region increased by 3.5% in local currencies (previous year: 15.1%). After a good start to the fiscal year, the mixed signals regarding US trade policy unsettled many market participants, which also somewhat slowed market momentum. As a result, Sika's growth in the USA and Mexico weakened, while in Latin America the positive growth momentum of the previous year continued. Investments in data centers as well as government-supported infrastructure and commercial construction projects provided impetus for the US construction market. Thanks to Sika's local presence – almost 100% of the products and solutions sold in the USA are also manufactured in the country itself – and its leading market position in the renovation segment, Sika outperformed the overall market in this challenging environment.

In the Asia/Pacific region, sales in local currencies declined slightly by 1.7% in the first half of the year (previous year: 8.0%). This result is primarily attributable to the challenging, deflationary market environment in the Chinese construction sector, where Sika is focusing on protecting margins and improving efficiency. Without the negative development in China, Sika would have achieved positive growth in the low single-digit range in the region. Sika's markets in India and Southeast Asia, as well as in the Automotive & Industry segment, where the company further expanded the share of its technologies in vehicles of both local and international manufacturers, developed particularly dynamically.

OUTLOOK Despite the ongoing uncertain market development, resulting primarily from ongoing trade conflicts, Sika aims to continue growing faster than the market and is focusing on improving margins. For the 2025 financial year, Sika expects a slight increase in sales in local currencies. The company continues to anticipate a disproportionate increase in EBITDA and an EBITDA margin of 19.5% to 19.8%.

Sika confirms its strategic medium-term targets for 2028 for sustainable, profitable growth.

KEY FIGURES FIRST HALF OF 2025

NET REVENUE OF THE REGIONS

SIKA COMPANY PROFILE Sika is a specialty chemicals company and a global leader in the development and production of systems and products for bonding, sealing, damping, reinforcing, and protecting in construction and industry. Sika has a global presence with subsidiaries in 102 countries, produces in over 400 factories, develops innovative technologies for customers around the globe, and thus makes a significant contribution to the sustainable transformation of the construction and transportation sectors. Its more than 34,000 employees generated sales of CHF 11.76 billion in 2024.

CONTACT Dominik SlappnigCorporate Communications and Investor Relations+41 58 436 68 21

[email protected]

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