Philosophy & Policies

Policies – Finances

Aim

To strive for cash flow which allows for:

• Reasonable depreciation
• An above-average return on capital
• An attractive dividend

a. The Group:

• Finances its fixed assets by long term debt and/or equity
• Secures the possibility of additional funding of short and medium-term debt capital on every operational level
• Has an organizational structure which allows Sika AG to own Subsidiary Companies directly and entirely

b. Sika AG:

• Provides its Subsidiary Companies in due time with the funds necessary to finance the investments in accordance with strategic goals
• Enables its Subsidiary Companies to finance their fixed assets up to 100 % through equity and offers interest-bearing corporate loans in Swiss Francs if required
• Adjusts its share capital according to the needs of the Group, while generally avoiding any dilution on earnings per share
• Sources debt financing primarily on the capital market as required by operational needs
• Manages the liquid means of the Group (normally 7.5 %, but not less than 5 % of the Group’s turnover planned for the following year)
• Distributes a dividend of not less than one third of the Group’s net profit

c. The Subsidiary Companies:

• Finance their fixed assets up to 100 % by way of equity and their current assets by way of local bank loans, supplemented by interest-bearing Group loans
• Transfer dividends according to their equity to Sika AG, which finances the dividends to be distributed
• Pay license and management fees as well as interest to Sika AG according to their turnover to reimburse Sika AG for expenses associated with management, research and development