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	Philosophy and Policies Structure Aim: To clearly delegate authority and to set up an organisation which is simple and close to its markets. a) The Sika Group is divided into Regions, Strategic Business Units (SBU), Areas and Subsidiary Companies. Areas include a group of Subsidiary Companies and SBU which are culturally or economically similar; Regions consist of Areas in one geographical zone. Sika AG and its affiliates form the legal structure of the Sika Group. b) The Group is organised as follows: The Board of Directors of Sika AG is the Group's top executive body. The Chairman of the Board is responsible for the ongoing supervision of the Group Management. He represents Sika vis-à-vis third parties and the Board vis-à-vis the employees of Sika. The Group Management is responsible for the operational management. Its Chairman may be delegate of the Board. The Regional Managers are members of the Group Management, representing it vis-à-vis their Subsidiary Companies. The heads of Finance + Controlling, Research + Development, Operations, Industry and Construction are members of the Group Management representing it vis-à-vis their subordinates. Area Managers, who are at the same time General Managers of a Subsidiary Company, may be assigned certain tasks by Regional Managers. General Managers of Subsidiary Companies and SBU report directly to their respective Regional Manager. c) The Board of Directors of Subsidiary Companies and SBU safeguard the Group's interests and supervise the local management. Normally, the Area Manager - or in larger companies the Regional Manager - is a member of the Board. d) Chairman, Group Management and Regional Managers each employ minimal staff. They may, however, assign group-related tasks to personnel of Subsidiary Companies.


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