Holcim Ltd · SIX:HOLN
Holcim — Q3 2014 Earnings Presentation
44 slides from Holcim's earnings presentation, November 2014
Slide 1: 3rd quarter results 2014 and outlook
Strength. Performance. Passion. 3rd quarter results 2014 and outlook
Slide 2: 9M 2014 Milestones
9M 2014 Milestones • Like-for-like Group cement volumes increase driven by Asia Pacific, North America and Africa Middle East • Achieved Holcim Leadership Journey savings already exceed target • Like-for-like net sales up in all regions • Like-for-like operating profit increases despite restructurin
Slide 3: Holcim Leadership Journey is on track
Holcim Leadership Journey is on track All figures in million CHF 2012 2013 2014 achieved achieved achieved 9M cumulative since cum. Target 2012 Customer Excellence 31 135 214 380 500 Customer focus Value management Pricing policies Marketing and sales forces skills and motivation Cost Leadership 127
Slide 4: Asia Pacific benefits from strengthening of business in India and the Philippines
Asia Pacific benefits from strengthening of business in India and the Philippines • Economies in Group region Asia Pacific remained on a growth path • Construction activities in India started to pick up gradually • Higher cement volumes mainly thanks to India and the Philippines • Indonesia with vol
Slide 5: Latin America impacted by challenging conditions in key markets
Latin America impacted by challenging conditions in key markets • Economic development in Latin America remained uneven • Mexico sees recovery from declines last year, Brazil with cement volume increases • Aggregates and ready-mix concrete impacted by restructurings and plant closures last year • Lo
Slide 6: Europe with solid financial performance thanks to restructurings and cost discipline
Europe with solid financial performance thanks to restructurings and cost discipline • Some uncertainty following a strong first quarter with lively building activity • UK benefits from ongoing strong demand for building materials • Lower cement deliveries in Azerbaijan and Italy offset by higher vo
Slide 7: United States drive solid recovery in North America
United States drive solid recovery in North America • Residential construction remained key driver for the increase in construction activity in the US • In the US, volume increases in all segments except ready-mix concrete • Canada benefits from more dynamic construction markets • Operating EBITDA u
Slide 8: Solid performance in Morocco supports Africa Middle East
Solid performance in Morocco supports Africa Middle East, despite impact from political risks • Increasing political tensions partly slowed down markets • Morocco with significantly higher cement volumes thanks to exports • Holcim Lebanon increased cement deliveries • Operating EBITDA was down mainl
Slide 9: Key financial figures – Q3 2014
Key financial figures – Q3 2014 Million CHF Q3 +/- (if not otherwise stated) 2013 2014 LFL CIS FX Total Sales volumes - Cement (mt) 35.7 36.0 0.7% 0.0% 0.7% - Aggregates (mt) 45.4 44.1 -2.6% -0.2% -2.8% 3 - Ready-mix (mm ) 10.7 9.7 -6.8% -2.2% -9.0% Net sales 5,292 5,182 0.9% -0.4% -2.5% -2.1% Opera
Slide 10: Key financial figures – 9M 2014
Key financial figures – 9M 2014 Million CHF Full year 9M +/- (if not otherwise stated) 2013 2013 2014 LFL CIS FX Total Sales volumes - Cement (mt) 138.9 104.3 105.9 2.1% -0.5% 1.6% - Aggregates (mt) 154.5 114.8 113.7 -0.4% -0.6% -1.0% 3 - Ready-mix (mm ) 39.5 29.5 27.8 -4.1% -1.6% -5.7% Net sales 19
Slide 11: Cement – Sales volumes by region
Cement – Sales volumes by region Million t Total Group 9M 2012 107.1 20.1 20.2 20.2 9M 2013 104.3 9M 2014 105.9 54.7 52.8 53.7 8.9 8.7 9.6 6.4 5.9 6.4 18.5 18.7 18.4 ∆ 9M 13 / 9M 14 LFL Change in Total structure Asia Pacific 2.6% -0.8% 1.8% 1 Latin America -1.4% 0.0% -1.4% Europe 0.0% 0.0% 0.0% Nort
Slide 12: Aggregates – Sales volumes by region
Aggregates – Sales volumes by region Million t 56.2 55.2 54.0 Total Group 9M 2012 119.2 9M 2013 114.8 33.4 9M 2014 113.7 30.6 31.1 20.1 18.8 18.7 1.8 1.7 1.5 ∆ 9M 13 / 9M 14 LFL Change in Total 10.6 8.0 6.0 structure Asia Pacific -1.0% 0.0% -1.0% Latin America -25.1% 0.0% -25.1% Europe -1.4% -0.6% -
Slide 13: Ready-mix concrete and asphalt – Sales volumes by region
Ready-mix concrete and asphalt – Sales volumes by region Million m3/t 11.1 Total Ready-mix 8.9 9.0 9M 2012 34.4 4.2 9M 2013 29.5 3.5 3.6 9M 2014 27.8 6.0 5.7 5.4 3.1 2.8 3.2 8.6 8.0 8.0 0.9 0.6 0.5 7.8 6.2 4.9 ∆ 9M 13 / 9M 14 * LFL Change in Total structure Asia Pacific -0.3% -0.3% -0.6% Latin Ameri
Slide 14: Exchange rates
Exchange rates Statement of income 9M 12 9M 13 9M 14 +/- average exchange rates in CHF 1 EUR 1.21 1.23 1.22 -1.1% 1 GBP 1.48 1.45 1.50 3.8% 1 USD 0.94 0.93 0.90 -3.8% 1 LATAM Basket (MXN, BRL, ARS, CLP) 1 1.04 1.00 0.85 -14.6% 1 Asian Basket (AUD, IDR, INR, PHP) 1 1.07 1.00 0.90 -10.3% Statement of
Slide 15: Foreign exchange rate impact
Foreign exchange rate impact Million CHF Net sales impact Operating EBITDA impact 6.1% 322 3.5% 0.4% 1.0% 0.3% 0.5% 63 10 15 6 19 -19 -68 -75 -35 -90 -2.7% -86 -96 -132 -5.7% -3.1% -1.9% -9.3% -13.2% -8.2% -2.5% -355 -369 -6.2% -7.0% -465 -452 -10.8% -8.5% Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q
Slide 16: Net sales
Net sales Million CHF 15,908 14,941 14,243 Like-for-Like (LFL) 733 4.8% -35 -0.2% 505 3.4% Change in structure 33 0.2% -503 -3.2% -153 -1.0% Forex movements -63 -0.4% -430 -2.7% -1049 -7.0% Total change 703 4.6% -967 -6.1% -697 -4.7% 9M 12 9M 13 9M 14 © 2014 Holcim Ltd 16
Slide 17: Net sales by region
Net sales by region Million CHF 9M 2012 4434 4244 4252 9M 2013 9M 2014 2394 2343 2378 6285 5604 5206 726 666 655 2613 2556 2243 ∆ 9M 13 / 9M 14 LFL Change in Currency Total structure Asia Pacific 4.2% -1.4% -9.9% -7.1% Latin America 0.3% 0.0% -12.6% -12.3% Europe 1.4% -0.8% -0.5% 0.2% North America
Slide 18: Net sales by region
Net sales by region Net sales 9M 2014 Europe 28.9% North America 16.1% Asia Latin Africa Pacific America Middle 35.3% 15.2% East 4.4% © 2014 Holcim Ltd 18
Slide 19: Operating EBITDA
Operating EBITDA Million CHF Margin 1 19.3% 19.8% 19.7% 19.2% 3,077 2,951 2,740 Like-for-Like (LFL) 194 6.7% 32 1.0% 22 0.7% Change in structure 4 0.1% -76 -2.5% -15 -0.5% Forex movements -22 -0.8% -81 -2.6% -217 -7.4% Total change 176 6.1% -126 -4.1% -210 -7.1% 9M 12 9M 13 9M 14 1 excluding restruc
Slide 20: Operating EBITDA by region
Operating EBITDA by region Million CHF 9M 2012 9M 2013 693 727 9M 2014 573 349 370 427 1379 1131 994 221 215 212 721 736 629 ∆ 9M 13 / 9M 14 LFL Change in Currency Total structure Asia Pacific -1.3% -1.1% -9.7% -12.1% Latin America -5.5% 0.0% -9.0% -14.5% Europe 6.8% -0.5% -1.4% 4.9% North America 2
Slide 21: Operating profit
Operating profit Million CHF Margin 12.7%1 12.1% 11.5% 12.0% 1,829 1,798 1,719 Like-for-Like (LFL) 168 9.8% 73 4.0% 50 2.8% Change in structure -17 -1.0% -45 -2.4% 23 1.3% Forex movements -24 -1.4% -60 -3.3% -152 -8.4% Total change 127 7.4% -32 -1.7% -79 -4.4% 9M 12 9M 13 9M 14 1 excluding restructu
Slide 22: Operating profit bridge
Operating profit bridge Million CHF 323 92 1) 238 65 6 2 23 152 1'798 1'719 Op Profit Volume Price Fixed Variable CO2 Other CIS FX Op Profit 9M 2013 Costs Costs 9M 2014 1 including restructuring (CHF 37 million) and merger related costs (CHF 54 million) © 2014 Holcim Ltd 22
Slide 23: Operating profit by region
Operating profit by region Million CHF 9M 2012 1 9M 2013 9M 2014 397 316 155 997 215 801 111 147 702 184 162 171 557 575 490 ∆ 9M 13 / 9M 14 LFL Change in Currency Total structure Asia Pacific -1.9% -0.7% -9.8% -12.4% Latin America -6.2% 0.0% -8.6% -14.9% Europe 19.0% 8.1% -1.3% 25.8% North America
Slide 24: Net income
Net income Million CHF Net income Net income - shareholders of Holcim Ltd 1,277 1,161 1,093 1,040 933 779 8.8% 16.8% 33.5% -9.0% -10.3% 9.2% 9M 12 9M 13 9M 14 © 2014 Holcim Ltd 24
Slide 25: Cash flow from operating activities
Cash flow from operating activities Million CHF Margin 7.8% 7.4% 6.8% 1,172 1,088 1,047 Like-for-Like (LFL) 214 23.6% 160 14.7% -47 -4.0% Change in structure 1 0.1% -47 -4.3% -6 -0.5% Forex movements -37 -4.0% -29 -2.6% -72 -6.2% Total change 178 19.6% 84 7.8% -125 -10.6% 9M 12 9M 13 9M 14 © 2014 Ho
Slide 26: Statement of cash flows
Statement of cash flows Full year 9M Million CHF +/- 2013 2013 2014 Cash flow from operating activities 2,787 1,172 1,047 -10.6% Net investments to maintain productive -719 -373 -365 2.0% capacity and to secure competitiveness Free cash flow 2,068 799 682 -14.7% Expansion investments -1,282 -909 -78
Slide 27: Financial position
Financial position Million CHF Net financial debt Total shareholders' equity 19,892 18,732 18,677 10,280 9,461 10,412 30.9.2013 31.12.2013 30.9.2014 © 2014 Holcim Ltd 27
Slide 28: Financial debt, maturities and liquidity as of September 30, 2014
Financial debt, maturities and liquidity as of September 30, 2014 Maturity profile1 (mCHF) Liquidity summary • Cash + marketable securities: CHF 1,957 million • Cash + marketable securities + unused committed 5'000 credit lines: CHF 5,680 million Loans Capital markets 4'000 Debt summary • Current fi
Slide 29: Outlook for 2014
Outlook for 2014 • Holcim expects cement volumes to increase in all Group regions in 2014 with the exception of Europe • Despite positive development in North America, aggregates volumes are expected to decline • Ready-mix concrete volumes are expected to decline in all regions driven by restructuri
Slide 30: Cost and capex guidance for 2014
Cost and capex guidance for 2014 • Energy costs per tonne of cement produced slightly above 2013 level • Average interest rate unchanged at 4.8 percent • Long term expected tax rate of 27 percent • Maintenance capex of CHF 0.8 billion net • Expansion capex of CHF 1.1 billion © 2014 Holcim Ltd 30
Slide 31: Asia Pacific – regional overview
Asia Pacific – regional overview Million CHF 9M +/- (if not otherwise stated) 2013 2014 LFL CIS FX Total Cement volumes (mt) 52.8 53.7 2.6% -0.8% 1.8% - of which mature markets 2.3 2.0 3.6% -19.0% -15.3% - of which emerging markets 50.5 51.8 2.6% 0.0% 2.6% Aggregates volumes (mt) 18.8 18.7 -1.0% 0.0
Slide 32: Latin America – regional overview
Latin America – regional overview Million CHF 9M +/- (if not otherwise stated) 2013 2014 LFL CIS FX Total Cement volumes (mt) 18.7 18.4 -1.4% 0.0% -1.4% Aggregates volumes (mt) 8.0 6.0 -25.1% 0.0% -25.1% 3 Ready-mix volumes (mm ) 6.2 4.9 -21.9% 0.0% -21.9% Net sales 2,556 2,243 0.3% 0.0% -12.6% -12.
Slide 33: Europe – regional overview
Europe – regional overview Million CHF 9M +/- (if not otherwise stated) 2013 2014 LFL CIS FX Total Cement volumes (mt) 20.2 20.2 0.0% 0.0% 0.0% - of which mature markets 11.3 11.1 -1.8% 0.0% -1.8% - of which emerging markets 8.9 9.1 2.2% 0.0% 2.2% Aggregates volumes (mt) 55.2 54.0 -1.4% -0.6% -2.0%
Slide 34: North America – regional overview
North America – regional overview Million CHF 9M +/- (if not otherwise stated) 2013 2014 LFL CIS FX Total Cement volumes (mt) 8.7 9.6 10.2% 0.0% 10.2% Aggregates volumes (mt) 31.1 33.4 8.5% -1.0% 7.5% 3 Ready-mix volumes (mm ) 5.7 5.4 2.5% -6.6% -4.1% Net sales 2,343 2,378 9.3% -1.3% -6.5% 1.5% Oper
Slide 35: Africa Middle East – regional overview
Africa Middle East – regional overview Million CHF 9M +/- (if not otherwise stated) 2013 2014 LFL CIS FX Total Cement volumes (mt) 5.9 6.4 8.5% -1.0% 7.5% Aggregates volumes (mt) 1.7 1.5 -8.4% 0.0% -8.4% 3 Ready-mix volumes (mm ) 0.6 0.5 -11.6% 0.0% -11.6% Net sales 666 655 3.2% -2.2% -2.7% -1.6% Op
Slide 36: Cement – Price/volume variances per region
Cement – Price/volume variances per region Domestic clinker and Domestic cement prices cement volumes ∆ 9M 13 / 9M 14 * ∆ 9M 13 / 9M 14 Asia Pacific 1 3.5% 2.6% India 4.6% 1.9% Sri Lanka -2.7% 1.6% Bangladesh -2.8% 6.9% Vietnam 1.3% 0.2% Malaysia 8.5% -4.0% Indonesia 3.5% 4.3% Philippines 1.0% 13.0%
Slide 37: Cement – Price/volume variances per region
Cement – Price/volume variances per region Domestic clinker and Domestic cement prices cement volumes ∆ 9M 13 / 9M 14 * ∆ 9M 13 / 9M 14 Latin America 1 6.6% -1.4% 3 Mexico 1.0% 2.1% El Salvador -2.0% 2 -5.7% Costa Rica 7.8% 3.0% Nicaragua 2.4% 2 4.0% Colombia -4.1% 4.2% Ecuador 2.6% 2 -5.0% Brazil -
Slide 38: Cement – Price/volume variances per region
Cement – Price/volume variances per region Domestic clinker and Domestic cement prices cement volumes ∆ 9M 13 / 9M 14 * ∆ 9M 13 / 9M 14 Europe 1 -2.7% 0.0% Belgium -3.7% 13.8% France -4.1% 3.2% Germany -0.9% 1.3% Switzerland -7.8% -0.9% Italy -5.4% -18.2% Hungary 2.3% 3.4% Czech Republic -1.8% 5.3%
Slide 39: Cement – Price/volume variances per region
Cement – Price/volume variances per region Domestic clinker and Domestic cement prices cement volumes ∆ 9M 13 / 9M 14 * ∆ 9M 13 / 9M 14 North America 1 2.6% 10.2% Canada -1.7% 0.7% USA 4.7% 12.3% Africa Middle East 1 -4.0% 8.5% Morocco 2 3.4% -1.3% Lebanon 2 -0.2% 4.3% Réunion 0.8% 3 2.5% Ivory Coas
Slide 40: Aggregates – Price/volume variances per region
Aggregates – Price/volume variances per region Domestic aggregates Domestic aggregates prices volumes ∆ 9M 13 / 9M 14 * ∆ 9M 13 / 9M 14 Asia Pacific 1 -4.9% -1.0% Indonesia -0.3% 4.1% Australia -4.1% -2.5% Latin America 1 10.3% -25.1% Mexico -0.1% -46.0% Brazil -0.7% -11.7% Group 1 2.7% -0.4% * If n
Slide 41: Aggregates – Price/volume variances per region
Aggregates – Price/volume variances per region Domestic aggregates Domestic aggregates prices volumes ∆ 9M 13 / 9M 14 * ∆ 9M 13 / 9M 14 Europe 1 5.3% -1.4% United Kingdom 5.5% 4.9% Belgium -1.7% -5.1% France 4.7% -11.8% Germany 2.0% 10.8% Switzerland 1.6% -5.3% Italy 15.0% -9.6% Romania 17.7% -13.5%
Slide 42: Contact information and event calendar
Contact information and event calendar Contact information Event calendar Corporate Communications November 18, 2014 Investor Day in Zurich Phone +41 58 858 87 10 February 23, 2015 Press and analyst conference on Fax +41 58 858 87 19 annual results for 2014 [email protected] May 5, 2015 Resu
Slide 43: Disclaimer
Disclaimer Cautionary statement regarding forward-looking statements This presentation may contain certain forward-looking statements relating to the Group’s future business, development and economic performance. Such statements may be subject to a number of risks, uncertainties and other important
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