Holcim Ltd · SIX:HOLN
Holcim — FY2003 Earnings Presentation
22 slides from Holcim's earnings presentation, 2004
Slide 1: Annual Results 2003 and Outlook 2004
Annual Results 2003 and Outlook 2004 Strength. Performance. Passion. Holcim Group in 2003 Difficult economic environment – no improvement until second half of the year. Weak dollar pressures financial results. Holcim nevertheless reports a strong annual result: Higher sales volumes in all thre
Slide 2: Operating strengths; Progress in the US
Operating strengths Creation of cross-border management structures and regional IT service centers improving efficiency. Lower administration and selling expenses. Energy price hikes off-set by greater use of alternative fuels and raw materials. Innovative products enable us to produce more
Slide 3: Balance-sheet clean-up; Value-adding transactions
Balance-sheet clean-up Holcim has successfully continued to concentrate on its core business and further streamlined its portfolio of interests: Eternit AG in Switzerland was divested. Further reduction in shareholding in Cimpor of Portugal. Disposal of interest in Dyckerhoff (Germany). Succ
Slide 4: Europe; Operations in Europe
Europe Main drivers in the sector are infrastructure projects and residential construction. Markets in Spain and Italy continue to demonstrate solidity. In several West European markets, order volumes were stable or slightly lower. Crisis in the German building industry is not yet over. Ce
Slide 5: Facts on Europe; North America
Facts on Europe New production capacity and new products strengthen cost leadership. Higher sales volumes due to extended presence and solid market positions. Stiffer competitive situation and price war in Germany pressure operating results. Declining operating profit in Europe. Focus on c
Slide 6: Operations in North America; Facts on North America
Operations in North America Cement plant Grinding plant Terminal Cement plant project Cement capacity Group (North America): 21.3 million t. 10 Annual Results 2003 Facts on North America Approval process for building of two new cement plants still underway. Above-average increase in cement deliv
Slide 7: Latin America; Operations in Latin America
Latin America Construction industry held up well across most countries. Cement consumption showed solid increase in Mexico, Central Ameri- ca and the Caribbean, as well as in Colombia, Argentina and Chile. Main impetus came from private- sector housing construction. Venezuelan building indus
Slide 8: Facts on Latin America; Africa Middle East
Facts on Latin America Rise in consolidated cement deliveries. Higher sales volume and productivity improve results of Holcim Apasco in Mexico. Impressive business performance by our Group com- panies in the Caribbean and Chile. Performance in Costa Rica, Colombia and Ecuador hit by changes
Slide 9: Operations in Africa Middle East; Facts on Africa Middle East
Operations in Africa Middle East Group: Cement plant Grinding plant Terminal Participation: Cement plant Grinding plant Terminal Cement capacity Group (Africa Middle East): 13.3 million t; further 5.1 million t with partners. 16 Annual Results 2003 Facts on Africa Middle East Higher volumes for al
Slide 10: Asia Pacific; Operations in Asia Pacific
Asia Pacific Impressive growth rates in ASEAN countries. Overall backdrop remains healthy in the Pacific region. Major infrastructure projects and residential construction providing boost for building sector activity. Cement consumption grew in nearly all markets. Shortage of public-sector
Slide 11: Facts on Asia Pacific; Sustainable development
Facts on Asia Pacific Domestic demand for cement is growing in Asia; export business losing some of its attractiveness. Strengthening of market position in the Philippines after the merger of our two local Group companies. Joint venture in Australia proving itself and fully exploiting availabl
Slide 12: Key financial figures; Major changes in scope of consolidation
Key financial figures +/- Million CHF 2001 2002 2003 in CHF in loc. curr. Net sales 13'644 13'010 12'600 -3.2% 2.4% Operating EBITDA 3'335 3'341 3'311 -0.9% 6.8% Operating profit 1'945 1'903 1'925 1.2% 9.7% Group net income after minority interests 812 506 686 35.6% 45.7% Cash flow from operating ac
Slide 13: Exchange rates; Currency exposure and sensitivity
Exchange rates Statement of income average exchange rates in CHF 2001 2002 2003 +/- 1 EUR 1.51 1.47 1.52 3.4% 1 USD 1.69 1.55 1.34 -13.5% 1) 1 African Basket (EGP, ZAR, MAD) 1.24 1.00 1.04 4.0% 1) 1 Asian Basket (AUD, NZD, THB, PHP) 1.04 1.00 0.95 -5.0% Balance sheet year-end exchange rates in CHF 2
Slide 14: Cement and clinker sales volumes; Aggregates and ready-mix volumes
Cement and clinker sales volumes Million t 25.3 26.5 2002 2003 16.5 17.2 22.9 23.2 11.7 12.8 ∆ 02/03 Volume Change in Total 18.8 19.3 structure Europe 1.6% 3.1% 4.7% North America 4.2% 0.0% 4.2% Latin America 1.5% 1.2% 2.7% Africa Middle East 8.3% 1.1% 9.4% Asia Pacific -4.5% 5.8% 1.3% Total 1.5% 2.
Slide 15: Net sales; Net sales by region
Net sales Million CHF 13'644 13'010 12'600 Volume/price 166 1.2% -108 -0.8% 270 2.1% Change in structure 359 2.6% 398 2.9% 47 0.3% Forex movements -412 -3.0% -924 -6.7% -727 -5.6% Total change 113 0.8% -634 -4.6% -410 -3.2% 2001 2002 2003 28 Annual Results 2003 Net sales by region Million CHF 4320 4
Slide 16: Net sales by region; Operating EBITDA
Net sales by region Sales 2003 Europe 35% North America 19% Asia Pacific Latin 14% America Africa 22% Middle East 10% 30 Annual Results 2003 Operating EBITDA Million CHF Margin 26.3% 25.7% 24.4% 3'335 3'341 3'311 Volume/price/cost -41 -1.2% 184 5.5% 177 5.3% Change in structure 108 3.2% 73 2.2% 50 1
Slide 17: EBITDA; Operating profit
EBITDA Million CHF Margin 26.2% 26.1% 26.8% 3'574 3'399 3'383 - 0.6% - 4.9% - 0.5% 2001 2002 2003 32 Annual Results 2003 Operating profit Million CHF Margin 15.3% 14.6% 14.3% 1'945 1'903 1'925 Volume/price/cost -64 -3.2% 133 6.8% 151 8.0% Change in structure 65 3.2% -20 -1.0% 33 1.7% Forex movements
Slide 18: Operating profit by region; Other income and financial expenses
Operating profit by region Million CHF 2002 2003 504 482 298 273 242 287 163 198 785 766 ∆ 02/03 Volume/ Change in Currency Total price/cost structure Europe -10.9% 3.8% 2.7% -4.4% North America 0.3% 1.0% -9.7% -8.4% Latin America 12.7% 0.7% -15.8% -2.4% Africa Middle East 20.7% 2.0% -4.1% 18.6% Asi
Slide 19: Group net income; Cash flow from operating activities
Group net income Before minority interests in million CHF After minority interests in million CHF 1'031 -0.4% 932 +16.9% 812 797 -8.4% -22.7% 686 +35.6% 506 -37.7% 2001 2002 2003 36 Annual Results 2003 Cash flow from operating activities Million CHF Margin 20.8% 18.4% 17.6% 2'619 2'402 2'388 +9.7% -
Slide 20: Cash flow statement; Financing
Cash flow statement Million CHF 2001 2002 2003 +/- Cash flow from operating activities 2'402 2'388 2'619 9.7% Net investments to maintain productive capacity and to secure competitiveness -855 -843 -802 -4.9% Free cash flow 1'547 1'545 1'817 17.6% Expansion investments -875 -409 -490 19.8% Financial
Slide 21: Financial position; Financial indicators
Financial position 94.1% 93.9% 87.4% 10'383 9'768 9'435 9'499 8'857 8'299 31.12.2001 31.12.2002 31.12.2003 Equity in million CHF Net financial debt in million CHF Gearing 40 Annual Results 2003 Financial indicators 2001 2002 2003 Target Operating EBITDA margin (%) 24.4 25.7 26.3 30 ROE (%) 11.0 7.1
Slide 22: Outlook 2004
Outlook 2004 Only a modestly brighter picture for construction activity in many Group markets. In key markets, Holcim will achieve increased sales of cement, aggregates and concrete. Greater value added due to improved efficiency. Solid balance sheet allows selective investment in new market