Holcim Ltd · SIX:HOLN
Holcim — FY2014 Earnings Presentation
44 slides from Holcim's earnings presentation, Feb 23, 2015
Slide 1: Results 2014 and Outlook
a olcim RESULTS 2014 AND OUTLOOK
Slide 2: 2014 Milestones
2014 Milestones • Holcim Leadership Journey cumulative operating profit contribution of CHF 1.85 billion • Cement volumes up due to Asia, North America, and Africa Middle East • 3% like-for-like improvement in net sales as a result of higher volumes and prices in many markets • Like-for-like operati
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 12M cumulative cum. Target since 2012 Customer Excellence 31 135 248 414 500 Customer focus Value management Pricing policies Marketing and sales forces skills and motivation Cost Leadership 12
Slide 4: Asia Pacific benefits from rebound in India
Asia Pacific benefits from rebound in India • Solid economic growth in Group region • Rebound of Indian economy with positive effects on building industry • India, Philippines, and Indonesia drive cement volume growth • Ambuja Cements and Philippines record strongest increase in financial performanc
Slide 5: Latin America resists headwinds while Mexico recovers
Latin America resists headwinds while Mexico recovers • Challenges in Group region as economic growth remains low • Mexico recovers in the course of the year, posts strong fourth quarter • Aggregates and ready-mix concrete impacted by restructurings and plant closures last year • Margins increase de
Slide 6: Europe continues to improve thanks to restructuring efforts
Europe continues to improve thanks to restructuring efforts • Recovery of Group region’s economies weaker than expected • UK benefits from ongoing strong demand for building materials • Higher volumes in Russia, Romania, and Spain not able to make up volumes in other countries • Solid increase in fi
Slide 7: North America: Good performance in the United States drives results
North America: Good performance in the United States drives Group region’s results • Ongoing recovery of US economy drives demand for building materials • Holcim US increases cement volumes markedly, aggregates deliveries also higher • Canada achieves higher volumes in cement, aggregates, and RMX •
Slide 8: Africa Middle East with subdued growth
Africa Middle East with subdued growth • Heterogeneous development partly impacted by political tensions • Morocco balances muted domestic cement demand with clinker exports to Ivory Coast • Holcim Lebanon with increased cement deliveries • Higher operating profit and increased margins Africa Middle
Slide 9: Key financial figures – Q4 2014
Key financial figures – Q4 2014 Million CHF Q4 +/- (if not otherwise stated) 2013 2014 LFL CIS FX Total Sales volumes - Cement (mt) 34.6 34.4 -0.6% 0.0% -0.6% - Aggregates (mt) 39.7 39.4 -0.5% -0.2% -0.7% 3 - Ready-mix (mm ) 10.0 9.2 -7.1% -0.9% -8.0% Net sales 4,778 4,867 1.9% -0.4% 0.4% 1.9% Opera
Slide 10: Key financial figures – Full year 2014
Key financial figures – Full year 2014 Million CHF +/- (if not otherwise stated) 2012 2013 2014 LFL CIS FX Total Sales volumes - Cement (mt) 142.3 138.9 140.3 1.4% -0.4% 1.0% - Aggregates (mt) 158.2 154.5 153.1 -0.4% -0.5% -0.9% 3 - Ready-mix (mm ) 45.3 39.5 37.0 -4.9% -1.4% -6.3% Net sales 21,160 1
Slide 11: Cement – Sales volumes by region
Cement – Sales volumes by region Million t Total Group 2012 142.3 26.3 26.7 26.4 2013 138.9 2014 140.3 72.9 70.3 71.2 12.0 11.7 13.0 8.4 7.9 8.3 24.9 25.0 24.6 ∆ 2013 / 2014 LFL Change in Total structure Asia Pacific 2.0% -0.6% 1.4% 1 Latin America -1.5% 0.0% -1.5% Europe -1.0% 0.0% -1.0% North Amer
Slide 12: Aggregates – Sales volumes by region
Aggregates – Sales volumes by region Million t 74.3 74.1 73.1 Total Group 2012 158.2 2013 154.5 45.7 2014 153.1 41.3 42.8 26.3 25.2 24.8 2.3 2.2 2.0 ∆ 2013 / 2014 LFL Change in Total 14.0 10.2 7.5 structure Asia Pacific -1.5% 0.0% -1.5% Latin America -26.4% 0.0% -26.4% Europe -1.0% -0.4% -1.4% North
Slide 13: Ready-mix concrete and asphalt – Sales volumes by region
Ready-mix concrete and asphalt – Sales volumes by region Million m3/t 14.7 Total Ready-mix 12.3 11.9 2012 45.3 5.6 2013 39.5 4.6 4.9 2014 37.0 8.1 7.5 7.2 4.5 4.1 4.5 11.2 10.9 10.8 1.1 0.8 0.7 10.2 8.0 6.4 ∆ 2013 / 2014 * LFL Change in Total structure Asia Pacific -0.6% -0.2% -0.8% Latin America -2
Slide 14: Exchange rates
Exchange rates Statement of income 2012 2013 2014 +/- average exchange rates in CHF 1 EUR 1.21 1.23 1.21 -1.3% 1 GBP 1.48 1.45 1.51 4.0% 1 USD 0.94 0.93 0.92 -1.2% 1 LATAM Basket (MXN, BRL, ARS, CLP) 1 1.07 1.00 0.86 -13.6% 1 Asian Basket (AUD, IDR, INR, PHP) 1 1.09 1.00 0.93 -7.4% Statement of fina
Slide 15: Foreign exchange rate impact
Foreign exchange rate impact Million CHF Net sales impact Operating EBITDA impact 0.4% 1.0% 0.3% 0.5% 0.4% 0.6% 19 10 15 6 19 6 -90 -19 -68 -75 -86 -96 -35 -1.9% -2.7% -5.7% -9.3% -132 -3.1% -13.2% -8.2% -2.5% -355 -369 -6.2% -7.0% -465 -452 -10.8% -8.5% Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3
Slide 16: Net sales
Net sales Million CHF 21,160 19,719 19,110 Like-for-Like (LFL) 791 3.9% 49 0.2% 595 3.0% Change in structure -18 -0.1% -692 -3.3% -173 -0.9% Forex movements -44 -0.2% -798 -3.8% -1,030 -5.2% Total change 730 3.6% -1'441 -6.8% -608 -3.1% 2012 2013 2014 © 2015 Holcim Ltd 16
Slide 17: Net sales by region
Net sales by region Million CHF 2012 21,160 5809 5611 5554 2013 19,719 2014 19,110 3276 3171 3336 8343 7282 6970 947 884 861 3490 3349 3012 ∆ 2013 / 2014 LFL Change in Currency Total structure Asia Pacific 3.8% -1.0% -7.0% -4.3% Latin America 0.6% 0.0% -10.6% -10.0% Europe 0.2% -0.6% -0.6% -1.0% Nor
Slide 18: Net sales by region
Net sales by region Net sales 2014 Europe 28.1% North America 16.9% Asia Latin Africa Pacific America Middle 35.3% 15.3% East 4.4% © 2015 Holcim Ltd 18
Slide 19: Operating EBITDA
Operating EBITDA Million CHF Margin 1 20.3% 19.8% 19.6% 18.4% 3,889 3,896 3,747 Like-for-Like (LFL) 26 0.7% 273 7.0% 77 2.0% Change in structure 2 0.0% -110 -2.8% -15 -0.4% Forex movements -12 -0.3% -157 -4.0% -211 -5.4% Total change 15 0.4% 6 0.2% -149 -3.8% 2012 2013 2014 1 excluding restructuring
Slide 20: Operating EBITDA by region
Operating EBITDA by region Million CHF 2012 3,889 2013 3,896 946 991 2014 3,747 615 494 600 480 1789 1473 1332 278 283 276 960 938 861 ∆ 2013 / 2014 LFL Change in Currency Total structure Asia Pacific -1.7% -0.9% -7.0% -9.5% Latin America -0.8% -0.1% -7.4% -8.2% Europe 6.7% -0.6% -1.3% 4.8% North Am
Slide 21: Operating profit
Operating profit Million CHF Margin 12.9% 1 12.1% 12.0% 8.3% 2,357 2,317 1,749 Like-for-Like (LFL) -105 -5.6% 764 43.7% 100 4.2% Change in structure -17 -0.9% -43 -2.5% 7 0.3% Forex movements -5 -0.3% -112 -6.4% -147 -6.2% Total change -127 -6.8% 608 34.8% -40 -1.7% 2012 2013 2014 1 excluding restru
Slide 22: Operating profit bridge
Operating profit bridge Million CHF 483 150 1) 311 21 35 7 147 2'357 22 2'317 Op Profit Volume Price Fixed Variable CO2 Other CIS FX Op Profit 12M 2013 Costs Costs 12M 2014 1 including restructuring (CHF 72 million) and merger related costs (CHF 77 million) © 2015 Holcim Ltd 22
Slide 23: Operating profit by region
Operating profit by region Million CHF 2012 1,749 1 2013 2,357 436 510 2014 2,317 1273 -372 314 1030 164 199 934 220 216 220 709 722 663 ∆ 2013 / 2014 LFL Change in Currency Total structure Asia Pacific -1.7% -0.5% -7.1% -9.4% Latin America -1.1% 0.0% -7.0% -8.2% Europe 16.1% 1.6% -0.8% 16.8% North
Slide 24: Net income
Net income Million CHF Net income Net income - shareholders of Holcim Ltd 1,596 1,619 1,272 1,287 1,002 610 46.8% 59.3% 108.6% 1.5% 1.2% 122.2% 2012 2013 2014 © 2015 Holcim Ltd 24
Slide 25: Cash flow from operating activities
Cash flow from operating activities Million CHF Margin 14.1% 13.1% 12.5% 2,643 2,787 2,498 Like-for-Like (LFL) 52 -1.9% 330 12.5% -179 -6.4% Change in structure 3 0.1% -80 -3.0% -6 -0.2% Forex movements -26 -0.9% -107 -4.0% -103 -3.7% Total change -75 -2.8% 143 5.4% -288 -10.4% 2012 2013 2014 © 2015
Slide 26: Statement of cash flows
Statement of cash flows Million CHF +/- 2012 2013 2014 Cash flow from operating activities 2,643 2,787 2,498 -10.3% Net investments to maintain productive -790 -719 -738 -2.8% capacity and to secure competitiveness Free cash flow 1,854 2,068 1,760 -14.9% Expansion investments -803 -1,282 -1,020 20.4
Slide 27: Financial position
Financial position Million CHF Net financial debt Total shareholders' equity 19,234 20,112 18,677 10,325 9,461 9,644 31.12.2012 31.12.2013 31.12.2014 Debt ratios 2012 2013 2014 1 FFO /Net financial debt 26.4% 30.5% 31.7% Net financial debt/EBITDA 2.4x 2.2x 2.3x 1 Net income plus depreciation, amorti
Slide 28: Financial debt, maturities and liquidity
Financial debt, maturities and liquidity as of December 31, 2014 Maturity profile1 (mCHF) Liquidity summary • Cash + marketable securities: CHF 2,150 million 4'000 • Cash + marketable securities + unused committed credit lines: CHF 5,970 million Loans Capital markets Debt summary 3'000 • Current fin
Slide 29: Outlook for 2015
Outlook for 2015 • Holcim expects cement volumes to increase in all Group regions in 2015 with the exception of Europe • Aggregate and ready-mix concrete volumes are expected to increase • On a stand-alone basis and unconnected to the proposed merger with Lafarge, the Board of Directors and Executiv
Slide 30: Cost and capex guidance for 2015
Cost and capex guidance for 2015 • Energy costs per tonne of cement produced flat to slightly lower compared to 2014 level • Average interest rate unchanged at 4.7 percent • Long term expected tax rate of 27 percent • Maintenance capex of CHF 0.9 billion net • Expansion capex of CHF 0.6 billion • Me
Slide 31: Asia Pacific – regional overview
Asia Pacific – regional overview Million CHF +/- (if not otherwise stated) 2013 2014 LFL CIS FX Total Cement volumes (mt) 70.3 71.2 2.0% -0.6% 1.4% - of which mature markets 3.0 2.7 3.2% -14.8% -11.6% - of which emerging markets 67.3 68.6 1.9% 0.0% 1.9% Aggregates volumes (mt) 25.2 24.8 -1.5% 0.0% -
Slide 32: Latin America – regional overview
Latin America – regional overview Million CHF +/- (if not otherwise stated) 2013 2014 LFL CIS FX Total Cement volumes (mt) 25.0 24.6 -1.5% 0.0% -1.5% Aggregates volumes (mt) 10.2 7.5 -26.4% 0.0% -26.4% 3 Ready-mix volumes (mm ) 8.0 6.4 -20.0% 0.0% -20.0% Net sales 3,349 3,012 0.6% 0.0% -10.6% -10.0%
Slide 33: Europe – regional overview
Europe – regional overview Million CHF +/- (if not otherwise stated) 2013 2014 LFL CIS FX Total Cement volumes (mt) 26.7 26.4 -1.0% 0.0% -1.0% - of which mature markets 15.0 14.6 -2.4% 0.0% -2.4% - of which emerging markets 11.7 11.7 0.7% 0.0% 0.7% Aggregates volumes (mt) 74.1 73.1 -1.0% -0.4% -1.4%
Slide 34: North America – regional overview
North America – regional overview Million CHF +/- (if not otherwise stated) 2013 2014 LFL CIS FX Total Cement volumes (mt) 11.7 13.0 11.4% 0.0% 11.4% Aggregates volumes (mt) 42.8 45.7 7.7% -0.9% 6.8% 3 Ready-mix volumes (mm ) 7.5 7.2 2.2% -6.3% -4.1% Net sales 3,171 3,336 10.7% -1.5% -4.0% 5.2% Oper
Slide 35: Africa Middle East – regional overview
Africa Middle East – regional overview Million CHF +/- (if not otherwise stated) 2013 2014 LFL CIS FX Total Cement volumes (mt) 7.9 8.3 6.2% -0.8% 5.4% Aggregates volumes (mt) 2.2 2.0 -8.7% 0.0% -8.7% 3 Ready-mix volumes (mm ) 0.8 0.7 -15.0% 0.0% -15.0% Net sales 884 861 0.8% -1.6% -1.7% -2.6% Opera
Slide 36: Cement – Price/volume variances per region
Cement – Price/volume variances per region Domestic clinker and Domestic cement prices cement volumes ∆ 2013 / 2014 * ∆ 2013 / 2014 Asia Pacific 1 3.7% 2.0% India 4.8% 1.6% Sri Lanka -1.8% 1.4% Bangladesh -2.7% 5.6% Vietnam 1.3% -1.5% Malaysia 7.2% -3.1% Indonesia 4.3% 4.1% Philippines -0.1% 12.4% A
Slide 37: Cement – Price/volume variances per region
Cement – Price/volume variances per region Domestic clinker and Domestic cement prices cement volumes ∆ 2013 / 2014 * ∆ 2013 / 2014 Latin America 1 6.5% -1.5% 3 Mexico 3.3% 3.9% El Salvador -1.2% 2 -4.9% Costa Rica 5.1% 0.3% Nicaragua 2.1% 2 6.2% Colombia -3.8% 0.3% Ecuador 2.6% 2 -6.3% Brazil -4.8%
Slide 38: Cement – Price/volume variances per region
Cement – Price/volume variances per region Domestic clinker and Domestic cement prices cement volumes ∆ 2013 / 2014 * ∆ 2013 / 2014 Europe 1 -2.4% -1.0% Belgium -5.2% -3.1% France -3.9% -1.6% Germany 0.2% -1.4% Switzerland -2.6% -3.7% Italy -5.6% -17.5% Hungary -1.0% -1.2% Czech Republic -1.6% 7.6%
Slide 39: Cement – Price/volume variances per region
Cement – Price/volume variances per region Domestic clinker and Domestic cement prices cement volumes ∆ 2013 / 2014 * ∆ 2013 / 2014 North America 1 3.0% 11.4% Canada -1.2% 1.7% USA 4.6% 13.5% Africa Middle East 1 -4.1% 6.2% Morocco 2 4.0% -3.5% Lebanon 2 -1.5% -0.3% Réunion 1.8% 3 3.6% Ivory Coast -
Slide 40: Aggregates – Price/volume variances per region
Aggregates – Price/volume variances per region Domestic aggregates Domestic aggregates prices volumes ∆ 2013 / 2014 * ∆ 2013 / 2014 Asia Pacific 1 -5.7% -1.5% Indonesia 1.2% 11.8% Australia -5.0% -3.2% Latin America 1 10.7% -26.4% Mexico 3.9% -48.0% Brazil -1.7% -12.8% Group 1 2.2% -0.4% * If not ot
Slide 41: Aggregates – Price/volume variances per region
Aggregates – Price/volume variances per region Domestic aggregates Domestic aggregates prices volumes ∆ 2013 / 2014 * ∆ 2013 / 2014 Europe 1 4.1% -1.0% United Kingdom 5.5% 4.1% Belgium -0.7% -9.0% France 3.9% -12.1% Germany -0.9% 4.7% Switzerland 4.8% -8.7% Italy 12.2% -4.7% Romania 13.6% -6.1% Bulg
Slide 42: Contact information and event calendar
Contact information and event calendar Contact information Event calendar Corporate Communications February 23, 2015 Press and analyst conference on Phone +41 58 858 87 10 annual results for 2014 Fax +41 58 858 87 19 April 13, 2015 Annual general meeting of shareholders communications@holcim.com Apr
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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